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Anastaziya [24]

3 years ago

9

The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,1

75, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA = TA. So, if you find CA and TA, then you can solve for NFA.

1 answer:

Hunter-Best [27]3 years ago

8 0

Answer:

$5,181.06

Explanation:

For computation of firm's net fixed assets first we need to follow some steps which is shown below:-

Current Ratio = Current Assets ÷ Current Liabilities

Current asset = Current ratio × Current liability

= 1.60 × $970

= $1,552

Profit Margin = Net income ÷ sales

Net income = Profit margin × sales

= 0.098 × $5,175

= 507.15

Long term debt ratio = Long term debt ÷ (Long term debt + Total equity)

0.50 = Long term debt ÷ (Long term debt + 2881.53)

Long term debt = 1440.765 ÷ (1 - 0.5)

= 2881.53

Total debt = Current liability + Long term debt

= 970 + 2881.53

= 3851.53

Total Asset = Total debt + Total equity

= 3851.53 + 2881.53

= $6733.06

Net fixed Asset = Total Asset - Current Asset

= $6,733.06 - $1,552

= $5,181.06

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ioda

Answer:

B.Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.

Explanation:

As when common stock is issued, it provides cash to the company, for any kind of investments, or expense to be made, for running the business.

Financing activities are those which arrange monetary assets generally cash for the company, issue of securities, issue of bonds, borrowings as loans or note payable.

Thus, the statement B is correct.

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Providing services on account will provide revenue and net income will increase.

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3 years ago

Which costs are correlated with the firm’s sales and include the costs of labor, raw materials, and sales commissions?

Llana [10]

Answer:

The correct answer is letter "B": direct.

Explanation:

Direct Costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. Examples of direct costs are direct labor and materials, manufacturing supplies or even commissions out of sales.

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3 years ago

Nunavet Ocean Cruises sold an issue of 12-year $1,000 par bonds to build new ships. The bonds pay 4.85% interest, semi-annuall

frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 24.25 (1,000 face value x 4.85 bond rate / 2 )

time 24.00 (12 year 2 payment a year)

rate 0.04850 (current rate divide by 2 to get it annually)

$24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\$

PV $339.55

Then present value of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

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time 24.00

rate 0.04850

$\frac{1000}{(1 + 0.0485)^{24} } = PV$

PV 320.89

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3 years ago

Universal Travel Inc borrowed $500,000 on November 1, 2018 and signed a twelve month note bearing interest at 6% Principal and i

horrorfan [7]

Answer:

Interest will be $5000

So option (A) will be correct option

Explanation:

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