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Bezzdna [24]
3 years ago
9

Star Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1 before entering into an operating lease. Not

including any indirect effects on earnings, when Star Corp. records the operating lease, the immediate impact on these ratios is a(an):
Business
1 answer:
Fynjy0 [20]3 years ago
3 0

Answer:

The return on assets and debt/equity ratio does not change

Explanation:

An operating lease does not affect assets and liabilities. From the formula:

Equity = Assets - Liabilities, since both assets and liabilities are not affected (they remain unchanged) therefore the equity is also the same.

The debt/ equity ratio = total liabilities/total equity. Since liabilities and equity remain unchanged, therefore The debt/ equity ratio is the same.

Also the return of assets (earnings/assets) remain the same

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Other things being​ equal, demand is less elastic A. the smaller the percentage of a total budget that a family spends on a good
telo118 [61]

Answer:

The correct answer is letter "D": the more substitutes a good has.

Explanation:

Price elasticity of demand is the result of the relation between changes in price and quantity demanded for a good or service. <em>Price elasticity of demand is calculated dividing the percentage change in quantity demanded by the percentage change in price.</em> If the result is equal to or greater than 1, the demand is elastic. This situation implies a minimum change in price will affect by far the quantity demanded of that good or service.

Thus,<em> products with many substitutes are elastic because a minimal change in their price would represent a large change in quantity demanded since consumers will find similar products that satisfy their needs in the same proportion.</em>

3 0
3 years ago
Budgeted Actual Overhead cost $909,000 $884,000 Machine hours 55,000 46,000 Direct labor hours 101,000 98,000 Overhead is applie
LiRa [457]

Answer:

Missing word <em>"(b) Determine the amount of overhead applied for the year?"</em>

<em />

1. Predetermined overhead rate = Budgeted overhead / Budgeted direct labor hours

Predetermined overhead rate = $909,000 / 101,000

Predetermined overhead rate = $9 per DLH

2. Overhead applied = Actual hours * Overhead rate

Overhead applied = 98,000 * $9 per DLH

Overhead applied = $882,000

3 0
3 years ago
Art, Inc., has 5,000 shares of 4%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out
son4ous [18]

Answer:

Dividend paid to Common Stockholders  =  $25000

so correct option is a. $25,000

Explanation:

given data

shares outstanding = 5,000

Par value = $100

Dividend Rate = 4%

common stock outstanding = 20,000 shares

par value = $1

dividend = $45,000

to find out

What is the amount of dividends received by the common stockholders in 2018

solution

first we get here Value of Preferred Stock that is express as

Value of Preferred Stock = Number of shares outstanding  ×  Par value    ....................1

put here value we get

Value of Preferred Stock is = 5,000 × $100

Value of Preferred Stock is = $500,000

and

Annual Dividend will be here

Annual Dividend = Value of Preferred Stock × Dividend Rate      .........................2

put here value we get

Annual Dividend = $500,000 × 4%

Annual Dividend = $20,000

and

so as for 2017  Dividend paid is here as

Dividend paid to Preferred Stockholders = for 2016 + for 2017

Dividend paid to Preferred Stockholders = $20,000 + $20,000 = $40000

so Dividend paid to Common Stockholders = $45000- $40000 = $5000

and

for 2018 Dividend paid is here as

Dividend paid to Preferred Stockholders is  = $20,000 for the 2018

so

Dividend paid to Common Stockholders  will be = $45000 - $20000

Dividend paid to Common Stockholders  =  $25000

so correct option is a. $25,000

5 0
3 years ago
Product focused processes: a) are desirable because resource needs increase slowly with the complexity of a process. b) are proc
LenKa [72]

Answer:

b) are processes that are specialized for relatively few products or customer groups.

Explanation:

As the name suggests these are focused specifically for some products and not for all of the products manufactured by a company. These processes promote the product specification details, by advancing the processes of manufacturing more specific.

These are majorly used for customer specified products, generally identical products. In which no two products are similar in nature. And accordingly, these help in maximum customer satisfaction.

3 0
3 years ago
A steering committee identifies and assesses all possible systems development projects that the organization could undertake.
Mashcka [7]
The appropriate response is Information Systems Planning. It is the procedure whereby a senior chief, a business gathering, an IS administrator or a controlling board distinguishes and evaluates every single conceivable framework improvement extends that an association could embrace.
6 0
3 years ago
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