Answer and Explanation:
The calculation is given below:
a. The debt ratio is
= Total liabilities ÷ total assets
= $148,000 ÷ $270,000
= 0.5 times
b. The debt/equity ratio is
= Debt ÷ equity
= $148,000 ÷ ($270,000 - $148,000)
= $148,000 ÷ $122,000
= 1.21 times
c. The times interest earned ratio is
= earning before interest and taxes ÷ interest expense
= $81,000 ÷ $17,000
= 4.76 times
Book value is cost minus accumulated depreciation is the book value of the property, plant, and equipment.
What is Depreciation?
Depreciation is frequently mistaken to mean that something is merely losing value or that a computation is made for tax purposes. Although it is a complicated subject, depreciation plays a significant role in your company's tax returns. Read on to find out what depreciation is, how it's calculated, and how your business can be impacted by your depreciation estimate.
Two key components make up depreciation. The first factor is the asset's value dropping over time. The second consideration is spreading out the initial cost of an expensive asset over the time you utilise it.
The projected useful life of an asset, or how long it may be utilised, determines the number of years over which it is depreciated.
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Answer:
Trial balance
Particulars Debit Credit
Cash $6,000
Account receivable $10,800
Equipment $30,000
Account payable $6,000
Common Stock $36,000
Dividend $2,400
Sales revenue $17,200
Administrative expense $8,000
Utilities expense <u>$2,000 </u> <u> </u>
Total <u>$59,200</u> <u>$59,200</u>
Answer:
Option (b) is correct.
Option (b) is correct.
Explanation:
1. Pure Expectation Theory :
Each option must provide the same amount of cash at the end of 2 years, which implies that,
CF at the end of year 2 = CF at the end of year 1
[tex](1+0.0738)^{2} = (1+0.0492) (1+x)
[tex\]
Hence, x = 9.90
so the market's estimate of the one year Treasury rate one year from now it will be 9.90%
2. In case of maturity risk premium, the cash flow of two year treasury security will reduce, it will be:
= 7.38 - 0.40
= 6.98.
Hence, Treasury Rate will be as follows:
CF at the end of year 2 = CF at the end of year 1
[tex](1+0.0698)^{2} = (1 + 0.0492) (1 + x)[tex\]
x = 9.080%
Answer:
B. unique markets
Explanation:
Macroeconomics is concerned with the overall behavior of the economy as a whole. It studies the performance and decision-making processes of the entire economy. Macroeconomics focuses on the aggregate indicators that affect the entire country, such as inflation, unemployment rate, GDP growth rate, and price levels.
From the list provided, macroeconomics will be concerned with global markets, national unemployment, and worldwide inflation. Unique markets are specific to a certain product or industry and will be covered by microeconomics. Microeconomics is the study of how choices made by firms and households affects production and consumption of specific products.
