Answer:
$31,104
Explanation:
EBIT / 12,000
= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]
EBIT = $31,104
Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104
Answer:
The quick ratio can be worked out as below;
Explanation:
Quick ratio=Current Assets excluding inventory stocks/Current liabilities
Current Assets=210+800
Current liabilities=$1,260
Quick Ratio =($210+4800)/$1,260
Quick Ratio=1.25
Answer:
a. $3.5 per share
b. $1.49 per share
c. $38.38 per share
d. 1.93 times
Explanation:
The computation is shown below:
a. Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = Additions to retained earnings + cash dividends
= $261,000 + $194,000
= $455,000
So, the earning per share equal to
= $455,000 ÷ 130,000 shares
= $3.5 per share
b. Dividend per share = (Total dividend) ÷ (number of shares)
= ($194,000) ÷ (130,000 shares)
= $1.49 per share
c. Book value per share = (Total equity) ÷ (number of shares)
= ($4,990,000) ÷ (130,000 shares)
= $38.38 per share
d. Market to book ratio = (Market price per share) ÷ (book value per share)
= $74 ÷ $38.38
= 1.93 times
$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
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Answer:
The correct answer is B. The vendor has latitude in establishing prices for the other party's goods or services.
Explanation:
In an ideal scenario, both sellers and buyers should agree on the price and conditions of a product, in order to avoid speculation and subsequent conflicts. In the event that a seller is the one who has the freedom to decide the conditions such as price or distribution, he is acting as a commercial agent, since he is autonomously deciding on aspects that should correspond to the buyer as the main agent.
