1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Damm [24]
2 years ago
12

Helpful in assessing the risk of lending to investors for particular projects, which of the following calculations measures the

income-producing ability of the property to meet operating and financial obligations?
A. Profitability ratios
B. Income multipliers
C. Financial risk ratios
D. Income tax multipliers
Business
2 answers:
Degger [83]2 years ago
7 0

Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.  

allochka39001 [22]2 years ago
4 0

Answer:

The income-producing ability of a company is determined by calculating the Profitability ratios.

These ratios calculate the ability of a company to produce income and turn the income into profits and added value for shareholders.  A company can meet operating and financial obligations only if it generates enough income in excess of its expenses.

The bases for calculating profitability ratios are revenue, operating costs, assets, and equity.

Profitability ratios are grouped into two classes: Margin Ratios and Return Ratios.

Explanation:

The Margin Ratios measure the company's ability to turn sales into a profit.  They include Gross Margin Ratio and Net Income Ratio.  They are expressed as a percentage of Sales or Cost of Goods Sold.

Return Ratios measure a firm's ability to add value for shareholders.  They include Return on Assets and Return on Equity, among other variants.

You might be interested in
A mixed-market economy is one in which
GalinKa [24]

Answer:

both the government control and the private sector exist

Explanation:

The mixed-market economies are economies that have primarily developed from the command economies, but have implemented market economy elements as well. In this type of economies we have a situation where the governments still have a very important role in the economy, while in the same time, the private businesses are also thriving. The government is usually in control of the most important and abundant natural resources, thus providing security for the country's people and economy. The private businesses are able to operate freely, and they collaborate with the government as a business partner., with both of them being dependent on each other.

8 0
3 years ago
How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years,
Shtirlitz [24]

Answer:

PV = $27,263.15

It will be needed to deposit the lump sum of $27,263.15

Explanation:

The question is asking for how much will you need to deposit in a lump sum  today to withdraw for seven years the sum of $5,600 with an interest rate of 10%

In other words it is asking us for the preset value of an annuity of $5,600 with interest of 10%

Using the present value of an annuity formula of $1 we can solve for the present value of that annuity, which is the amount needed to generate this annuity

C * \frac{1-(1+r)^{-time} }{rate}= PV\\

We post our knows value and solve it:

5,600 * \frac{1-(1+0.10)^{-7} }{0.10}= PV\\

PV = $27,263.15

8 0
3 years ago
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal pl
Zigmanuir [339]

Complete Question:

The Company has the following transactions related to its top-selling Mongoose mountain bike for the month of March. The Company uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost

March 1 Beginning inventory 20 $230 $4,600

March 5 Sale ($360 each) 15

March 9 Purchase 10 250 2,500

March 17 Sale ($410 each) 8

March 22 Purchase 10 260 2,600

March 27 Sale ($435 each) 12

March 30 Purchase 8 280 2,240

For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

Required:

a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes

from beginning inventory and eight bikes from the March 22 purchase.

b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)

e. Calculate sales revenue and gross profit under each of the four methods.

Answer:

The Company

Ending Inventory:

a. Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase  2 *  $250 =  500

March 22 purchase 2 * $260 = 520

March 30   Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

Cost of goods sold = Cost of goods available for sale Minus Ending Inventory

= $11,940 - $3,490

= $8,450

b. FIFO:

March 22   Purchase     5   260     1,300

March 30   Purchase     8   280    2,240

Ending Inventory          13           $3,540

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $3,540

= $8,400

c. LIFO:

Ending Inventory:

March 1  Inventory     13    $230         $2,990

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $2,990

= $8,950

d) Weighted -Average Cost:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

                                     Specific          FIFO         LIFO         Weighted

                               Identification                                           Average

Sales                           $13,900       $13,900      $13,900       $13,900.00

Cost of goods sold        8,450           8,400         8,950         $8,706.25

Gross profit                 $5,450         $5,500      $4,950          $5,193.75

Explanation:

Dat and Calculations:

Shop uses periodic inventory system

Date           Transactions               Units      Unit Cost    Total Cost   Total

March 1      Beginning inventory     20          $230         $4,600       Sales

March 5     Sale ($360 each)                   15   $360                          $5,400

March 9     Purchase                       10            250           2,500

March 17    Sale ($410 each)                   8     $410                           $3,280

March 22   Purchase                      10            260           2,600

March 27   Sale ($435 each)                12     $435                         $5,220

March 30   Purchase                      8             280           2,240

Total Goods available for sale     48   35                     $11,940   $13,900

Ending Inventory = 13 (48 - 35)

Weighted average cost = Cost of goods available for sale/Units of Goods available for sale

= $11,940/48 = $248.75

Specific Identification:

March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1

March 17 sale 8 consists of bikes from the March 9 purchase  Bal  = 2

March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal  = 2

Ending Inventory:

Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase  2 *  $250 =  500

March 22 purchase 2 * $260 = 520

March 30   Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

FIFO:

March 22   Purchase     5   260     1,300

March 30   Purchase     8   280    2,240

Ending Inventory          13           $3,540

LIFO:

March 1      Beginning inventory     13    $230         $2,990

Weighted-Average Costs:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

5 0
2 years ago
A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ s
Ksju [112]

Answer:

The answer is D, Execution System.

Explanation:

Supply chain Execution system is a system that ensures the delivery of materials or orders to the concerned departments. So in this example, when a company is having difficulty with timely delivery of parts to its manufacturing plants, the company should implement the Supply Chain Execution System in order to ensure the timely delivery of the material to the manufacturing plant of the company.

8 0
2 years ago
Available"" (as in ""measurable and available"") means 1. Available to finance expenditures of the current period 2. Subject to
MAVERICK [17]

Answer:

1. Available to finance expenditure of the current period

Explanation:

Government Accounting is concerned with propriety i.e judicious use of resources and allocation of government funds so as to ensure efficient performance of government entities.

Efficiency refers to input/output ratio whereas effectiveness refers to achievement of government programs.

Government requires funds for allocation to various projects which require sanctioning by an authority.

In the same context, the concept of "available" refers to the availability of funds to meet the current period expenditure and liabilities.

4 0
3 years ago
Other questions:
  • Look at the table price elasticity. what is the price elasticity of demand (using the midpoint formula) between $2.50 and $2.25?
    11·1 answer
  • homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-fre
    6·1 answer
  • The original marketing strategy of McDonald's in BrazilSelect one:a. promoted a beer with lunch.b. completely changed the menu t
    8·1 answer
  • Brent, a waiter at a restaurant, always provides good service to the customers. He believes that his supervisor is fair and hope
    13·1 answer
  • Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable fut
    11·1 answer
  • The unadjusted trial balance for Sheffield Corp. is shown below.
    5·1 answer
  • You purchased XYZ stock at $50 per share. The stock is currently selling at $80. You expect the stock price to go up, but not 10
    11·1 answer
  • A stock just paid an annual dividend of $1.8. The dividend is expected to grow by 8% per year for the next 3 years. The growth r
    7·1 answer
  • Ruby enjoys working with other people. She has excellent leadership, interpersonal, and communication skills that she would like
    10·1 answer
  • Poka Yoke uses a number of devices to mistake-proof a process. Which of the following would NOT be included?A)Fixture templatesB
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!