Answer:
Total Asset Turnover: 2.2857
Explanation:
<u>Total Assets</u>
Begininng Balance 2,450,000
Ending Balance 2,800,000
Period activity 350,000
<u>Sales:</u> 6,000,000
<em><u>Total Asset Turnover</u></em>: <u> </u><em><u> Sales </u></em>
<em> Average Total Assets</em>
<u> 6,000,000 </u>
( 2,450,000 + 2,800,000 ) / 2
=
<u>6,000,000</u>
2,625,000
=
<u>2.2857</u>
The correct answer should be 30 because you don't want too much pressure .
Answer:
b. Only Emerald Corporation's current ratio will be increased.
Explanation:
Given that
Emerald current ratio is
= 0.5 i.e. = 0.5 ÷ 1
now in case when the current liability is doubles , so the current assets is
= 0.5 + 1 = 1.5
And, the cuurrent liabilities is
= 1 + 1
= 2
so new ratio is
= 1.5 ÷ 2
= 0.75
Now
Ruby current ratio is
= 1.5
i.e. = 1.5 ÷ 1
Now in case when the current liability is doubled,
the current assets is
= 1.5 + 1
= 2.5
And, current liabilities is
= 1 + 1
= 2
Now new ratio is
= 2.5 ÷ 2
= 1.25
Therefore the emerald current ratio is rised from 0.5 to 0.75
And, the Ruby's ratio has decline from 1.5 to 1.25
Answer:
<h2>
a. The Preferred stock is noncumulative.</h2>
Preferred stock
= 7,710 * 17.5 * 8%
= $10,794
Per share
= 10,794/7,710
= $1.40
Common Shareholders.
= 63,800 - 10,794
= $53,006
Per share
= 53,006/49,000
= $1.08
<h2>
b. Preferred stock is cumulative. </h2>
This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.
Preferred stock
= 7,710 * 3 years (2017,2018,2019)
= $23,130
Per share = 23,130/7,710
= $3
Common stock
= 63,800 - 23,130
= $40,670
Per share
= 40,670/49,000
= $0.83
c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?
b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.
<span>This is an example of a strategic alliance of joint venture or business partnering. Joint venturing when trying to move into a new market can be a great idea for a business because they can use the distribution and established markets that the current business already has to move their own products.</span>
