<span>sweat equity, the patent lawyer is doing for a project or enterprise in the form of effort to work for the ownership interest in a business that will increase in value it is a preferred mode of building equity for entrepreneurs who do have much money in their start-up ventures since they may be unable to provide as much financial capital to their business</span>
Answer:
C) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.
Explanation:
July 1, prepaid rent fro 6 months
Dr Prepaid rent 24,000
Cr Cash
July 31, adjusting entry to record rent expense
Dr Rent expense 4,000
Cr Prepaid rent 4,000
total prepaid rent = 24,000 for six months
after one month, 24,000 / 6 = 4,000 must be recorded as rent expense and prepaid rent must be credited.
Answer:
True
Explanation:
Total debt to total capital ratio, also known as D/C ratio is a ratio that measures a company's capital structure, financial solvency, and degree of leverage, at a particular point in time.
While the Times Interest Earned (TIE) is a ratio which measures the ability of an organization to pay its debt obligations.
So A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength and hence would have a lower ability to pay its debt obligations one which the TIE ratio measures.
Section A = 22,500 seats
section B = 14,900 seats
section C = 7,600 seats
Answer:
1. It has worsened
2. Yes (refer details below)
3. Refer details below
Explanation:
1. Performance
The performance of the company over the last three years has worsened as indicated by declining sales and decreasing current ratios impacting profitability and liquidity of the company.
2. Concerns
One of the most important concern for the company is its declining sales. It shows that the products are not competitive. Current ratios indicates liquidity crisis since they are decreasing.
3. Recommendations
The company's turnover ratio is high, which may indicates payments are being received timely, and hence the co. should take advantage of that
Low inventory turnover, on the other hand, indicates weaker sales and declining demand for a company’s products which is corroborated by the declining sales trend, the co. must increase its sales, launch new products, advertise aggressively.
