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3 years ago

A current liability is a debt that can reasonably be expected to be paid

Business

1 answer:

krok68 [10]3 years ago

5 0

Answer: Option A

Explanation: In simple words, current liabilities refers to the obligations that are risen due to borrowings made for uses that were short term or non repetitive.

The liquidity of a company is a measurement of its ability to pay short term debt. The current liabilities are either paid in a year or in an operating cycle whichever is longer.

Hence the correct option is A.

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Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of

Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0

2 years ago

On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percen

Hoochie [10]

Answer:

Period Bonds Interest Cash Increase in Bonds payable

Payable Expenses Paid Bonds payable at the end

2018 583352 23334.08 18000 5334.08 588686.1

2019 588686.1 23547.44 18000 5547.44 594233.5

2020 594233.5 23766.48 18000 5766.48 600000

Journal entries

Jan 01 2018

Cash account Dr $583352

Discount on Bonds Payable Dr $16648

Bonds payable Cr $600000

Dec 31 2018

Interest expense Dr $23334.08

Cash account Cr $18000

Discount on bonds Payable Cr $5334.08

Dec 31 2019

Interest expense Dr $23547.44

Cash account Cr $18000

Discount on bonds Payable Cr $5547.44

Dec 31 2020

Interest expense Dr 23766.48

Cash account Cr $18000

Discount on bonds Payable Cr $5766.48

Dec 31 2020

Bonds Payable Dr $600000

Cash account Cr $600000

01.01.2020 (Redemption at 101)

Bonds Payable Dr $600000

Loss on redemption of bonds Dr $11766.48

Cash account (600000*101%) Cr $606000

Discount on bonds payable Cr $5766.48

8 0

3 years ago

Explain what the national debt is and two ways to affects the country

Sati [7]

A National Debt is the amount of money obtained by one country from another that has not been paid. This can effect a country by means of loss of land actually owned, or it can cause agencies (e.g. Social Security Administration) to be cut on their budget. Meaning the agency to be cut of operational funding will loose a certain amount of funding until funds are found. Normally multiple agencies are cut to obtain some of the money to pay back the debt but this can really hurt agencies for reasoning of staffing as well as other operational costs. Hope this helps!

5 0

3 years ago

Henry Ford once said, "If I had asked people what they wanted, they would have said faster horses." The invention of the car is

Shkiper50 [21]

Answer:

The invention of the car is an early example of disruptive technologies.

Explanation:

The technologies that successfully break a certain long-running trend to start another successfully can be termed as disruptive technologies.
The rate of acceptance of such technologies is initially the lowest but they thrive very soon to completely replace the existing methods in use.
Disruptive technologies are often more efficient than their older alternatives and that is why they are deemed as profitable.

5 0

2 years ago

In the ________ model of informed consent, personal information can be collected until the consumer specifically requests that h

slava [35]

Answer:

"Opt-out " is the correct answer.

Explanation:

A paradigm using the implicit authorization of existing people who receive is considered as Opt-out model, consumers are considered ready to consume the communications even though they have sufficient choice to decline such.
This is indeed a phrase being used for the approach regarding direct sales messaging from the States.

7 0

2 years ago