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3 years ago

Which of the following would tend to increase a firm's target debt ratio,other things held constant?

Business

1 answer:

Elodia [21]3 years ago

3 0

Answer:

D) The Federal Reserve tightens interest rates in an effort to fight inflation.

Explanation:

When the Federal pursues a contractionary monetary policy to fight inflation, it sells securities in order to raise the interest rate.

A higher interest rate means that both investing and borrowing becomes more expensive. The firm's previous debts become more expensive because they interest rate is now higher. For this reason, other things held constant, the frim has to raise its target debt ratio.

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A school realizes that they need a new copy machine for their main office. The copy machine costs $5,500. After speaking with th

Natali [406]

Answer:

$187.18

Explanation:

In this question, we use the PMT formula that is shown on the attachment below:

Given that,

Present value = $5,500 - $5,500 × 20% = $4,400

Future value = $0

Rate of interest = 2% ÷ 12 months = 0.16666%

NPER = 2 × 12 months = 24

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $187.18

5 0

3 years ago

Amber wants to start a fashion boutique that will sell tailor-made garments and accessories. She plans to open boutique stores i

Tpy6a [65]

Answer:

(E) The Small Business Administration

Explanation:

The Small Business Administration can provide assistance to small businesses in a variety of ways, including financial assistance, counseling, and other management aid.

5 0

3 years ago

Winston uses the high-low method. It had an average cost per unit of $10 at its lowest level of activity when sales equaled 10,0

Tems11 [23]

Answer: $94,000

Explanation:

$Average\ cost = \frac{Total\ cost}{number\ of\ units}$

At 10,000 units;

total cost = $10,000 × 10

= $100,000

At 20,000 units,

Total cost = 20,000 × 6.5

= $130,000

Variable cost per unit using high low method:

$= \frac{Total\ cost\ at\ 20,000\ units - Total\ cost\ at\ 10,000\ units}{20,000-10,000}$

= $3 per unit

Hence,

Total fixed costs = Total cost at 20,000 units - (No. of units × Variable cost per unit)

= $130,000 - (20,000 × 3)

= $70,000

Hence total cost at 8000 units = (No. of units × Variable cost per unit) + Total fixed costs

= (8000 × 3) + 70,000

= $94,000

6 0

3 years ago

The Stevens Co. had beginning inventory (1/1/10 of 8 units at $100, purchased 10 units of inventory at $120 on 3/1/10, and anoth

ankoles [38]

Answer:

The Stevens Co.

The cost of goods sold under FIFO is:

$1,760.

Explanation:

a) Data and Calculations:

1/1/10 Beginning inventory 8 units at $100 = $800

3/1/10 Purchases 10 units at $120 = $1,200

5/1/10 Purchases 12 units at $110 = $1,320

Total Goods available 30 units $3,320

Ending inventory 14 units

Units sold 16

Under FIFO:

Ending inventory

5/1/10 Purchases 12 units at $110 = $1,320

3/1/10 Purchases 2 units at $120 = $240

Total value of ending inventory = $1,560

Cost of goods sold = cost of goods available for sale minus the cost of ending inventory

= $1,760 ($3,320 - 1,560)

or Cost of goods sold:

1/1/10 Beginning inventory 8 units at $100 = $800

3/1/10 Purchases 8 units at $120 = $960

Total value of cost of goods sold = $1,760

b) FIFO (FIrst-in, First-out) is a cost evaluation method that assumes that the first inventories recorded are the first to be sold. This implies that the cost of goods sold is determined from the earlier stock while the cost of the ending inventory is determined from the later stock.

3 0

3 years ago

Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special

masya89 [10]

Answer:

Here is the complete question with options: Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special attention. Decide how each item would be handled for Abbey Company's inventory.

item#1: Goods in transit shipped to Abbey(Purchaser) FOB destination:

item#2: Goods in transit shipped to Abbey(purchaser) FOB shipping point.

item#3: Goods in transit shipped by Abbey(seller) FOB destination.

item#4: Goods in transit shipped by Abbey(seller) shipping point.

Now, checking how these items are handled by Abbey company´s inventory.

item#1: Goods in transit shipped to Abbey(purchaser) FOB destination: Excluded from inventory as goods has not arrived to the buyer´s place, therefore, ownership will not be transferred.

item#2: Goods in transit shipped to Abbey FOB (purchaser) shipping point: Included in inventory as goods are shipped to shipping point, so ownership will be transferred if carrier accept the goods from the seller.

item#3: Goods in transit shipped by Abbey FOB(seller) destination: Included in the inventory as Abbey owns the goods while goods is in transit.

item#4: Goods in transit shipped by Abbey(seller) shipping point: Excluded from inventory as a seller, Ownership has been transferred from Abbey.

4 0

3 years ago