Answer and Explanation:
The balance sheet is shown below:-
The computation of note payable is below:-
Notes Payable = $1,198,000 - $649,600
= $548,400
Total notes payable by the company are$1,198,000, of which $649,600 is common stock issue and $548,400 is cash liquidate.
Windsor Company
Partial Balance sheet
December 31, 2020
Particulars Amount
Current Liabilities:
Notes Payable $548,400
Long term Debt:
Notes Payable $649,600
Answer:
Explanation:
Dividends through year 1 to 5:
D1 = 2.15*(1+0.30)^1 = 2.80
D2 = 2.15*(1+0.30)^2 = 3.63
D3 = 2.15*(1+0.30)^2 * (1+0.18)^1 = 4.29
D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58
D5 = 2.15*(1+0.30)^2 * (1+0.18)^3 = 12.86
PV (D1) = 2.80
PV (D2) = 3.63 *PVIF = 3.63 * 0.87719 = 3.19
PV (D3) = 4.29 * 0.76947 = 3.30
PV (D4) = 8.58 * 0.67497 = 5.79
PV (D5) = 12.86 * 0.59208 = 7.62
Total of all PV's = 22.69
Dividends that were paid last year = $200
Retained earnings = $522
Net Income = Retained earnings + Dividends paid = 200+522 =722
Tax rate was 38%.
Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52
Interest expense= 624
Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52
Earnings before interest and tax (EBIT) = 1,788.52
Answer: No
Explanation: D/E is a solvency ratio. Liquidity ratios are quick and current ratios.
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
