Answer:
a.67.9%.
Explanation:
Debt to Total Assets Ratio = Total Liabilities / Total Assets x 100
<em>Total Liabilities = $95,000,000
</em>
<em>Total Assets = $140,000,000
</em>
Debt to Total Assets Ratio = $95,000,000 / $140,000,000 x 100
Debt to Total Assets Ratio = 0.679 x 100
or
Debt to Total Assets Ratio = 67.9%
Hence, The Assets of Marker Co. are 67.9% funded by creditors.
To calculate free cash flow, locate the income statement and balance sheet. Start with net income and add back charges for depreciation and amortization. Make an additional adjustment for changes in working capital, which is done by subtracting current liabilities from current assets. Then subtract capital expenditure (or spending on plants and equipment)
Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
