Liabilty to pay only under certain conditions is

At the end of a recent year, Anderson Cleaning Service, a full-service house and office cleaning service, had total assets o

marysya [2.9K]

Answer:

Anderson Cleaning Service's liabilities were $2,160

Explanation:

Basing on accounting equation:

Total asset = Liabilities + Owner's (or Stockholders') Equity

Liabilities = Total asset - Owner's (or Stockholders') Equity

At the end of a recent year, Anderson Cleaning Service had total assets of $5,810 and equity of $3,650

Anderson Cleaning Service's liabilities = Total asset - Equity = $5,810 - $3,650 = $2,160

7 0

2 years ago

Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,

White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

$\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}$

$AW_C=1,000,000(A/P,$ 8% , 10)

⇒ $AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}$

⇒ $AW_2=2,000,000(A/P,$ 8%, 20)

⇒ $AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}$

⇒ $AW_C_2$ = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

$\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743$

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0

2 years ago

Masterson, Inc., has 4.4 million shares of common stock outstanding. The current share price is $89.50, and the book value per s

valentinak56 [21]

Answer:

Masterson, Inc.

1. The company's capital structure weights on a book value basis are:

Book Value Weights:

Equity = 0.27 or 27%

Debts = 0.73 0r 73%

2. The company's capital structure weights on market value basis are:

Market Value Weights:

Equity = 0.75 or 75%

Debts = 0.25 or 25%

3. The market value weights of Masterson's common stock and debts are more relevant because they represent a more current valuation of the equity and the debts. It is easier to calculate the book value weights since the information is more readily available within the entity than the information on market weights.

Explanation:

a) Data and Calculations:

Equity Units Total Value

Outstanding common stock 4.4 million shares

Current share price $89.50 $393.8 million

Book value per share $11.25 $49.5 million

Debt Units Total Value

First bond:

Face value 81,000 $81 million

Market value 81,000 $78.165 million

Coupon rate = 5.1% $4.131 million p.a.

Second bond:

Face value 53,000 $53 million

Market value 53,000 $54.445 million

Coupon rate = 5.3% $2,809 million p.a.

Total book value of bonds 134,000 $134 million

Total market value of bonds 134,000 $132.61 million

Capital structure Equity Bonds Total

Book value $49.5 million $134 million $183.5 million

Market value $393.8 million $132.61 million $526.41 million

Book Value Weights:

Equity = $49.5/$183.5 = 0.27 or 27%

Debts = $134/$183.5 = 0.73 0r 73%

Market Value Weights:

Equity = $393.8/$526.41 = 0.75 or 75%

Debts = $132.61/$526.41 = 0.25 or 25%

3 0

2 years ago

- True or False: Professional shoplifters steal primarily for the excitement.

Vladimir79 [104]

False, professional shoplifters steal to resell items

4 0

3 years ago

Prices tend to be sticky because Multiple Choice government controls most prices. foreign competition discourages domestic firms

maria [59]

Answer:

firms are worried that frequent price changes would annoy consumers.

Explanation:

A price is said to be sticky when there are resistance in market price to change immediately even when changes in the economy of a particular country entails differing price of products is optimal.

In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.

Hence, prices tend to be sticky because firms are worried that frequent price changes would annoy consumers. This ultimately implies that, price stickiness arises due to the fact that business firm or entity are very much concerned or worried that a frequent change in the price of goods and services would make the consumer annoyed.

4 0

2 years ago