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Sedbober [7]
3 years ago
5

KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,4

00.
1. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations.)
2. How much is net working capital? (Do not round intermediate calculations.)
Business
1 answer:
sammy [17]3 years ago
3 0

Answer:

See below

Explanation:

1. Value of shareholder's equity is computed as

= Total assets - Current liabilities - long term debt

= [($4,200 + $24,400) - $3,750 - $8,400]

= $28,600 - $3,750 - $8,400

= $16,450

2. How much is net working capital

This is computed as;

= Total current asset - Total current liabilities

= $4,200 - $3,750

= $450

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Answer:

21.29%

Explanation:

The computation of the internal growth rate is shown below:

But before that we need to determine the following calculations

Debt equity ratio js

= debt ÷ equity

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So,

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Now

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= $8,600 + $5,160

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= 0.7

And, finally

The Internal growth rate is

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= (0.2507 × 0.7) ÷ [1 - (0.2507 × 0.7)]

= 21.29%

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g The Berwin Company established a master budget volume of 35,000 units for April. Actual overhead costs incurred amounted to $9
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