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NeTakaya
3 years ago
12

What does it mean if a company has a debt ratio of 101.5%?

Business
1 answer:
7nadin3 [17]3 years ago
6 0

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

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Why is questioning such an important leadership skill
babymother [125]

questioning is such a good leadership skill because you can't learn without questioning something.

5 0
2 years ago
Read 2 more answers
Griffins Goat Farm, Inc., has sales of $667,000, costs of $329,000, depreciation expense of $73,000, interest expense of $46,500
rjkz [21]

Answer and Explanation:

The computation of the earnings and dividend per share is shown below;

But before that the net income should be determined

Sales   667000  

Less: Costs  329000  

Income before depreciation, interest and taxes 338000  

Less: Depreciation expenses 73000  

Operating income 265000  

Less: Interest expenses 46500  

Income before tax 218500  

Less: Tax  at  25% 54625  

Net income 163875  

a Earning per share = Net income ÷ Outstanding Common stock  

= $163,875 ÷ 27200  

= $6.02 per share

b Dividend per share = Dividend paid ÷ Outstanding Common stock  

= $47000 ÷ 27200    

= $1.73 per share

4 0
2 years ago
In an episode of the Glee television series, members of the glee club sold home-baked cupcakes at school to raise money. The stu
worty [1.4K]

Answer:

direct channel of distribution

Explanation:

Based on the information provided within the question it can be said that the student selling the cupcakes would be an example of a direct channel of distribution. This term refers to the means by which a company or business gets it's product straight to the consumer with-ought the use of intermediaries. Therefore since the student made the cupcakes and sold them himself he is the direct channel of distribution.

4 0
3 years ago
On January 1, Parma, Inc. borrowed $100,000 cash from First National and issued a two-year promissory note in that amount. Inter
crimeas [40]

Answer:

Interest expense account

Explanation:

In accounting, interests paid on loan, promissory or any other forms of loan written off to the income statement as an expense in the period in which they are incurred.

Therefore, the interest expense account will be will be debited when Parma records the entry relating to each of the four interest payments. The other leg of the account is to credit the profit and loss account to complete the record.

4 0
2 years ago
How should a loss contingency that is reasonably possible and for which the amount can be reasonably estimated be reported
guajiro [1.7K]

Answer:

as a footnote in financial statements or on the balance sheet

Explanation:

A loss contingency can be defined as the situation or occurrence in which there is uncertainty about an entity but that will be resolved when a/some future situation occurs or not.

Simply put, a loss contingency can be said to be loss of an entity that can be resolved later in future by the occurrence or not of an event.

When a loss can be reasonably estimated as seen from the question, it should be written as a footnote on a financial statement or on a balance sheet.

cheers.

5 0
3 years ago
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