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lions [1.4K]
2 years ago
6

When using the book value of equity, the debt to equity ratio for Luther in 2018 is closest to: A) 0.43 B) 2.29 C) 2.98 D) 3.57

Business
1 answer:
ikadub [295]2 years ago
6 0

Answer:

The correct answer is 2.29

Explanation:

The debt-to-capital ratio (D/E) is a measurement of a company's financial leverage.

D/E=Total debt/Total equity

Total debt=(notes payable (10.5) + current maturities of long-term debt (39.9) + long-term debt (239.7) = 290.1

Total Equity = 126.6

D/E= 290.1/126.6=2.29

Thus, the debt to equity ratio for Luther in 2018 is closest to 2.29

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Reinhardt Furniture Company has 40,000 shares of cumulative preferred 2% stock, $150 par and 100,000 shares of $5 par common sto
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Answer:

20

Explanation:

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6 0
3 years ago
Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ
kirill115 [55]

Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

8 0
3 years ago
At the beginning of the year, SnapIt had $12,400 of inventory. During the year, SnapIt purchased $39,800 of merchandise and sold
AveGali [126]

The journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600.

<h3>Inventory shrinkage</h3>

Based on the information given the appropriate  the journal entry to record the inventory shrinkage is :

Debit Cost of goods sold $18,600

Credit Inventory $18,600

($12,400+$39,800-$33,600)

(To record inventory shrinkage)

Inconclusion the journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600

Learn more about inventory shrinkage here:brainly.com/question/6233622

4 0
2 years ago
jounralize and post closing entries and complete the closing process list all debit entries before credit entries credit account
DochEvi [55]

Preparing closing entries, which involves journalizing and uploading the entries to the ledger, is the eighth phase in the accounting cycle. During closure, there are four entries. To the Income Summary account, the initial entry cancels revenue accounts.

<h3>What order should the steps for closing an account be taken in?</h3>

Following is the basic order of closing entries: Clear the balances in the revenue accounts by debiting each revenue account and crediting the income summary account. To eliminate the balances in all expenditure accounts, credit all expense, accounts and debit the revenue summary account.

A journal entry debiting all revenue accounts and crediting the income summary is used to accomplish this. The same procedure is then used to calculate expenditures. Crediting the expense accounts and debiting the income summaries closes out all expenditures.

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brainly.com/question/13469087

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7 0
1 year ago
For Crafton Company, indirect labor is budgeted for $57,000 and factory supervision is budgeted for $65,000 at normal capacity o
Masteriza [31]

Answer:

$124,700

Explanation:

Indirect labor budgeted is $57,000

Factory supervision is $65,000

The normal capacity is 142,500

Direct labor 145,000

Therefore the flexible budget can be calculated as follows

= 57,000+65,000/142,500

= 122,000/142,500

= 0.86

0.86×145,000

= 124,700

Hence the flexible budget is $124,700

4 0
3 years ago
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