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svlad2 [7]
3 years ago
9

A company has the following information. What is the financial leverage ratio? Total assets $736,000 Total liabilities 314,000 I

nterest expense 9,400
Business
1 answer:
faltersainse [42]3 years ago
8 0

Answer:

1.7441

Explanation:

Calculation to determine financial leverage ratio

Using this formula

Financial leverage ratio=Total assets/(Total assets-Total liabilities)

Let plug in the formula

Financial leverage ratio=736,000/(736,000 - 314,000)

Financial leverage ratio= 1.7441

Therefore the financial leverage ratio is 1.7441

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Answer:

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Explanation:

As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.

Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.

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