Answer:
Love Drycleaner's Assets: 81
Ernie's Bank Liability: 5
Weekly Stop Grocery Equity: 31
Ernie's Bank has the strongest financial position as it has de better debt to equity ratio
Explanation:
Accounting equation:
Assets = Liability + Equity
<u>Love Drycleaners:</u>
Assets ??? = Liab 43 + Equity 38
Assets = 43 + 38 = 81
<u>Ernie's Bank:</u>
Assets 25 = Liab ?? + Equity 20
Liab= 25 - 20 = 5
<u>Weekly Stop Grocery:</u>
A 38 = L 9 + E ??
equity = 38 - 9 = 31
THe strongest financial position will be for Ernie's Bank
As the debt to equity ratio is the lowest:
<u>Love Drycleaners: </u> 43/38 = 1.13 there is 1 dollar of debt per every dollar of quity an increase in the interst rate may cause troubles to this company.
<u>Ernie's Bank: </u> 5/20 = 0.25 There is 0.25 of debt per every dollar of equity This company is finance almost through equity so it could useleverage if needed to keep operations
<u>Weekly Stop Grocery:</u> 9/31 = 0.29 This company is also in good position as Ernie's but the question is for the strongest and that one is Ernie's Bank
Answer:
$101
Explanation:
Calculation to determine the amount in the accounts receivable subsidiary ledger account of customer B.
Using this formula
Customer B accounts receivable amount=Accounts receivable balance- A,C ,D Accounts receivable subsidiary ledger
Let plug in the formula
Customer B accounts receivable amount=$9,083-$1,746-$3,296- $3,940
Customer B accounts receivable amount=$101
Therefore the amount in the accounts receivable subsidiary ledger account of customer B is $101
Answer:Shareholder's equity =$264,820
Explanation:
Purcahse of treasury stock =Shares purchased×price purchased
=3,500 shares×$11.70 per share
=$40,950
Shareholder's equity =Equity capital+Net income−
Dividend−Treasury stock
Given
Net income = $98,000
Dividends =$41,000
but Equity capital =Shares issued× the Issued price +
Shares issued× the Issued price +....
= 10,800 x $5.70 + 19,300 x 9.70=61,560 + 187,210=$248,770
Shareholder's equity = $248,770 + $98,000 - $41,000 -$40,950= $264,820.
