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Lera25 [3.4K]
3 years ago
10

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equi

pment (net) $971,600 Liabilities: Current liabilities $140,000 Note payable, 6%, due in 15 years 694,000 Total liabilities $834,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $834,000 Common stock, $10 par (no change during year) 834,000 Retained earnings: Balance, beginning of year $890,000 Net income 386,000 $1,276,000 Preferred dividends $33,360 Common dividends 130,640 164,000 Balance, end of year 1,112,000 Total stockholders' equity $2,780,000 Sales $21,141,000 Interest expense $41,640 Assuming that total assets were $3,433,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Business
1 answer:
Alex Ar [27]3 years ago
8 0

Answer:

Ratio of fixed assets to long-term liabilities  = fixed assets / long term liabilities = $971,600 / $694,000 = 1.4

Ratio of liabilities to stockholders' equity = total liabilities / stockholders' equity = $834,000 / $2,780,000  = 0.3

Asset turnover = net sales / average total assets = $21,141,000 / [($3,614,000 + $3,433,000)/2] = 6  

Return on total assets = (net income + interest expense) / average total assets =  ($386,000 + $41,640) / [($3,614,000 + $3,433,000)/2] = 12.14%

Return on stockholders’ equity = net income / average stockholders' equity = $386,000 / [($2,780,000 + $2,558,000) = 14.46%

Return on common stockholders' equity = net income / average common stockholders' equity = $386,000 / [($1,946,000 + $1,724,000) = 21.04%

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___________ change introduces a new practice to an organization but one that is not new to the industry.
aksik [14]

The answer would be Innovative.

7 0
2 years ago
Discount Pizza retires its 7% bonds for $68,000 before their scheduled maturity. At the time, the bonds have a face amount of $7
snow_lady [41]

Answer:

The Journal entry and their narrations for recording the bonds retirement is shown below:-

Explanation:

The Journal entry is shown below:-

Bonds payable Dr,                                 $70,000  

Loss on redemption of bonds Dr,         $3,832

($68,000 - $64,168) 

            To Bond discount amortization           $5,832

($70,000 - $64,168)

             To Cash                                               $68,000

(Being bonds retirement is recorded)

So, for recording the early retirement of the bonds we debited the bonds payable and loss on redemption of bonds and credited the bond discount amortization and cash.

6 0
2 years ago
A trader is long EUR/USD at 1.2780 and has a target of 1.2790, but wants to limit losses to 1.2775. If they have entered an OCO
klemol [59]

If  an OCO order is entered, and EUR/USD trades below 1.2775 and above 1.2790, the resulting trade is to: Sell at 1.2790 and again at 1.2775.

<h3>What is OCO order?</h3>

OCO order which full meaning one cancels the other can be defined as a way in which  both limit order as well as stop order can be place at once.

Since the trade target is 1.2790 in which the stop loss or limit loss is 1.2775 in a situation were EUR/USD trades below the limit loss (1.2775) and above the target (1.2790) the trading result will be to sell at 1.2790 and then sell again at 1.2775.

Inconclusion  what would be the resulting trade is to:Sell at 1.2790 and again at 1.2775.

Learn more about OCO order here:brainly.com/question/14884905

5 0
2 years ago
Using the information below, calculate net cash flows from operating activities: Net income $ 120,000 Receive cash from issuing
suter [353]

Answer:

Net Cash Flow from Operating Activities is $145,000

Explanation:

Cash Flow from Operating Activities  

Net Income                                                 $120,000  

Adjustment for Non Cash Expenses  

Deprecation Expense                                 $30000

 

Working Capital Changes  

Increase in Accounts Receivables          $(10,000)

Increase in Accounts Payable                   $5000

 

Net Cash Flow from Operating Activities  $145,000  

Please note that:

  • Proceeds from issue of stock and payment of cash dividends relates to Financing Activities of Cash Flow Statement
  • Proceeds from sale of land and cash payment for purchase of equipment relates to Investing Activities of Cash Flow Statement

*figures in brackets represent negative values or cash outflows

5 0
3 years ago
Question
liraira [26]

Answer:

China's opportunity cost of producing 1 bottle of milk is equal to one batch of pumpkins.

Explanation:

Given that in 2 hours, China can produce 6 bottles of milk, and in 5 hours, it can produce 15 batches of pumpkins, to determine what is the country's opportunity cost of producing 1 bottle of milk (in terms of batches of pumpkins), the following calculation must be performed:

Milk = 6/2 = 3 per hour

Batches of pumpkins = 15/5 = 3 per hour

3/3 = 1

Therefore, China's opportunity cost of producing 1 bottle of milk is equal to 1 batch of pumpkins.

6 0
2 years ago
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