1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
USPshnik [31]
3 years ago
15

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

Business
1 answer:
Leokris [45]3 years ago
6 0

Answer:

Just Dew It Corporation

2017 Ratios:

A 1. Debt-equity ratio = Total debt/Equity = 72%

A 2. Equity multiplier  = 58%

B. Total debt ratio = 42%

Long-term debt ratio = 14%

2. 2018 Ratios:

A. Current ratio = 96%

B. Quick ratio = 36%

C. Cash ratio = 9.5%

D. NWC to total assets ratio = -0.89%

E. Debt-equity ratio and equity multiplier:

Debt-equity ratio = 63%

Equity Multiplier = 61%

F. Total debt ratio and long-term debt ratio:

Total debt ratio = 38.5%

Long-term debt ratio = 14%

Explanation:

a) Data and Calculations:

JUST DEW IT CORPORATION

2017 and 2018 Balance Sheets

Assets Liabilities and Owners' Equity

2017 2018  

Current assets               2017         2018

Cash                             $10,150     $10,300

Accounts receivable     27,700       28,950

Inventory                      62,300       64,800

Total current assets $100,150   $104,050

Fixed assets

Net plant and

equipment            $325,000  $342,000  

Total assets            $425,150  $446,050

Current liabilities        2017         2018

Accounts payable   $70,250     $61,250

Notes payable           47,250       46,750

Total                       $117,500    $108,000

Long-term debt     $59,900     $63,900

Total liabilities      $177,400     $171,900

Owners' equity

Common stock and  

paid-in surplus     $89,000    $89,000

Retained earnings 158,750      185,150

Total                    $247,750   $274,150

Total liabilities and

owners' equity   $425,150  $446,050

2017 Ratios:

Debt-equity ratio = Total debt/Equity =  $177,400/$247,750 = 0.72 or 72%

Equity multiplier = Equity/Assets = $247,750/$425,150 = 58%

B. Total debt ratio = $177,400/$425,150 = 42%

Long-term debt ratio = $59,900/$425,150 = 14%

2. 2018 Ratios:

A. Current ratio = Current assets/current liabilities

= $104,050/$108,000 = 96%

B. Quick ratio = $(104,050-64,800)/$108,000 = 36%

C. Cash ratio = $10,300/$108,000 = 9.5%

D. NWC to total assets ratio = ($104,050-$108,000)/$446,050 = -0.89%

E. Debt-equity ratio and equity multiplier:

Debt-equity ratio = $171,900/$274,150 = 63%

Equity Multiplier = $274,150/$446,050 = 61%

F. Total debt ratio and long-term debt ratio:

Total debt ratio = $171,900/$446,050 = 38.5%

Long-term debt ratio = $63,900/$446,050 = 14%

You might be interested in
1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe
marta [7]

Answer:

Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:

a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales.  This result will be different with an increase by a similar margin in the Cost of Goods Sold.

b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.

Explanation:

The net earnings to sales is an expression of the ratio of the net income to the sales revenue.  The net earnings result after deducting all costs from sales revenue.  The net earnings to total book assets are the same expression as the Return on Assets.

6 0
3 years ago
When Managing the Sales force you must:
storchak [24]

Answer:

Right option is A

Social Gatherings, Family Outing, Evaluating

Explanation:

An integral part of the success of a marketing strategy is sales force management. Sales force management consists of the following actions: -

1)Recruiting is the center of effective sales. One approach to choosing is to ask the customer what characteristics he is looking for in a sales representative. Companies are developing a selection process where behavioral and managerial skills are tested.

2)Training is important to stay ahead of the competition. The sales department must undergo training before entering the market, as well as training at different stages of the product life cycle.

3)Sales supervision is determined by the product portfolio profile. General control is conducted in relation to sellers dealing with potential customers. Another observation is related to effective time management from preparing a client’s call to closing a deal.

4)Motivation is a key aspect of sales force management. Here, compensation plays an important role in increasing motivation. Compensation may be awarded based on a sales quota. Other motivational tools are social gatherings and family walks or outings.

5)Evaluation is essential for managing your sales team. Sales reports submitted by the sales department provide a good starting point for evaluations.

8 0
3 years ago
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result
jeka94

Answer:

the coefficient of elasticity is 1.25. therefore demand is elastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

5% / 4% = 1.25

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

5 0
3 years ago
Which of the following analytical techniques is designed to output the best decision?
navik [9.2K]

Answer:

Prescriptive analytics      

Explanation:

Prescriptive Analytics refers to the data analytics field that specializes on determining the best approach in a situation, based on the data accessible. It is linked towards both descriptive analytics as well as predictive analytics yet highlights valuable insights rather than data analysis.  

Prescriptive analytics collects information with its systems from either a range of descriptive or predictive databases and relates it to the choice-making process. It involves mixing existing conditions with alternative actions to evaluate how well the outcome would be influenced by each.

It can also assess the effects of judgment, based on various potential future situations. The discipline draws inspiration from applied mathematics, using a number of statistical techniques to construct and re-create potential judgment trends that could have different effects on an entity.

6 0
3 years ago
During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.
RUDIKE [14]

when the nation went through a deep recession in the early 1980s and 2007-2009, the unemployment rate reached A. 10%.

<h3>what was the unemployment rate in 2007-2009?</h3>

after the disastrous Great Recession started in late 2007, companies were forced to terminate people's contracts to stay afloat.

this led to unemployment reaching levels of around 10% of the labor force. This had not been seen in the U.S. since the early 1980s.

options for this question include:

A. 10%. B. 20%. C. 30%. D. 40%.

find out more on the recession of 2008 at

#SPJ1

5 0
1 year ago
Other questions:
  • According to the text, the most sensible method for budgeting for promotion expenses is to: A. allocate some fixed percentage of
    8·1 answer
  • Why should small business owners understand the concept of contract modification and settlement of disputed and undisputed debts
    13·1 answer
  • The future value and present value equations also help in finding the interest rate and the number of years that correspond to p
    10·1 answer
  • Service variability means that the quality of services does not depend on who provides them. True False
    7·1 answer
  • Timothy, a cashier, is given a twenty-dollar bill at his store. He is suspicious of the customer and wants to make sure the curr
    10·2 answers
  • If Cute Camel ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholder
    9·1 answer
  • A consumer is said to be indifferent between two consumption bundles _________.a. when the consumer doesn't care about his or he
    12·1 answer
  • 3. When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was expor
    12·1 answer
  • Identify the following as financing activities (F) or investing activities (I):
    12·1 answer
  • What is the future value of a 500 annuity payment over wight years if interest rates are 14 percent?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!