4 years ago

As the debt ratio increases,

Business

1 answer:

Sav [38]4 years ago

4 0

Answer:

2. more assets are debt financed

3. the ratio of debt to equity increases

Explanation:

We know

The formula of the debt ratio is presented below:

Debt ratio = Total debt ÷ Total assets

where,

Total debt would be

= Current liabilities + Long term debt

And the total assets = Total debt + owner's equity

So, if the debt ratio is increased so it impacted the more assets for debt-financed plus the debt to equity ratio is also increased.

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3 years ago

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4 years ago

Kluber, Inc. had net income of $917,000 based on variable costing. Beginning and ending inventories were 56,700 units and 55,400

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Answer:

The answer is " $\$235,410$ ".

Explanation:

Variable cost net income $=\$917,000$

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3 years ago

Concord reported the following information for the current year: Sales (49000 units) $980000, direct materials and direct labor

Zanzabum

Answer:

Concord BEP: 400,000 units

Explanation:

Break Even Point (Units) = Fixed Cost / (Selling Price - Variable Cost) or

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Concord Break Even Point:

Contribution Margin Per Unit: (($980,000 - ($490,000 + $49,000)) / 49,000 = $9

Concord BEP: $360,000 / $9 = 400,000 units

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3 years ago