Answer:
Equipment and vehicles.
Explanation:
A fixed asset is a long term asset that has a useful life of over one year, it is owned and used by a company to achieve its stated objectives. They are bought to generate income, and they are not meant to sell and not easily convertible to cash. Are categorized under noncurrent assets in the balance sheet.
Fixed assets have the following characteristics:
-They exist physically and, thus, are tangible assets.
-They are owned and used by the company in its normal operations.
-They are not offered by sale as part of normal operations.
Some examples are equipment, machinery, buildings, and land.
Answer:
True
Explanation:
Current and Quick ratio shows the liquidity position of the company. It shows that how much assets are available to company to pay off its liabilities if it becomes due in short period of time. High current and quick ratio make the company strong and it will have enough asset to deal with its obligation than with low current and quick ratio.
What ???????????? I’m confused
Answer:
5.68%
Explanation:
The green giant has a 4% profit ratio
= 4/100
= 0.04
The dividend payout ratio is 30%
= 30/100
= 0.3
The total assets turnover is 1.2 times
The equity multiplier is 1.6
The first step is to calculate the return on equity
ROE= Profit margin×Total assets turnover×Equity multiplier
= 0.04×1.2×1.6
= 0.0768 or 7.68%
The next step is to calculate the Plowback ratio
b = 1-dividend payout ratio
b = 1-0.3
b = 0.7
Therefore, the sustainable growth rate can be calculated as follows
= ROE×b/(1-(ROE×b)
= 0.0768×0.7/(1-(0.0768×0.7)
= 0.05376/(1-0.05376)
= 0.05376/0.94624
= 0.05681
= 5.68%
Hence the sustainable rate of growth is 5.68%
