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Mekhanik [1.2K]
4 years ago
5

Sally’s Dress Shop, Inc. reports operating income of $200,000 and interest expense of $18,000. The average common stockholders’

equity during the year was $20,000. The beginning assets balance is $80,000 and ending assets balance is $120,000. What is the leverage ratio? (Round y
Business
1 answer:
Sphinxa [80]4 years ago
7 0

Answer:

5

Explanation:

Given that,

Beginning assets = $80,000

Ending asset = $120,000

Operating income = $200,000

Interest expense = $18,000

Average common stockholders’ equity = $20,000

Average total assets:

= (Beginning assets + ending asset) ÷ 2

= ($80,000 + $120,000) ÷ 2

= $100,000

Leverage ratio:

= Average total assets ÷ Average common stockholders' equity

= $100,000  ÷ $20,000

= 5

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Answer:

The variable should be included or excluded based on its significance.

True

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When the value of the dollar declines in relation to other currencies, it benefits u.s. marketers who?
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4 years ago
Projects where management has a choice in implementing them are called _____ projects.
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They are called non-discretionary project.

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Non-discretionary projects are those that must be completed or funded by law, policy, health and safety, or court order. These are the steps you must take. For example, reacting to court orders or external proposals such as rights-of-way applications or drilling licenses.

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3 0
2 years ago
EcoFabrics has budgeted overhead costs of $1,001,700. It has allocated overhead on a plantwide basis to its two products (wool a
Paul [167]

Answer and Explanation:

a. The computation of overhead rate using activity-based costing is shown below:-

Cutting = Cost ÷ Machine Hours

Cutting = $381,600 ÷ 228,000

= $1.67 Per Machine Hours

Design = Cost ÷ No. of Setup

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= $362.63 per set up

The computation of the amount of Overhead Allocated is shown below:-

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5 0
3 years ago
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