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ivanzaharov [21]
3 years ago
5

Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.

Business
1 answer:
Masteriza [31]3 years ago
8 0

Answer:

A

Explanation:

Long term debt is debt that has a maturity that is longer than a year.

The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.

firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.

use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand

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Coach Sieb Has a treadmill desk. Walking on the treadmill will break down her triglyceride Levels 90% faster what is the percent
Ilia_Sergeevich [38]

Answer:

0%

Explanation:

Base on the scenario been described in the question, where we saw coach Seib has 90% faster breaking her triglyceride Levels while working, when sitting, she has a 0% of breaking her triglyceride Levels because no movement, there will be no breakdown in the triglyceride Levels

3 0
3 years ago
The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28 were $1,100 and $475, respect
Hitman42 [59]

Answer:

$575

Explanation:

Given that,

Opening office supplies = $1,100

Closing office supplies = $475

Office supplies expense for the month = $1,200

Opening stock + Purchases - Closing stock = Consumption

$1,100 + Purchases - $475 = $1,200

$625 + Purchases = $1,200

Purchases = $1,200 - $625

                  = $575

Therefore, the amount of office supplies was purchased during February is $575.

7 0
3 years ago
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales w
motikmotik

Answer: Please see answer in explanation column

Explanation:

a)Account titles and explanation                  Debit                         Credit

Warranty Expense                                       $30,000

Warranty Payable                                                                           $30,000    

Calculation :

2 % x $1,500,000 =$30,000

b) Account titles and explanation                  Debit                         Credit

Warranty Provision                                           $445

Materials                                                                                             $325

Salaries Payable                                                                                  $120

7 0
3 years ago
C Qu. 21 Sea Island Company is trying to decide which... Sea Island Company is trying to decide which one of two alternatives it
Nataliya [291]

Answer:

The differential revenue for this decision is $95000

Explanation:

Differential Revenue: In differential revenue it shows a difference between two projects revenues. Irrespective of whatever information is given in the question.

It is computed to check that how much increment or decrements is done as compare to previous year, or between projects.

So,

Differential revenue = Alternative B Projected Revenue - Alternative A Projected Revenue

= $310,000 - $215,000

= $95,000

Hence, the differential revenue for this decision is $95000

3 0
3 years ago
Miracle Company purchased treasury stock with a cost of $15,000 during 2013. During the year, the company paid dividends of $20,
kodGreya [7K]

Answer:

The correct answer is option (b) $831,000 net cash inflow.

Explanation:

Solution

Recall that:

Company miracle bought stock treasury with a cost of = $15,000

Dividends paid =  $20,000

Bond issued =$ 866,000

Now,

The cash flow from financing activities is calculated as follows:

Bonds payable -Purchased treasury stock - Dividend paid

$866,000 - $15,000-$20,000

= $831,000

Therefore, The net cash flow is $831,000

6 0
3 years ago
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