The additional amount over the amount borrowed that the consumer must repay. This includes fees, interest, and other charges.
Answer:
The computation is shown below:
Explanation:
The computation is shown below:
Current ratio = current assets ÷ current liabilities
where,
Current assets = cash + inventory + account receivables
= $500 + $300 + $200
= $1000
Current liabilities is
= $200 + $400
= $600
So, the current ratio is
= $1,000 ÷ 600
= 1.67 times
Debt Ratio is
= Total Liabilities ÷ Total Assets
= $600 ÷ $1,500
= 40%
TIE is Time Interest Earned ratio
= EBIT ÷ Interest Expense
= $5,000 ÷ $2,000
= 2.5
Profit margin is
= Net Income ÷ Total Sales
= $800 ÷$10,000
= 8%
And,
Total asset turnover is
= Sales ÷ Total Assets
= $10,000 ÷ $1,500
= 6.67
Answer:
Strike price of October gold future = $1,200 per ounce
The exercise price = $1,180
<em />
<em>To calculate the amount that will help the investor to decide about the position</em>
Amount added to margin = (Strike price - Future price) * Delivery if each contract
Amount added to margin = ($1,200 - $1,180) * 100
Amount added to margin = $20 * 100
Amount added to margin = $2,000
Therefore, the amount of $2,000 is received. The investor has short position on future contracts to sell 100 ounces of gold in October.
Answer:
$27,400 and $59,600
Explanation:
The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:
Depreciation expense is
= (Purchase cost - residual value) × useful life ÷ sum of years
= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)
= $27,400
And, the book value is
= Purchase cost - depreciation expense
= $87,000 - $27,400
= $59,600
