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4 years ago

7

g A company's most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equi

ty of $1.1 million. Its Debt to equity ratio is: Group of answer choices

1 answer:

ASHA 777 [7]4 years ago

6 0

Answer:

0.73

Explanation:

Debt to equity ratio is calculated as Total debt / Total equity

= $0.8 million / $1.1 million

= 0.73

Therefore, debt to equity ratio is 0.73

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Madison Company issued an interest-bearing note payable with a face amount of $10,800 and a stated interest rate of 8% to the Me

Aleks [24]

Answer:

$360

Explanation:

Interest Expense associated with the loan is the only operating cash flow. We need to calculate the interest expense first

As the note is issued on August 1, year 1, only 5 months has been passed on December 31, year 1, So we calculate the interest expense for only 5 months.

Interest Expense = Value of Note x Stated Interest rate x 5/12 = $10,800 x 8% x 5/12 = $360

It is assumed that the interest is paid on December 31, year 1.

4 0

4 years ago

A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appra

omeli [17]

Answer:

The multiple choices are as follows:

A: 82%

B: 83%

C: 84%

D: 85%

The correct option is C,84%

Explanation:

Loan-to-Value ratio(LTV)=loan amount/appraised value of the property

the price paid for the property was $565,000,out of which the buyer paid $94,600 from her pockets and borrowed the remainder,the remainder that was borrowed is computed thus:

amount borrowed=sales value-cash

=$565,000-$94,600=$470,400

The appraised value of the property is $560,000

LTV=$470,400/$560,000=0.84

The property loan to value ratio is 84%

7 0

3 years ago

Person A earns $100,000 per year, while person B earns $45,000 per year.

USPshnik [31]

A is correct, sales tax is the same for everybody in a state, no matter the income. Hope this helps!

3 0

3 years ago

Read 2 more answers

Mr. Baxter IV, would like to retire in 26 years. He would like to accumulate $1,500,000 at the time of retirement to live a cont

Vinvika [58]

Answer:

Monthly deposit= $840.74

Explanation:

Giving the following information:

Number of periods= 26*12= 312 months

Future Value= $1,500,000

Interste rate= 0.11/12= 0.0092

<u>To calculate the monthly deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,500,000*0.0092) / [(1.0092^312) - 1]

A= $840.74

6 0

4 years ago

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be repo

Andrews [41]

Answer:

b. A deduction from net income in determining cash flows from operating activities.

Explanation:

An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.

I hope I made it clear to you. If you still have any queries, feel free to ask me.

Thanks!

8 0

3 years ago