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Hunter-Best [27]
3 years ago
13

Alpha Manufacturing has interest expense of $12 million, total assets of $184 million, sales of $176 million, long-term debt of

$16.4 million, and net income of $15 million. How will interest expense be recorded in the common-size income statement?
Business
1 answer:
erma4kov [3.2K]3 years ago
7 0

Answer:

0.068

Explanation:

Common size income statement in which we divide all the items with it's revenue. So, interest is $12 M, and sales is $176 M.

Dividing 12/176= 0.068

That means the interest is 6.8% of revenue. Common size is used for comparison purpose. If let's say in next year interest become 15% of revenue then company would know that it's using more debt. It's also used for comparing with competitors.  

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Under common law, most property issues can be settled by who has a good title. Explain why such traditional characteristics of p
Rom4ik [11]

Answer:

Traditional characteristics of property ownership, such as transfer, risk of loss, insurable interest, and right to encumber are "broken up" and subject to varying tests under the UCC to help create boundaries.

Explanation:

the Uniform Commercial Code (UCC), a standardized collection of guidelines that govern the law of commercial transactions.

Real estate ownership carries with it a complex set of rights, and the bundle of rights concept has traditionally been the way in which those rights are described and summarized.

Traditional characteristics of property ownership, such as transfer, risk of loss, insurable interest, and right to encumber are "broken up" and subject to varying tests under the UCC to help create boundaries and limits to control in other to avoid excesses.

6 0
3 years ago
Pick the correct statement from below. Multiple Choice A deferred call provision requires the bond issuer to pay the current mar
jeyben [28]

Answer: A deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.

Explanation:

A deferred call provision refers to the provision whereby the calling of a bond before a particular date is prohibited. The bond is known to be call protected during this period.

Therefore, a deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.

6 0
2 years ago
You are saving for retirement. To live​ comfortably, you decide you will need to save $ 1million by the time you are 65.Today is
kozerog [31]

Answer:

Monthly pay= 5344.67

Explanation:

Giving the following information:

To live​ comfortably, you decide you will need to save $ 1million by the time you are 65.

Today is your 29th ​birthday, and you​ decide to put the same amount into a savings account. If the interest rate is 8%​.

How much must you set aside each year?

n= 36

i= 0.08

FV= 1,000,000

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

We need to isolate A (monthly pay):

<u>A= (FV*i)/[(1+i)^n-1]</u>

A= (1000000*0.08)/(1.08^36-1)

A= 80000/14.96817184

A= 5344.67

8 0
3 years ago
Kevin has $20 to spend on summer clothes. He is looking at shirts, shorts, and flip-flops. Shirts are $10, shorts are $15, and f
rusak2 [61]
A the opportunity cost $10 the benefits is that he now has a shirt
5 0
3 years ago
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as fo
agasfer [191]

Answer:

Using LIFO:

TOTAL Sales : $19,875,500

COGS = $11,021,250

GROSS PROFIT = $8,853,750

Explanation:

KINDLY CHECK ATTACHED PICTURE

4 0
3 years ago
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