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3 years ago

If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?

1 answer:

5 0

Answer: If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain? 4.82percent

Explanation:

Sustainable growth = {[$540 / ($3,000 + $1,700)] [$216 / $540]} / {1 {[$540 / ($3,000 + $1,700)] [$216 / $540]}} = .04817 = 4.82 percent

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<span>If your poll is to accurately reflect public views, your survey respondents must reflect the </span>population.

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3 years ago

2. Mason performs services for Isabella. In determining whether Mason is an employee or an independent contractor, comment on th

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Answer letter B

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3 years ago

On June 15, 2021, Allen sold land held for investment to Stan for $65,000 and an installment note of $300,000 payable in five eq

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The amount of gain that will be recognized in 2021 under the installment method, is $27, 857 . 14

<h3>How to find the gain recognized?</h3>

First, find the profit margin on the land sold by Allen to Stan:
= ( Selling price of land - Allen's basis in the land) / Allen's basis in the land

= ( ( 300, 000 + 65, 000) - 255, 500) ) / 255, 500

= 109, 500 / 255, 500

= 42. 857 %

The gain to be recognized, using the installment method is:
= Profit margin x Amount paid by Allen in 2021

= 42. 857 % x $ 65, 000

= $27, 857 . 14

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1 year ago

The asset, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained ear

lutik1710 [3]

Answer:

Explanation:

For computing the retained earning ending balance, first, we have to compute the net income. So, the calculation is shown below:

= Service revenue - salaries expense - property tax expense - utilities expense - miscellaneous expense - rent expense

= $154,600 - $65,000 - $2,200 - $7,200 - $3,800 - $23,000

= $53,400

So, the net income would be $53,400

Now, we have to find the ending retained earning balance which equals to

= Beginning retained earning balance + net income - dividend paid

= $39,000 + $53,400 - $57,000

= $35,400

The preparation of the statement of retained earning is presented in the spreadsheet. Kindly find the attachment below:

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3 years ago

A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?

Digiron [165]

Answer:

Total allocated overhead= $1,840,000

Explanation:

Giving the following information:

Department Expected use of Driver Cost

Ordering and Receiving 2,000 $800,000

Mixing 50,000 1,000,000

Testing 1,500 900,000

Production information for Slime is as follows:

Expected use of Driver

Ordering and Receiving 1,600

Mixing 30,000

Testing 1,000

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and Receiving= 800,000/2,000= $400 per order

Mixing= 1,000,000/50,000= $20 per mixing hour

Testing= 900,000/1,500 = $600 per test

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Ordering and Receiving= 400*1,600= 640,000

Mixing=20*30,000= 600,000

Testing= 600*1,000= 600,000

Total allocated overhead= $1,840,000

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3 years ago