Which one of the following comparisons between debt and equity is correct?

The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $135,759 Common Stock $52,705

LiRa [457]

Answer:

The correct option is the third one,$250,687

Explanation:

The key to ascertaining is accounting equation which that assets equal capital plus liabilities.

This implies that by determining the capital and liabilities,total assets sorted out.

Common stock $52,705

*Retained earnings for the year $62,223

Total equity and retained earnings $114,928

total liabilities $135,759

Total equity and liabilities $250,687

Total assets=total equity and liabilities=$250,687

Retained earnings for the year=prior year retained earnings+net profit-dividends paid

prior year retained earnings $40,723

net profit is $36,500

dividends is $15,000

*retained earnings for the year=$40,723+$36,500-$15,000=$62223

8 0

3 years ago

If the margin of safety is $200,000, fixed expenses are $50,000 and sales revenue is $500,000, what are variable costs?

Setler79 [48]

Answer: $250,000

Explanation:

4 0

2 years ago

The debt-to-income (DTI) ratio of a borrower is used to compare to the borrower's gross monthly income.

ArbitrLikvidat [17]

Answer:

Answer is D. monthly living expenses (rent or mortgage, property tax, mortgage insurance, minimum credit card payments, and monthly loan payments)

Explanation:

Edge

5 0

3 years ago

Read 2 more answers

Which of the following is TRUE regarding a dead weight loss.

nikdorinn [45]

Answer:

I'm pretty sure the answer is A

8 0

3 years ago

Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to

slega [8]

Answer:

Contribution is sales revenue less variable cost. In multiple products environment, it is important that the producer have information about the performance of each product. This is useful for decision making purpose. See income statement below

Explanation:

An income statement showing contribution would suffice:

Royal Lawrence Company

Income statement

Weedban Greengrow Total

$ $ $

Sales (sp/unit × unit) 315,000 900,000 1,215,000

Variable cost (Vc/unit × units) (98,000) (325,000) (423,000)

Contribution 217,000 575,000 792,000

Specific fixed cost (132,000) (37,000) (169,000)

Product profit 85,000 538,000 623,000

Common Fixed cost (100,000)

Total profit 523,000 

4 0

3 years ago

Read 2 more answers