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2 years ago

The Is financial statements detailing a firm assets liabilities and owners equality

Business

1 answer:

sdas [7]2 years ago

6 0

Answer

A balance sheet

Explanation

A statement of financial position/ a balance sheet is a financial statement that gives a report on a company’s assets, liabilities and a difference in their totals. This statement is a reflection of cost matching and full disclosure principle procedures that is practiced in accounting.

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Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2023.The following items are taken f

Aliun [14]

Answer:

A) See attached file for Balance Sheet

B) Current ratio = 1.26

C) Debt to Asset ratio = 18%

The Current ratio tells us that the company has 1.26 dollars of current assets to cover 1 dollar of current debt. That is a good thing, but to know if it´s enough covers, further information is needed. Others ratios can help to complete the picture as for example, quick ratio, assets turn over, inventory turn over, receivables turn over, etc. The debt to assets ratio. Tells us that the company owes 18% of its assets. The rest belongs to the stockholders. Again, it´s a good thing, but further information can help us to know if the company can invest in new projects, financing it with debt in a profitable way, for example, if Return on Assets is higher than debt rate.

Explanation:

B) Current ratio = Current Assets / Current Liabilities

Current ratio = 52,140 / 41,400

Current ratio = 1.26

C)Debt to Asset ratio = (Total Liabilities / Total Assets)*100

Debt to Asset ratio = (121,400 / 691,400)*100

Debt to Asset ratio = 18%

The current ratio measures a company's ability to pay short-term obligations or those due within one year, by relating current assets with current liabilities (liquidity ratio). The debt to total assets ratio shows the percentage of a company's total assets that were financed by creditors (financial ratio).

3 0

3 years ago

In its most recent annual report, Appalachian Beverages reported current assets of $39,900 and a current ratio of 1.90. Assume t

iVinArrow [24]

Answer:

Appalachian Beverages

The Updated current ratio is:

= 1.65

Explanation:

a) Data and Calculations:

Current assets = $39,900

Current ratio = 1.90

Current liabilities = $21,000 ($39,900/1.90)

Current Assets:

Beginning balance = $39,900

Inventory $5,100

Cash ($2,000)

Ending balance = $43,000

Current Liabilities:

Beginning balance = $21,000

Accounts Payable $5,100

Ending balance = $26,100

Analysis of Transactions:

1. Inventory $5,100 Accounts Payable $5,100

2. Delivery Truck $10,000 Cash $2,000 Two-year Note Payable $8,000

Updated current ratio = Current assets/Current liabilities

= $43,000/$26,100

= 1.65

6 0

2 years ago

On 1/29, General Electric bought supplies in the amount of $1,500. What account is debited and what account is credited in the r

alexdok [17]

Answer: Debit Supplies

Credit Cash

Credit Accounts payable.

Explanation:

The journal entry is an act of making records of the transactions in an organization which shows the debit and credit balances of the company.

Based on the information given, since General Electric bought supplies in the amount of $1,500, the journal entry will be:

Debit Supply $1500

Credit Cash / Accounts Payable $1500

4 0

2 years ago

Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?

WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales = $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

3 0

3 years ago

Which of the following is an advantage of first movers? Group of answer choices they are not prone to mistakes they have an oppo

joja [24]

Answer:

they have an opportunity to exploit network effects and positive feedback loops

Explanation:

The first mover advantage refers to competitive advantages that can be achieved by a firm that first enters a market or launches a new product first. E.g. Volkswagen has a first mover advantage in China because it was the first foreign car manufacturer to successfully a car factory there. Another type of first mover advantage would be the ones obtained by Apple for launching the first smartphone.

Network effects refers to a good or service becoming more valuable because more people purchase or use them, e.g. social media apps.

Positive feedback loops occurs when a company's output is used as a positive input in the productive system, e.g. when a company uses information gathered by customer service (CRM) to improve the products or services it offers.

6 0

3 years ago