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3 years ago

Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.

Business

1 answer:

Firdavs [7]3 years ago

4 0

Answer:

A. Current Ratio= 2.63

B. Acid-Test Ratio = 1.44

C. Debt to Assets Ratio 51.16%

D. Return on assets 5.81%

Explanation:

a. Calculation forn Current Ratio

First step is to Calculate the Total Current Assets

Cash 40,000

Receivables 75,000

Inventory 95,000

Total Current Assets 210,000

Now let calculate Current Ratio

Current Ratio= Current Assets / Current Liabilities

Current Ratio=210,000/80,000

Current Ratio= 2.63

b Calculation for Acid-Test Ratio

Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities

Acid-Test Ratio =(210,000-95,000)/80,000

Acid-Test Ratio =115,000/80,000

Acid-Test Ratio = 1.44

c. Calculation for Debt to Assets Ratio

First step is to calculate total Debt

Accounts payable 80,000

Mortgage payable 140,000

Total Debt 220,000

Now let calculate the Debt to Assets Ratio

Debt to Assets Ratio= Total Debt/ Total Assets

Debt to Assets Ratio=220,000/430,000

Debt to Assets Ratio= 51.16%

d. Calculation for Return on assets

Return on assets= Net Income/ Average Assets

Return on assets=25,000/430,000

Return on assets 5.81%

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The Three Amigos Restaurant just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and

shusha [124]

Answer:

$33.93

Explanation:

First, find the present value of each year's dividend at 15% required rate of return;

(PV of D1 ) = 4.40 / (1.15) = 3.8261

(PV of D2 ) = 4.50 / (1.15²) = 3.4026

Next, find terminal Cashflow;

D3 = D2 (1+g)

D3 = 4.50 (1.02) = 4.59

(PV of D4 onwards ) = $\frac{\frac{4.59}{0.15-0.02} }{(1.15)^{2} } \\ \\ = \frac{35.3077}{1.3225} \\ \\ = 26.6977$

Next sum up the PVs to find price;

=3.8261 + 3.4026 + 26.6977

= 33.926

Therefore, this stock is worth $33.93 today

7 0

3 years ago

Brenda has recently been denied a promotion. This is the third time she was turned down for promotion despite excellent performa

Serggg [28]

Answer: The options are given below:

A. a diversity-oriented employer

B. a wide span of control

C. the glass ceiling effect

D. the black swan effect

E. an affirmative action

The correct option is C. The Glass Ceiling Effect

Explanation: The glass ceiling is a term used in organizations, it is a metaphor that is used to refer to an invisible and artificial barrier that prevents women and minority groups from being promoted to top managerial and executive level positions within an organization.

The scenario presented above is a perfect example of the glass ceiling effect, this is because, though Brenda is qualified for the promotion, she is denied it regardless, because "that's just the way things are". As you can see, the reason for the denial of her promotion is not a professional issue, just a tradition to always suppress the advancement of certain categories of people.

6 0

3 years ago

Read 2 more answers

The point on the business cycle where real GDP reaches its highest level is known as the________.

Alex73 [517]

The choices can be found elsewhere and as follows:

a) Summit
b) Appogee
c) Peak
d) Maximoid

I believe the correct answer is option D. The point on the business cycle where real GDP reaches its highest level is known as the Maximoid. Hope this answers the question. Have a nice day.

8 0

3 years ago

The making of the movie Waterworld cost a total of $180 million. It generated a total of $130 million in revenues. $70 million w

slava [35]

Answer:

Losses for the producers of Waterworld, if they finished the movie would be $50 million. If they did not finish the movie, losses would be $130 million.

Explanation:

This is because, the difference between all their expenses in making the movie and the revenue generated is actually $50 million. This happens to be their losses while on the other-hand, if they didn't finish making the movie, it would be $130 million (aside the cost spent in finishing the movie after rebuilding the set)

5 0

3 years ago

Based upon the following data, which of the following mutually exclusive projects should you choose if your required return is 1

scoray [572]

Answer:

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $80

Cash flow in year 2 = $40

Cash flow in year 3 = $40

Cash flow in year 4 = $30

I = 10%

NPV = 6.33

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $40

Cash flow in year 2 = $50

Cash flow in year 3 = $60

Cash flow in year 4 = $55

I = 10%

NPV = 10.33

Project B has a higher NPV and it should be chosen

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

3 years ago