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3 years ago

Net worth is the difference between your assets and your liabilities

Business

1 answer:

kogti [31]3 years ago

3 0

Answer:

The statement is true as the net worth is equal to assets minus liabilities.

Explanation:

Net worth is the actual worth of the company in the market which compared with the assets and the liabilities which the business has. It is that amount by which the assets exceed the liabilities.

In other words, it is the difference among what is own by the business that is assets and what you owe that is liabilities. And if assets exceed liabilities, then the business have a positive net worth. If liabilities exceed assets, then the business have a negative net worth.

It basically provides a snapshot of the financial situation or condition of the business at a point of time.

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Since its organization in January of 2016, Mars Corp began with the issuance of 15,000 shares of $5 par, cumulative, 8% preferre

igomit [66]

Answer:

D) 3 years' worth of dividends will be paid to preferred shareholders prior to paying anything to common shareholders.

Explanation:

Shareholders are the individuals or institutions that hold the stock of a company making the owners of the business. Shareholders can either be common shareholders or preferred shareholders. Common shareholders are more prevalent and have voting rights in matters concerning the company.

Preferred shareholders hold preferred stock. They are rare and have no voting rights in the way the organization is managed. Preferred shareholders are entitled to a fixed amount of dividend every year. Dividends to preferred shareholders have to be paid first before common shareholders are paid out. Usually, common stockholders will be last to paid last in the event of dividends payouts or in times of liquidation.

3 0

3 years ago

William is thinking about raising funding for his new business. To get advice on how to proceed, he stopped by his local Small B

MakcuM [25]

Answer:

business plan

Explanation:

A business plan is a written overview of the future of your business, a document that shows you what to do and how to do it.

When you write down a section outlining your business strategy on the back of an envelope, you've written a plan or at least one's gem.

Business plans are strategic intrinsically.

5 0

3 years ago

If fixed costs are $821,000 and variable costs are 63% of sales, what is the break-even point in sales dollars

Nezavi [6.7K]

Answer:

Break-even point (dollars)= $2,218,919

Explanation:

Giving the following information:

Fixed costs= $821,000

Variable costs rate= 63%

If the variable cost rate is 63%, then the contribution margin rate is:

Contribution margin ratio= 1 - 0.63

Contribution margin ratio= 0.37

Now, the break-even point in sales revenue:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 821,000 / 0.37

Break-even point (dollars)= $2,218,919

5 0

3 years ago

Erkkila Incorporated reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is

Mashutka [201]

Answer:

27.79

Explanation:

According to the given situation, the computation of average fixed inspection cost per unit is shown below:-

Average fixed cost of inspection = Inspection cost ÷ Machine hous in a month

= $197,309 ÷ 7,100

= 27.79

Therefore for computing the average fixed inspection cost per unit we simply applied the above formula.

3 0

3 years ago

Calculating Residual Income

olga_2 [115]

Answer:

1) $2,500,000

2) $425,000

Explanation:

The Average Operating Assets is given using the formula

= (Beginning Operating Assets + Ending Operating Assets) ÷ 2

on substituting the values from the question, we get

⇒ Average Operating Assets = (2,700,000 + 2,300,000) ÷ 2

⇒ Average Operating Assets = 5,000,000 ÷ 2

⇒ Average Operating Assets = $2,500,000

The Residual Income is calculated as:

= Operating Income - (Minimum Rate of Return × Average Operating Assets)

on substituting the values from the question, we get

⇒ Residual Income = $800,000 – (15% × $2,500,000)

⇒ Residual Income = $800,000 - $375,000

⇒ Residual Income = $425,000

3 0

3 years ago