All categories

3 years ago

Allyba Dance Supply has total assets of $550,000 and total debt of $295,000. What is the equity multiplier?

Business

1 answer:

marishachu [46]3 years ago

3 0

Answer:

Equity multiplier = 2.16

Explanation:

Given:

Total assets = $550,000

Total debt = $295,000

Find:

Equity multiplier

Computation:

Equity multiplier = Total assets / [Total assets - Total debt]

Equity multiplier = $550,000 / ($550,000 – 295,000)

Equity multiplier = 2.16

You might be interested in

A company is considering the purchase of a new piece of equipment for $117,200. Predicted annual cash inflows from this investme

monitta

Answer:

3.79 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $117,200

In year 1 = $53,000

In year 2 = $21,500

In year 3 = $26,500

In year 4 = $20,500

In year 5 = $23,000

If we sum the first 3 year cash inflows than it would be $101,000

Now we deduct the $101,000 from the $117,200 , so the amount would be $16,200 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $20,500

So, the payback period equal to

= 3 years + $16,200 ÷ $20,500

= 3.79 years

In 3.79 years, the invested amount is recovered.

8 0

3 years ago

Four brokerage firms operate in the same small city as Jackson’s firm. All the firms charge approximately the same listing commi

miskamm [114]

Answer:

Yes, this is antitrust violation. Because, the tend to restrain trade in that small city thereby denying other small player brokerage firms from making a living due to their monopolistic actions among themselves.

Explanation:

Antitrust laws are designed in-order to prohibit a number of business practices that restrain trade. Examples of illegal practices are price-fixing conspiracies, corporate mergers that are likely to cut back the competitive fervor of certain markets, and predatory acts designed to gain or hold on to monopoly power.

Violations of such laws attract sanctions and punishment from the regulatory body in-charge of protecting such.

8 0

3 years ago

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he

SashulF [63]

Answer:

D. Lose because the mechanic could not have foreseen injury to Phillip.

8 0

3 years ago

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 405,000 Beginning m

skelet666 [1.2K]

Missing information:

Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

Answer:

First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500

now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000

variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250

1. Prepare a contribution format income statement.

Total sales $405,000

Cost of goods sold $283,500

Gross contribution margin $121,500

Variable selling expense $20,250

Variable adm. expense $20,250

Contribution margin $81,000

Fixed period expenses:

Fixed selling expense $40,500
Fixed administrative expense $16,200

Net operating income $24,300

2. Prepare a traditional format income statement.

Total sales $405,000

Cost of goods sold $283,500

Gross profit $121,500

Operating expenses:

Selling expenses $60,750

Adm. expenses $36,450

Net operating income $24,300

3. Calculate the selling price per unit.

$405

4. Calculate the variable cost per unit.

$324

5. Calculate the contribution margin per unit.

5 0

3 years ago

When originally purchased, a vehicle had an estimated useful life of 12 years. The vehicle cost $47,000 and its estimated residu

levacccp [35]

Answer:

66545

Explanation:

4 0

3 years ago