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Anarel [89]
4 years ago
5

Queen, inc., has a total debt ratio of .32.

Business
1 answer:
gulaghasi [49]4 years ago
4 0

(A) Debt ratio = 0.32

Debt/(debt + equity)= 0.32

Debt = 0.32 *Debt + 0.32 *Equity

0.68* Debt = 0.32* Equity

Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity

Debt /equity ratio = (0.32/068*Equity)/Equity

Debt/Equity ratio = 0.32/0.68 = 0.47

Debt-equity ratio = 0.47 (Rounded to 2 decimals)

(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47

Equity multiplier = 1.47 (Rounded to 2 decimals)

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If 86,500 pounds of raw materials are needed to meet production in august, how many pounds of raw materials should be purchased
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6,200 pounds of raw materials should be purchased in July.

<h3>What are raw materials?</h3>
  • Raw materials are the goods or inventories required by a company to make its products.
  • Steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals are examples of raw materials.

The raw material purchases for July are computed as follows:

  • Required production in units of finished goods.
  • Units of raw materials needed per unit of finished goods.
  • Units of raw materials are needed to meet production.
  • Add desired units of ending raw materials inventory.
  • Total units of raw materials needless units of beginning raw materials inventory.
  • Units of raw materials to be purchased.

71,000 pounds × 10% = 7,100 pounds.

62,000 pounds × 10% = 6,200 pounds.

Therefore, 6,200 pounds of raw materials should be purchased in July.

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The correct question is given below:

If 71,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

5 0
2 years ago
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