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anyanavicka [17]
4 years ago
8

Long-term debt on the common-size balance sheet of Solid Rock Construction over the past three years is 30%, 34%, and 40%, respe

ctively. This indicates that the firm has increased its ______
Business
2 answers:
Katarina [22]4 years ago
3 0

Answer:

<u>Leverage.</u>

Explanation:

Long-term debt on the common-size balance sheet of Solid Rock Construction over the past three years is 30%, 34%, and 40%, respectively. This indicates that the firm has increased its <u>Leverage.</u>

Long Term Debt:

These are the debt which company has to pay with maturity of more than 12 months.

Leverage Ratios are the debt ratios. These ratios tells how company will meet its long term debt.  Leverage compares the assets or equity of company to the debt. If the shareholder assets are greater than creditor than company is less leveraged and vice versa.

Some of the ratios are:

  • Debt ratio
  • debt to equity ratio
  • Equity ratio
gtnhenbr [62]4 years ago
3 0

Answer:

The correct answer is: Leverage.

Explanation:

Leverage is when an investor or company is using <em>borrowed money to try to raise the rate of return earned on an investment</em>. Businesses and individual investors also make use of the leverage to raise their earnings. Leverage is better measured by using the debt to equity ratio which is calculated by taking the total debt of a company and dividing it by the total equity.

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3 0
3 years ago
Marin Company's accounts receivable arising from sales to customers amounted to $131000 and $114000 at the beginning and end of
nekit [7.7K]

Answer:

$481,000

Explanation:

To determine the cash flows from operating activities, the net Income for the year must be adjusted by non - cash items and changes in working capital items.

Therefore, given a decrease in Accounts Receivable $17,000 ($131000 - $114000) . Then the cash flows from operating activities to be reported on the statement of cash flows is $481,000 ($498000 - $17,000) .

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3 0
3 years ago
Assume that you purchased 140 shares of Misty Company stock for $78 a share, that you received an annual dividend of $1.60 a sha
sergeinik [125]

Answer:

Return  (%)   = 17.43%

Explanation:

T<em>he return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.</em>

Dividend is the proportion of the profit made by a company which is paid to shareholders.

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Dividend= ($1.60× 140)= $224

Capital gains= (90-78) × 140= $1680

Total dollar return on Investment = $224+ $1680= $1904

Total return in (%) = Return/ cost of shares × 100

                           = 1904/ (140 × 78) ×  100

                           = 17.43%

7 0
3 years ago
Caroline's Jewelry and Gifts is located between a hardware store and a sports bar. While her target market is adult women of med
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I would say A: Men who want to buy gifts. 
5 0
3 years ago
Read 2 more answers
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