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just olya [345]
3 years ago
13

The following balance sheet information is provided for San Juan Company for 2014: Assets Cash $ 6,650 Accounts receivable 7,950

Inventory 11,550 Prepaid expenses 2,500 Plant and equipment, net of depreciation 18,400 Land 13,000 Total assets $ 60,050 Liabilities and Stockholders' Equity Accounts payable $ 3,150 Salaries payable 7,640 Bonds payable (Due in 2020) 15,400 Common stock, no par 18,600 Retained earnings 15,260 Total liabilities and stockholders' equity $ 60,050 What is the company's debt to equity ratio? (Round your final answer to 2 decimal places.) Multiple Choice 129.29% 45.48% 77.35% 31.87%
Business
1 answer:
lawyer [7]3 years ago
5 0

Answer: option c

Explanation: Debt equity ratio is ratio of the total amount of debt due on a company to the total amount of equity invested in it . It is generally used to evaluate the solvency of the company. It is computed as follows :-

=\:\frac{debt}{equity}

=\:\frac{accounts\:payable+salary\:payable\:+bonds\:payable}{common\:stock\:+retained earnings}

=\:\frac{3150\:+\:7640\:+\:15,400}{18,600\:+15,260}

      = 77.35%

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Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

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Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

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Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

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Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0
4 years ago
Which promotion mix element stimulates purchase directly through an incentive to buy, such as a coupon or rebate?
Darina [25.2K]

Sales promotion mix element stimulates purchase directly through an incentive to buy, such as a coupon or rebate.

<h3>How does sales promotion work?</h3>
  • Sales promotion is one of the components of the promotional mix.
  • Sales promotion is a marketing strategy where a company would utilize brief-term campaigns to generate interest and demand for a product, service, or other offerings.
  • Advertising, personal selling, direct marketing, and publicity/public relations make up the bulk of the promotional mix.
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3 0
2 years ago
All of the following are conducive to economic growth except
zysi [14]

Answer:

B. an unfavorable balance of trade and payments

Explanation:

  • The BOP or the balance of trade is defined as the net gains or net exports that make the balance of payments and is said to be favorable when the country export more and imports less and is a positive change.
  • It is said to be negative when the country imports more and exports less thus unfavorable in terms of the trade and payments.
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6 0
3 years ago
A city's potential for growth or its susceptibility to decline is determined by a set of economic activities that the city provi
lapo4ka [179]

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B

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Economic base are businesses that generate employment in a community or a geographical area.

Economic base analysis is a theory that posits that activities in an area divide into two categories:

1) Basic industries are those exporting from the region and bringing wealth from outside.

2)Nonbasic industries support basic industries.

The basic industries of a region are identified by comparing employment in the region to national norms.

7 0
3 years ago
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Answer:

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