Answer:
The correct answer is option a.
Explanation:
An increase in the demand for dollars will shift the demand curve to the right, in the market for foreign exchange. Dollars are demanded by foreign consumers to pay for the import or purchase of US products.
An increase in the demand for goods and services by the foreign producers will increase the demand for US dollars as well.
This will cause the demand for dollars curve to shift to the right. This rightward shift in the curve will increase the value of US dollars in the foreign exchange market.
Answer:
1. T-accounts:
Accounts Debit Credit
Accounts Receivable
Balance $4,200
Service Revenue 8,400
Cash 10,200
Accounts Debit Credit
Service Revenue
Accounts Receivable 8,400
Accounts Debit Credit
Supplies
Balance $400
Accounts Payable 2,300
Balance c/d $2,700
Accounts Debit Credit
Accounts Payable
Balance $3,500
Supplies 2,300
Cash $3,700
Balance c/d $2,100
Accounts Debit Credit
Cash Account
Balance $3,400
Accounts Receivable 10,200
Advertising $1,000
Accounts Payable 3,700
Deferred Revenue 1,100
Balance c/d $10,000
Accounts Debit Credit
Advertising Expense
Cash 1,000
Accounts Debit Credit
Accounts Payable
Cash 3,700
Accounts Debit Credit
Deferred Revenue
Balance $300
Cash 1,100
Balance c/d $1,400
Explanation:
a) Data:
General Entries:
Accounts Debit Credit
1. Accounts Receivable 8,400
Service Revenue 8,400
2. Supplies 2,300
Accounts Payable 2,300
3. Cash 10,200
Accounts Receivable 10,200
4. Advertising Expense 1,000
Cash 1,000
5. Accounts Payable 3,700
Cash 3,700
6. Cash 1,100
Deferred Revenue 1,100
b) The beginning balance of each account before the transactions is:
Cash, $3,400
Accounts Receivable, $4,200
Supplies, $400
Accounts Payable, $3,500
Deferred Revenue, $300
Quality information is derived from data.
Answer:
a. what is Suncoast's current debt ratio?
debt ratio = liabilities / equity = $400,000 / $600,000 = 0.67
b. what would the new debt ratio be if the machine were leased? if it is purchased?
if X-ray machine is leased, debt ratio = $400,000 / $600,000 = 0.67
if X-ray machine is purchased, debt ratio = $600,000 / $600,000 = 1
c. is the financial risk of the business different under the two acquisition alternatives?
yes, because a higher debt ratio means that the company is under a higher financial stress since it has more outstanding loans, which increases the financial risk.
