Answer:
The debt-to-equity ratio of the company is 0.2
Explanation:
The formula to compute the debt to equity ratio is as:
Debt to equity ratio = Debt / Equity
Where
Debt is total liabilities which amounts to $700,000
Equity is total equity which amounts to $3,500,000
Putting the values in the above formula:
= $700,000 / $3,500,000
= 0.2
Debt to equity ratio of the company is 0.2
<span>Business/Financial manager </span>assumes responsibility for monitoring how the contractor is doing in terms of cost, schedule, and technical performance
Before a company start its operation for the year, the executives of that company will determine the budget that seem appropriate for all fo the operations.
The duty of business/financial manager is to make sure that the cost of operations do not exceed that pre-determined budget
20% down will be $50,000 so the balance will be $200,000 to take out a mortgage for. The higher the down payment the lower the mortgage required and lower payments would ensue also. Also, once one has a mortgage it ie wise to pay it by the week to reduce the interest. Over time this practice makes a difference.
Answer:
The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.
Explanation:
Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.
<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>
Answer:
Retained earnings on the December 31, 2019: $253,000
Explanation:
Ending balance in retained earnings is calculated by using following formula:
Ending balance in retained earnings = Beginning balance in retained earnings + Net income - Cash dividends - Stock dividends
Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. Beginning balance in retained earnings at January 01, 2019 is $210,000
Net income = Revenues - Expenses = $410,000 - $355,000 = $55,000
Ending balance in retained earnings = $210,000 + $55,000 - $12,000 = $253,000
