Answer:
The 1st ratio examines debt by observing at the company's balance sheet, whereas the other two ratios examine debt by observing at the company's income statement. Thus, debt-to-total-assets ratio processes the %age of assets delivered by debt in order to fund total assets. The computed equation will be: (Total long term debt + Total short term debt) / Total assets). The high debt ratios that overdo the business average might create it expensive for a company to borrow the extra funds without initial raising for more equity. The period’s interest received ratio processes the degree to which the income can fall before the company is incapable to meet its yearly interest expense expenditures. However, the computed equation is EBIT / total interest payable: EBIT is used as the numerator as it is funded with pretax dollars. The company’s capability to pay will not be affected by the taxes. The EBITDA analysis ratio is EBITDA / total interest: This proportion is more comprehensive than the TIE proportion because it identifies that depreciation and payback are not expenses, so these aggregates are accessible to service debt, and lease expenses and principal refunds are fixed expenses.
Answer:
Net cash provided by financing activities $315,000
Explanation:
The computation of the net cash provided or used by financing activities is shown below:
Issuance of common stock $275,000
Issuance of bonds payable $469,000
Less: Payment of dividends $380,000
Less: Purchase of treasury stock $49,000
Net cash provided by financing activities $315,000
Answer:
The requirement of the question is as below:
How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)
What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)
Alan deposit on January 1 is $ 58,802.39
Interest for four years is $21,197.61
Explanation:
The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:
PV=FV*(1+r)^-n
PV is the present value
FV is the worth of the investment in 4 years from now which is $80,000
r is the rate of return of 8%
n is the number of years of investment which is 4 years
PV=$80,000*(1+8%)^-4
PV=$80,0008(1+0.08)^-4
PV=$80,000*(1.08)^-4
PV =$ 58,802.39
interest for four years=FV-PV
interest for four years=$80,000-$ 58,802.39
=$21,197.61
Answer:
$284,000
Explanation:
Movements in the retained earnings account are as a result of the payment of dividend and the addition of the income or loss for the year.
Given that
Baxter generated revenues = $40,000
incurred expenses = $24,000
purchased equipment = $10,000 and
paid dividends = $4,000
Net income/(loss) = $40,000 - $24,000
= $16,000
Retained Earnings at September 30, 2012
= $272,000 + $16,000 - $4,000
= $284,000
Base on the study of finding, the rate of the percent of regular army soldiers currently serving in the infantry units is about twenty percent. The results has showed that their are approximately twenty percent of regular army soldiers who are serving in the infantry units.
