Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.
Explanation:
We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.
Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.
The debt ratios are therefore not directly comparable because each company is in a different industry.
Answer:
1 . b
2. 84.03 euro
3. 135.28 euros
4. 177.22 dollars
5. 0.77
6. 0.154
Explanation:
1. Dollar depreciated
2. 1 Euro = 1.19 dollars
So therefore
1 dollar = 1 euro/1.19
So 100 dollars = 100 * (1/1.19) = 84.03 Euro.
3. A = p * (1 + (r/n))^(nt)
Where p = principal = 84.03
A = accrued amount after maturity
r = rate = 10%
n = number of compounding = yearly = 1
t = time of maturity = 5
So therefore:
A = 84.03 (1 +0.1)^5
A = 135.28 Euro
4. Convert 135.28 euros to dollars after 5 years
Since 1 Euro = 1.31 dollars
So therefore 135.28Euro will be 1358.28 * 1.31 = 177.22 dollars
5 - (final value/initial value) - 1 )
Where final value = 177.22
Initial value = 100
So therefore [ (177.22/100) - 1] = 0.77
6 - average annual return = sum of earning after maturity / time of maturity
So therefore : 0.77/ 5 = 0.154
Answer:
Dr Cash account 50,000
Cr Bonds Payable account 50,000
Explanation:
The company received $50,000 in cash. Since cash is an asset and it increased when the bonds were issued, it should be debited.
The company has to pay bonds worth $50,000. Since bonds payable is a liability and it increased when the bonds were issued, it should be credited.
Answer:
High-school students who are willing to put in the work and effort for AP courses.
Answer:
a. determine a reasonable price for the cement and insert it into the contract.
Explanation:
Since in the question it is mentioned that the amy & builders corporation would entered into a contract where amy agrees to deliver the cement at the construction site. At the same time they deny to include the price in the agreement. So here the court would say that calculate the price for the cement and the same would be involved in the contract as without price the contract is not valid
Hence, the option a is correct
