Answer:
A) It is a use of cash, and will be shown in the investing section as a subtraction.
B) Depreciation Expense
C) Chester’s long-term debt will rise by $10,000,000
D) Broad differentiation
E) Andrews ROE will increase.
Explanation:
A) As the company will do a cash dibursement will be considered cash use and because is investing on it to increase future cash flow
B) A period cost is a cost which cannot be capitalized into an asset. As cost which occur as the time passes over the years Which is the case for depreciation expense
C) bonds payable for 10,000,000 will be recorded
the leverage is a ratio to analize the firm it does not influence the accounting
D) The company differenciate his products from the rest of their competitors in a great variety of products rather than a single buyer segment.
E) ROE will increase as the leverage makes the debt weight increase while the equity weight (proportion of the company owned by the stockholders)
For the rest ofthe options the information provided is insufficient please do another question with the information
What affects employers’ decisions on how much to pay their workers is : <u>Maximizing profits.</u>
<h3>What is profit maximization?</h3>
Profit maximization can be defined as the way in which a company or an organization tend to determine the price level that enables them to maximize profit.
Every company or organization goals is to make profit based on this company that is determine to make profit must tend to make use of profit maximization approach.
Profit maximization is important as it can tend to lead to sustainable growth for companies which is why most companies make use of profit maximization strategy so as to make higher profit.
Therefore what affects employers’ decisions on how much to pay their workers is : <u>Maximizing profits.</u>
Learn more about Profit maximization here:brainly.com/question/15969466
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Answer:
8.28%
Explanation:
Given that,
Net income = $10 million
Total debt = $65 million
Debt ratio = 35 percent
Debt ratio = Total debt ÷ Total assets
35 percent = $65 million ÷ Total assets
Total assets = $65 million ÷ 35 percent
= $185,714,286
Wave Runnerz's ROE for 2018:
= Net income ÷ Equity
= $10,000,000 ÷ (Total assets - Debt)
= $10,000,000 ÷ ($185,714,286 - $65,000,000)
= $10,000,000 ÷ $120,714,286
= 0.0828 or 8.28%
Cost Principle,
<span>requires that assets be recorded at the cash amount (or its equivalent) at the time that an asset is acquired.</span>