Kevin decided that he wanted to buy a $32,000 new car. He paid $1,000 for a down payment

Having in mind the pandemic, should a company reduce its leverage in order to add value to its shareholders? and why?

Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

8 0

3 years ago

Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town nex

Ne4ueva [31]

Answer:

Contingency viewpoint or approach of management

Explanation:

According to the contingency viewpoint, there is no particular standard of management. Rather, the type of management style adopted including decisions made depends on the type of situation that the organization is facing at the particular time. Nikita in this scenario is using the contingency approach since she is making decisions based on the upcoming convention.

3 0

3 years ago

The local baseball team owner hires you to help maximize the team's profits. You are told that costs are constant because enough

ozzi

Answer:

increase price per ticket.

Explanation:

increase price per ticket in proportion to cost incurred.

set up an internal control system to ensure all revenue from ticket are well accounted for.

3 0

3 years ago

During 2013, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $33,000. The business paid divi

lesya [120]

Answer:

$5,000

Explanation:

Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.

Ending Stockholders Equity = Beginning Stockholders Equity + Income for the period - Dividend paid During the period

As first year of Operation the value of stockholders equity is considered as $0

Ending Stockholders Equity = $0 + ($60,000 - $33,000) - $22,000

Ending Stockholders Equity = $27,000 - $22,000

Ending Stockholders Equity = $5,000

7 0

3 years ago

Read 2 more answers

Prepare a classified year-end balance sheet, (Note: A $9,000 installment on the long-term note payable is due within one year.)

Katarina [22]

Answer:

Blessinger Co.

Classified Balance Sheet as at December 31, 2017

ASSETS

Non- Current Assets

Office equipment $38,000

Accumulated depreciation-Equipment ($3,200) $34,800

Building $288,000

Accumulated depreciation-Building ($42,000) $246,000

Land $700,000

Total Non Current Assets $980,800

Current Assets

Accounts receivable $27,000

Prepaid Prepaid $15,000

Insurance $9,000

Office supplies $3,300

Cash $112,000

Total Current Assets $166,300

TOTAL ASSETS $1,157,100

EQUITY AND LIABILITIES

LIABILITIES

Current Liabilities

Accounts payable $25,800

Salaries payable $14,500

Interest payable $2,500

Note Payable $9,000

Total Current Liabilities $51,800

Non-Current Liabilities

Long-term note payable ($72,000 - $9,000) $63,000

Total Non- Current Liabilities $63,000

TOTAL LIABILITIES $114,800

EQUITY

P.Blessinger, Capital $910,000

P. Blessinger, Withdrawals ($200,500)

Profit for the Year $332,800

TOTAL EQUITY $1,042,300

TOTAL EQUITY AND LIABILITIES $1,157,100

Explanation:

A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.

Calculation of Profit for the year :

$ $

Service fees earned 430,800

Less Expenses

Salaries expense 90,000

Insurance expense 5,200

Rent expense 5,000

Depreciation expense-Equipment 800

Depreciation expense-Building 7,000 (108,000)

Profit for the year 332,800

7 0

3 years ago