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mylen [45]
3 years ago
6

A company is obligated to pay its creditors $6,460 at the end of the year. If the value of the company's assets equals $6,304 at

that time, what is the value of shareholders' equity?
Business
1 answer:
rosijanka [135]3 years ago
3 0

Answer:

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

Explanation:

The shareholder's equity can be defined as the net value of a company. It basically is the amount that shareholders would receive if all the company's assets were liquidated and all of the company's debt also paid back. The shareholder's equity is usually found on the company's balance sheet and can be used as a financial measure to determine the company's financial status. The shareholder's equity is determined from subtracting the company's totals liabilities from its total assets. This can be expressed in the formula below;

E=A-L....equation 1

where;

E=shareholder's equity

A=total assets

L=total liabilities

The total assets represents everything that has some economic value to the company. A liability is an obligation to something or anything of economic value that the company owes. In our case, the company has an obligation to pay it's creditors $6,460 at the end of they year. This is a liability.

Use equation 1 above to solve;

E=unknown, to be determined

A=$6,304

L=$6,460

replacing;

E=(6,304-6,460)=-$156

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

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Shtirlitz [24]

Making hypothetical changes to data and observing the results exists option b. What-if analysis

<h3>What is What-if analysis?</h3>

What-If Analysis exists as the method of changing the values in cells to see how those differences will affect the outcome of formulas on the worksheet. Three types of What-If Analysis tools come with Excel: Scenarios, Goal Seek, and Data Tables. Scenarios and Data tables bear sets of input values and choose possible outcomes.

A what-if analysis or sensitivity analysis exists as a powerful decision-making tool that permits brands to understand what kind of business consequences can arise from modifying one or more variables.

A what-if analysis exists as a study an individual or company creates about a particular number of events where variables are adjusted to determine what the outputs would be. This approach stands typically implemented when there exists limited information from where to create a concise decision. Then, individuals control to outline all the possible outcomes to find out what their risks are.

Software like Microsoft Office Excel promotes the implementation of what-if analysis.

Hence, Making hypothetical changes to data and observing the results exists option b. What-if analysis.

To learn more about What-if analysis refer to:

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3 0
2 years ago
"during the 1980s, incompatible computer products resulted in ____."
PIT_PIT [208]
Excessive spare parts inventories, a lack of transferable employee skills, increased support costs.
7 0
3 years ago
EA3.
icang [17]

Answer:

3,000 units and 1,950 units

Explanation:

For computing the equivalent units of ending work in process for materials and conversion cost, first we have to determine the ending work in process units which is shown below:

Ending work in process units = Beginning inventory + units started - units completed and transferred

= 2,500 units + 18,000 units - 17,500 units

= 3,000 units

Now the equivalent units of ending work in process for materials would be

= 3,000 units × 100%

= 3,000 units

And, for conversion cost it would be

= 3,000 units × 65%

= 1,950 units

3 0
3 years ago
"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon
steposvetlana [31]

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

7 0
4 years ago
How did the looting of shops and malls will affect the businesses in the the terms of the relationships between social responsib
AVprozaik [17]

Businesses reduce their incentives that will lead to minimizing their ability to carry out their part for social responsibility of the triple bottom line.

The triple bottom line is an obligation on businesses to not just look for their profit but include and maintain a good balance between these factors:

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Businesses should follow the Triple bottom line:

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Thus, The correct answer would be - the ability of businesses to meet both their social responsibility and Triple bottom line is minimized and not as it was in normal conditions.

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4 0
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