All categories

3 years ago

Larkspur Company has been operating for several years, and on December 31, 2020, presented the following balance sheet.

Business

1 answer:

Nikitich [7]3 years ago

8 0

Answer:

a. Current Ratio = (Cash + Receivables + Inventory) / Accounts Payable

Current Ratio = $36,400+$69,200+$99,300 / $141,500

Current Ratio = 1.448056537102473

Current Ratio = 1.45

b. Acid-test Ratio = (Cash + Receivables) / Accounts Payable

Acid-test Ratio = ($36,400+$69,200)/$141,500

Acid-test Ratio = 0.7462897526501767

Acid-test Ratio = 0.75

c. Debt to Assets Ratio = (Accounts Payable + Mortgage Payable) / Total Assets

Debt to Assets Ratio = $78,100 +$141,500/ $442,600

Debt to Assets Ratio = 0.4961590600994126

Debt to Assets Ratio = 49.62%

d. Return on Asset = Net Income / Total Assets

Return on Asset = $25,000 / $442,600

Return on Asset = 0.0564844103027564

Return on Asset = 56.48%

You might be interested in

You have a portfolio that is invested 11 percent in Stock R, 56 percent in Stock S, and the remainder in Stock T. The beta of St

Kruka [31]

Answer:

The beta of stock T is 1.82

Explanation:

The portfolio beta is made up of the weighted average of the individual stock betas in the portfolio.

The formula for portfolio beta is,

Portfolio beta = wA * beta of A + wB * beta of B + ... + wX * beta of X

The weight of stock T in the portfolio is = 1 - (0.11 + 0.56) = 0.33 or 33%

Let beta of Stock T be x. The beta of Stock T is:

1.47 = 0.11 * 0.84 + 0.56 * 1.39 + 0.33 * x

1.47 = 0.0924 + 0.7784 + 0.33x

1.47 - 0.0924 - 0.7784 = 0.33x

0.5992 / 0.33 = x

x = 1.815 rounded off to 1.82

3 0

3 years ago

Read 2 more answers

Sally tends to procrastinate early in a project's development, but she always comes through when the pressure is on. for sally,

iragen [17]

Constructive stress. When stress produces results it is constructive.

7 0

3 years ago

Grateful Eight Co. is expected to maintain a constant 4.6 percent growth rate in its dividends indefinitely. If the company has

ad-work [718]

Answer:

11%

Explanation:

To address this exercise, we need to recall the formula for dividend discounted model (DDM). The DDM is stated as below:

Stock intrinsic value = Next year dividend/(Required rate of return - Long term growth)

Rearrange a bit this formula, we have:

Next year dividend/Stock intrinsic value = Required rate of return - Long term growth, or

Dividend yield = Required rate of return - Long term growth

Putting all the number together, we have:

6.4% = Required rate of return - 4.6% or Required rate of return = 11%

7 0

3 years ago

In November, two months before year-end, the bookkeeper erroneously recorded the receipt of a one year bank loan with a debit to

OleMash [197]

In November, two months before year-end, the bookkeeper erroneously recorded the receipt of a one-year bank loan with a debit to cash and a credit to interest revenue. The most effective method for detecting this type of error is to Send a bank confirmation as of year-end.

A business may additionally have sales in a given time period that includes invoices they have got sent out to customers, in addition to coins bills that have been made at the time of a buy. All of these incomes are included as revenue during that term.

Sales are described as the profits generated through a commercial enterprise' number one operations. Its miles are often known as the “pinnacle line” and are proven at the top of an earnings announcement. internet income is an accounting time period that refers to the entire revenue minus the entire costs for any given length.

Learn more about revenue here brainly.com/question/16232387

#SPJ4

7 0

9 months ago

If you want to prevent any disputes about the application of the parol evidence rule, what should you do?

Scilla [17]

Answer:

Refrain from introducing evidence of prior oral agreements that occurred before or while the agreement was being reduced to its final form in order to alter the terms of the existing contract and you will have no disputes.

Cheers!

3 0

2 years ago

Read 2 more answers