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docker41 [41]
3 years ago
8

Debt Management Ratios Tiggie’s Dog Toys, Inc. reported a debt-to-equity ratio of 1.75 times at the end of 2015. If the firm’s t

otal debt at year-end was $25 million, how much equity does Tiggie’s have on its balance sheet?
Business
1 answer:
mezya [45]3 years ago
6 0

Answer:

Equity Tiggie’s has on its balance sheet: $14,285,714 (round up $14,29 million)

Explanation:

The debt-to-equity (D/E) ratio compares a company’s total debt to its total equity and can be used to evaluate how much leverage a company is using.

Debt-to-equity ratio is calculated by using formula:

Debt-to-equity ratio = Total debt (or liabilities)/Total equity

From the formula, Total equity = Total debt/Debt-to-equity ratio

In Tiggie’s Dog Toys, Inc., debt-to-equity ratio of 1.75 times and total debt was $25 million at the end of 2015.

Total equity = $25,000,000/1.75 = $14,285,714 (round up $14,29 million)

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4 years ago
Decorte Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
Airida [17]

Answer:

$94.10 per unit

Explanation:

Total direct labor-hours 10,000

Total fixed manufacturing overhead cost $33,000

Variable manufacturing overhead per direct labor-hour $2.50

Job K332:

Number of units in the job 70

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total variable overhead = $2.50 x 140 = $350

prorated fixed overhead = (total fixed overhead / total direct labor hours) x direct labor hours used = ($33,000 / 10,000) x 140 = $462

total product cost = direct labor + direct materials + variable overhead + prorated fixed overhead = $5,320 + $455 + $350 + $462 = $6,587

product cost per unit = $6,587 / 70 units = $94.10 per unit

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3 years ago
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6 0
3 years ago
Jasmine finished writing a news release about her company's new product. She intends to e-mail the message to local television a
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Public Relations

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3 years ago
What are loans to a company or government for a set amount of.time. they earn interest and are considered low-risk investments.
irga5000 [103]

Answer:

b) bonds

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Bonds are considered a low-risk investment option. Governments hardly default on their bond obligations. Companies that issue bonds to the public regulated and are less likely to default on payments.

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3 years ago
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