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3 years ago

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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A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:

iVinArrow [24]

Answer: The correct procedure is to “debit cash over and short for $43”.

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3 years ago

Gitano Products operates a job-order costing system and applies overhead cost tojobs on the basis of direct materialsused in pro

IgorLugansk [536]

Answer:

$3,400

Explanation:

The computation of predetermined overhead rate for the year is shown below:-

Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100

= $119,600 ÷ $92,000 × 100

= 130%

2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-

Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate

= ($24,000 + $140,000 - $17,000) × 130%

= $147,000 × 130%

= $191,100

Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000

= $194,500

Underapplied overhead = $194,500 - $191,100

= $3,400

6 0

3 years ago

A Condominium owner files a declaration with the county clerk which divides his individual ownership and ownership in common ele

Degger [83]

Answer:

subdivision

Explanation:

A real property subdivision takes place when a real property (parcel of land, house, etc.) is divided into smaller areas. The whole idea behind a subdivision is that it should be easier to sell the property in smaller parts.

When a subdivision is carried out on a condominium, the physical space is not divided, rather the property time is divided into time share units. In this case, a person can purchase the right to use that condominium during 3 weeks each year.

4 0

3 years ago

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has

aliya0001 [1]

Answer:

Years to maturity Price of Bond C Price of Bond Z

4 $1,084.42 $711.03

3 $1,065.93 $774.31

2 $1,045.80 $843.23

1 $1,023.88 $918.27

Explanation:

Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.

The price of each bond of the bond can be calculated using the following excel function:

Bond price = -PV(rate, NPER, PMT, FV) ........... (1)

Where;

rate = Yield to maturity of each of the bonds

NPER = Years to maturity

PMT = Payment = Coupon rate * Face value

FV = Face value

Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:

Years to maturity Price of Bond C Price of Bond Z

4 $1,084.42 $711.03

3 $1,065.93 $774.31

2 $1,045.80 $843.23

1 $1,023.88 $918.27

Download xlsx

4 0

3 years ago

A company can save tens of thousands of dollars in the long run by converting to energy saving bulbs and instituting energy savi

Vesnalui [34]

Answer: business proposal

Explanation:

Business proposal shows the benefits of embarking on a particular project, the plans needed to execute the project, the breakdown of materials needed to achieve the aim of the project, time frame, and the budget or total cost breakdown to successfully complete the project.

In summary, business proposal is written in other to convince investors to invest in a particular project.

3 0

3 years ago