In a perpetual inventory system, inventory is initially recorded at _____

Generally, a high ___________ ratio could lead investors and creditors to view the company as being very risky debt to owners' e

Ipatiy [6.2K]

High debt to owner's equity ratio.

This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.

6 0

3 years ago

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LO 1.4How can having a bonus system based purely on sales goals create an environment that encourages unethical behavior?

ValentinkaMS [17]

Answer:

Sometimes sales representatives could be able to tell lies, steal customers from other coworkers, get customers in an inappropriate way.

Explanation:

There will always be the possibility of a behavior aimed at financial obsession by the sales representatives involved in the bonus process.

It is important to consider how excessive greed could have a fundamental role to play improperly against the rest of the team of the sales force; Therefore, it is an incentive that while on the one hand, it could be very beneficial for the company by offering the possibility of a significant increase in the company's sales.

On the other hand, it is necessary to consider the possible problems of deception and greed that could be presented among the fellow sales representatives. In my opinion, this should be an activity that needs to be monitored very closely in order to be highly beneficial for the group in general.

3 0

3 years ago

Sheffield Corp. had 205000 shares of common stock, 20300 shares of convertible preferred stock, and $1580000 of 4% convertible b

Ahat [919]

Answer:

Diluted earnings per share for 2021 is: $2.19 per share.

Explanation:

Amount of increase in net income if bonds are converted = Total value of convertible bonds * Bond rate * (100% - Tax rate) = $1580000 * 4% * (100% - 35%) = $41,080

Total earnings available to Equity Shareholders = Net income + Amount of increase in net income if bonds are converted = $599000 + $41,080 = $640,080

Number of shares of common stock = 205,000

Number of common shares obtainable from preferred stock = 39,800

Number of common shares obtainable from convertible bonds = (Total value of convertible bonds / $1,000) * 30 = ($1580000 / $1,000) * 30 = 47,400

Total number of shares outstanding = Number of shares of common stock + Number of common shares obtainable from preferred stock + Number of common shares obtainable from convertible bonds = 205,000 + 39,800 + 47,400 = 292,200

Diluted earnings per share = Total earnings available to Equity Shareholders / Total number of shares outstanding = $640,080 / 292,200 = $2.19 per share

Therefore, we have:

Diluted earnings per share for 2021 is: $2.19 per share.

6 0

2 years ago

The opportunity cost of attending college is likely to be highest for a high school graduate Choose one: A who is very intellige

Valentin [98]

Answer:

B. who can immediately take over the family business

Explanation:

Option A is wrong because opportunity cost is not related to intelligence.

Option C is not correct because a high school graduate and a college attending student can access to student loans.

The family's wealth can not be a factor in terms of opportunity cost of attending college or a high school graduate. Therefore, option D is incorrect.

Option B is correct as a college attending student cannot take over the family business. So, it is his opportunity cost. On the other hand, a high school graduate can take over the business.

8 0

3 years ago

A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec

Orlov [11]

Answer:

Explanation:

Last year Current year

Selling Price 10 10

Varaible Price 5 6

Contribution Margin 5 4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method : first In first out system

Fix Cost = 86000

contribution from opening units(6000*5) = 30000

Remaining Fix cost that should be Covered from

current year products = 56000

Units to be sold for break-even ( 56000/4) = 14000

so we have break even units 6000+14000 = 20000

Fix cost = -86000

Opening 6000*5 = 30000

Current 14000*4 = 56000

Profit = 0

Break Even using LIFO method : Last in first out

Fix Cost = 86000

Break even = Fix Cost / Contribution margin

Break even = 86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0

3 years ago

In a perpetual inventory system, inventory is initially recorded at ______.