I'd say your answer would be the interest rate so A
Answer:
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Answer: Company X could lose more business before it will begin experiencing financial difficulties when it is being compared to company Y
Explanation:
Margin of safety ratio simply helps to understand the extent to which there'll be drop in sales before a company will begins to make a loss.
Since the margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%, it means that Company X could lose more business before it begins experiencing financial difficulties when it is compared to company Y.
Answer:
Total Assets on the Balance Sheet is $241,236.
Explanation:
Total Assets would include the total from the Non Current Assets Section and the total from the Current Assets Section of the Balance sheet.
Here is an extract of the Assets Section of the Balance Sheet :
Assets
<u>Non-Current Assets</u>
Equipment $54,928
Total Non-Current Assets $54,928
<u>Current Assets</u>
Inventories $25,896
Supplies $5,592
Accounts receivable $81,416
Cash $73,404
Total Current Assets $186,308
Total Assets $241,236
Answer:
A. $80,000
Explanation:
The computation of the gates investment is shown below:
= Net income × total percentage
where,
Net income = $200,000
And, the total percentage = Acquiring percentage + additional percentage
= 15% + 25%
= 40%
Now put these values to the above formula
So, the value would equal to
= $200,000 × 40%
= $80,000
The dividend part should not impact the investment. So, we do not consider it