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inna [77]
3 years ago
6

Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indic

ation of the potential ability of the business to borrow additional funds on a long-term basis?
a. ratio of fixed assets to long-term liabilities
b. ratio of net sales to assets
c. number of days' sales in receivables
d. rate earned on stockholders' equity
Business
1 answer:
MariettaO [177]3 years ago
4 0

Answer:

a. ratio of fixed assets to long-term liabilities

Explanation:

As we know that

Margin of safety = Expected sales - break even sales

where,

Break even point = (Fixed expenses) ÷ (Profit volume Ratio)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

And,

Expected sales = Selling price per unit × Unit sales per month

So to borrow additional fund on a long term basis, the ratio of fixed assets to long-term liabilities is required

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Answer:

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An example of a company connecting with customers to add value in its package redesign strategy is Blank______.
kakasveta [241]

An example of a company connecting with customers in its package redesign strategy is creating a resealable package in response to consumer habits.

<h3>What is a redesign strategy?</h3>

A redesign strategy outlines which best practices should be employed first and which should be avoided in order to achieve the goals of the redesign endeavor.

Steps to a successful redesign of business processes:

  • Set precise objectives.
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  • A single workflow.
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  • Single-source information collection.

In order to build the most effective product, the design strategy applies the tactical thinking of a company strategy to the needs of the user. Through innovative applications geared toward the end user, the convergence of business strategy and design thinking accomplishes long-term objectives.

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5 0
2 years ago
Mill Co.’s allowance for credit losses was $100,000 at the end of Year 2 and $90,000 at the end of Year 1. For the year ended De
MatroZZZ [7]

Answer:

The amount worth $6,000 will be debited to the account in Year 2

Explanation:

When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000

The write off is computed as:

Write off = Beginning balance + Bad debt expense - Ending balance

= $90,000 + $16,000 - $100,000

= $106,000 - $100,000

= $6,000

Therefore, the amount of $6,000 is to be write off in Year 2

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lubasha [3.4K]

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