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Zolol [24]
3 years ago
14

Assume the following data for Cable Corporation and Multi-Media Inc.

Business
1 answer:
Tatiana [17]3 years ago
4 0

Answer:

a-1 Cable Corporation 13.05

Multi-media Inc. 33.1%

a-2 Multi-Media Inc.

2. Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

Net income/Total assets 7.76% 14.51%

Sales/Total assets .79 times 2.80 times

Debt/Total assets 40.55% 56.17%

Explanation:

a-1. Computation to determine the return on stockholders’ equity for both firms.

CABLE CORPORATION

Using this formula

Return on Stockholders’ Equity= Net Income / Stockholder’s equity

Let plug in the formula

Return on Stockholders’ Equity=$31,200 / 239,000

Return on Stockholders’ Equity= 0.1305*100

Return on Stockholders’ Equity=13.05%

MULTI-MEDIA INC.

Return on Stockholders’ Equity=$140,000 / 423,000

Return on Stockholders’ Equity= 33.1%

a-2. Based on the above calculation the firm that has the higher return is MULTI-MEDIA INC.

b. Computation for the following additional ratios for both firms.

Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

($31,200/317,000=9.84%)

($140,000/2,700,000=5.19%)

Net income/Total assets 7.76% 14.51%

($31,200/402,000=7.76%)

($140,000/965,000=14.51%)

Sales/Total assets .79 times 2.80 times

(317,000/402,000=.79 times

(2,700,000/965,000=2.80 times)

Debt/Total assets 40.55% 56.17%

(163,000/402,000=40.55%)

( 542,000/965,000=56.17%)

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Answer:

<u>Issuance - January 1, 2017</u>

Cash $16,000 (debit)

Note Payable $16,000 (credit)

<u>December 31, 2017</u>

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

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<u>December 31, 2018</u>

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<u>December 31, 2019</u>

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

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Interest Expense $214.87 (debit)

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Explanation:

The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.

The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).

Using a Financial calculator, this can be determined as ;

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Principle Payment = $3,712.19

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Principle Payment = $3,897.80

Interest Payment = $614.39

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Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

<u>2019</u>

Principle Payment = $4,092.69

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Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

<u>2020</u>

Principle Payment = $4,297.32

Interest Payment = $214.87

Balance =  $0

Accounting Entries :

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

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Answer:

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1. Write a Project Description. At this step, you need to collect background information on your project to write the description. ...

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Explanation:

The feasibility report will look at how a certain proposal can work on a long-term basis or endure financial risks that may come. It is also helpful in recognizing potential cash flow. Another important purpose is that it helps planners focus on the project and narrow down the possibilities.

A feasibility report is a document that assesses potential solutions to the business problem or opportunity and determines which of these are viable for further analysis.

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3 years ago
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The cash paid is therefore the amount of $14,300 which the balance reduced by.

Find out more on accounts receivables at brainly.com/question/24848903.

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