Hello!
The formula is
Debt radio=(current liabilities+noncurrent liabilities)÷total assets
0.42=( x+20000)÷70000
Solve for x
0.42×70000=x+20000
X=0.42×70000-20000
X=9400....current liabilities which is the answer.
Good luck!
Answer: a. Residual income, like ROI, can encourage a short run orientation
Explanation:
Residual incomes presents the same problem as ROI measurement, The problem of myopic behaviour or short run orientation
The manager may cut expenses like advertising expenses, maintenance expenses , training expenses when being evaluated under residual income or ROI to reflect a favourable residual income or return on investments, The problem Managers being short run orientated is not eliminated or minimized by change methods between ROI and Residual income.
Answer:
Intangibles = $1150,000 and Down Home Foods will record Goodwill equal to $575,000
Explanation:
A) Value on Intangible assets (Goodwill+Patent) = Total Assets - Tangible Assets
=$7,500,000 - $6,350,000 = $1150,000
Intangibles = $1150,000
B) Down Home Foods will record Goodwill in its books.
Value of Goodwill = Purchase Consideration - (Total Tangible Assets + Market Value of Patents)
= $7,500,000 - ($6,350,000+$575,000) = $575000
Down Home Foods will record Goodwill equal to $575,000
If you pay the balance on your credit card each month, the annual fee is the most important factor to consider when selecting a credit card. This is because all the other fees listed only occur if you carry over your balance.
Answer:
Depreciation for year 3 = $115518
BV = $57798
Explanation:
The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.
In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:
33.33% for the first year
44.45% 2nd year
14.81% 3rd year
7.41% 4th year
We have been asked to determine 3rd years' depreciation and book value, determined as follows:
Depreciation year 1: $780000 33.33% = $259974
Depreciation year 2: $780000 44.45% = $346710
Depreciation year 3: $780000 14.81% = $115518
So the depreciation for year 3 = $115518
The book value is calculated as follows:
<em>Book value = cost - accumulated depreciation</em>
BV = $780000 - $722202
BV = $57798
