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Vladimir [108]
3 years ago
8

Multiple Choice Question The following selected information pertains to Wilson Company. Current liabilities: $100; long-term lia

bilities: $150; contributed capital: $120; retained earnings: $50; accumulated other comprehensive income: $20. The company's debt to equity ratio (rounded to two digits after the decimal point) is
Business
1 answer:
zzz [600]3 years ago
5 0

Answer:

The debt to equity ratio is 1.32

Explanation:

The computation of the debt to equity ratio is shown below;

Debt to equity ratio is

= Debt ÷ equity

where, Debt is long term + current liabilities

And, the equity is contributed capital + retained earnings + other incomes

= ($100 + $150) ÷ ($120 + $50 + $20)

= $250 ÷ $190

= 1.32

Hence, the debt to equity ratio is 1.32

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Your family should call your local Better Business Bureau. Hope this helps.
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3 years ago
A business impact analysis (BIA) identifies threats, vulnerabilities, and potential attacks to determine what controls can prote
Anna11 [10]

Answer:

The correct answer is: False.

Explanation:

To begin with, the name of <em>"Business Impact Analysis"</em> or BIA, in the field of business, refers to the strategy or process that focus on the analysis of the organization when an emergency happens and to see how that surprise event has affected the company's operations. So that is why that this method determines and evaluates all the potential effects that the disaster had on the structure of the organization and how that impact could be resolve by the managers and the whole crew of employees.

7 0
3 years ago
g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so
VikaD [51]

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

  1. the company has excess cash and it doesn't have any possible investments on hand
  2. the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

  • the company has excess cash and the board and upper management believe that the stock price is too low.

(c) pay down some of its debt;

  • the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

  • the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

  • the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

5 0
3 years ago
Suppose the reserve requirement is 15​%. What is the effect on total checkable deposits in the economy if bank reserves increase
Alekssandra [29.7K]

Answer:

Total Check-able deposits to increase by $333.5 billion

Explanation:

If the bank reserves increase by $50 billion, the total check-able deposits will increase by 50 * the credit multiplier.

Credit multiplier is the measure by which an increase in total money supply can be measured relative to an increase in banks' excess reserves.

Credit Multiplier = 1 / reserve ratio

Credit Multiplier = 1 / 0.15 = 6.67

So an increase in excess reserves of 50 billion will have a net effect of 50 * 6.67 = $333.5 billion. This will be the net increase in total check-able deposits or the money supply.

Hope that helps.

6 0
3 years ago
Expand Your Critical Thinking 24-2 (Part Level Submission)Ana Carillo and Associates is a medium-sized company located near a la
Natasha_Volkova [10]

Answer:

total budgeted costs = $141,570

budgeted production = 1,000 units

standard rate = $141,570 / 1,000 = $141.57 per unit

total actual costs = $135,810

actual production = 850 units

actual rate = $135,810 / 850 = $159.78 per unit

  1. total fixed overhead variance = actual overhead costs - budgeted overhead costs =  $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.
  2. controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).
  3. volume variance = (standard activity - actual activity) x standard rate = (1,000 - 850) x $141.57 = 150 x $141.57 = $21,235.50 unfavorable. Less units where produced than budgeted, that is why the variance is unfavorable.

5 0
3 years ago
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