Answer:
Debt Ratio = Total Debt Total/ Assets
Equity Multiplier = Assets/Equity
<h2>
Lots of Debt</h2>
Debt Ratio
= 32.5/34.25
= 0.95
Equity Multiplier
= 34.25/2
= 17.13
<h2>
Lots of Equity </h2>
Debt Ratio
= 2/34.25
= 0.06
Equity Multiplier
= 34.25/32.25
= 1.06
Answer:
Gross profit= $54,700
Explanation:
Giving the following information:
Purchases $37,000
Merchandise inventory, September 1 6,100
Merchandise inventory, September 30 6,800
Sales 91,000
<u>First, we need to calculate the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 6,100 + 37,000 - 6,800
COGS= $36,300
<u>Now, the gross profit:</u>
Gross profit= sales - COGS
Gross profit= 91,000 - 36,300
Gross profit= $54,700
Answer:
You can withdraw by automatic electronic transfer, check, ATM card or debit card. There are many ways these days to withdraw money from your accounts. Let's go over each.
Explanation:
Answer:
Explanation:
Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this
where
Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)
Answer:
True
Explanation:
Cash flow is a measure of the available cash and cash equivalent for operation in a business year.It has to be positive to generate value for investors and also to remain in business.
Profit is defined as the excess of income over expenses.
We need to know that profit are calculated on accrual basis, which means that income are recorded when earned and expenses recorded when incurred. In a situation where most sales are on account , i.e no instant cash payment and most expenses are on cash basis, this could cause a deficit in the cash flow volume. The level of inventory held could also lead to a negative cash flow despite a profitable operation if it is too high.
