Answer:
$106,500
Explanation:
The computation of the total stockholder equity is shown below:
Total assets = Total liabilities + stockholder equity
where,
Total assets = Current assets + fixed assets
= $741,000 + $592,000
= $1,333,000
And, the total liabilities is
= Current liabilities + long term debt
= $533,500 + $693,000
= $1,226,500
So, the total stockholder equity is
= $1,333,000 - $1,226,500
= $106,500
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Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
Should you need any clarification just hit that comment button. Cheers.
Except:
photographer..video equipment installer