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prisoha [69]
2 years ago
9

Generally, a high ___________ ratio could lead investors and creditors to view the company as being very risky debt to owners' e

quity acid-test inventory turnover diluted earnings per share
Business
2 answers:
Art [367]2 years ago
8 0

Answer:

Debt to owners' equity ratio

Explanation:

Debt to owners' equity ratio shows if the shareholder equity can cover the debts the company has and it is calculated by dividing the company's liabilities by the shareholder equity.

Acid-test ratio shows if a business current assets can cover the short-term liabilities.

Inventory turnover ratio shows how well the company generates sales from its inventories and it is calculated by dividing the cost of the products sold by the average inventory.

Diluted earnings per share is a measure that shows what can happen if securities that are not common stock but that can be turn into that are exercised by the owner.

According to this, a high debt to owners' equity ratio could lead investors and creditors to view the company as being very risky because the equity is not enough to cover the debt the company has if something goes wrong.

Ipatiy [6.2K]2 years ago
6 0

High <u>debt to owner's equity ratio. </u>

This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.

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RL Photography reported net income of $122,700 for 2014. Included in the income statement were depreciation expense of $7,730, p
jeka57 [31]

Answer:

$142,209

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $122,700

Adjustment made:

Add : Depreciation expense $7,730

Add: Patent amortization expense $4,908

Less: Gain on disposal of plant assets -$4,417

Add: Decrease in accounts receivable $7,362 ($25,767 - $33,129)

Add: Increase in accounts payable $3,926 ($11,288 - $7,362)

Total of Adjustments $19,509

Net Cash flow from Operating activities                  $142,209

6 0
3 years ago
Suppose that a country's annual growth rates over a 10-year period are as follows: year growth rate 1 5% 2 3 3 4 4 – 1 5 – 2 6 2
tino4ka555 [31]
A.) The country's trend rate of growth over this period was 4.2% = (2+3+3+4+4% 1+5<span>% </span><span>2+6 +2+7+3+8+4+9+6+10+3/18)
   
b.)6-9 due to positive and increase.</span>
3 0
3 years ago
George bought a car for $26,500. he made no down-payment and financed the entire amount on a 5-year term with a monthly payment
pentagon [3]
Given:
Principal, P = 26500
term=5 years
Monthly payment, A = 695

Question: Find interest rate

Solution:
Unless there is a table available, there is no explicit formula to calculate interest.  However, the interest rate can be solved for using the formula to calculate the monthly payment, as follows.

A=\frac{P(i*(1+i)^{n})}{(1+i)^{n}-1}
Substituting 
P=26500
i=monthly interest rate to be found
A=monthly payment=695
n=5*12=60 months
A=\frac{26500(i*(1+i)^{60})}{(1+i)^{60}-1}
Rearrange to give successive estimates of i by
I(i)=(695/26500)*((1+i)^60-1)/(1+i)^60
Try initial estimate of i=0.02  (2% per month)
I(0.02)=0.0182
I(0.0182)=0.01736
I(0.01736)=0.01689
....
Eventually we get the value to stabilize at i=0.016265, or
Monthly interest = 1.6265% (to four decimal places)


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2 years ago
Question #1
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Steve walker was happy with his new personal computer. it had all the features he wanted, including a color monitor and cd-rom,
Sidana [21]
He was experiencing buyers remorse
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