Answer: calculated by dividing total liabilities by net worth.
Explanation:
The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.
It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.
Answer:
A) shut down; losses; $15,600
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. Firms earn zero economic profit in the long run.
If in the short run, price is less than average variable cost, the firm should shut down. In this question, price ($10) is less than average variable cost ($18). The firm should shut down in the short run.
Profit or loss = Total revenue - Total cost
($10-$23) x 1200 = -$15,600
The firm is earning a loss because average total cost in greater than price.
I hope my answer helps you
Answer:
The journal entries to record service revenue during July should be:
Dr Cash 3,600
Cr Service revenue (80 hours per month) 3,600
Dr Accounts receivable [(115 - 80 hours) x $40] 1,400
Cr Service revenue 1,400
Since the company has collected only the regular hours provided according to the contract, the remaining hours should be recorded as accounts receivable.
Answer:
Explanation:
First of all we shall calculate the present value of an annuity( at the end of 7 years ) of 1475
at interest rate of 6/12 = .5 % for total instalment of 12 x 8 = 96 ( 6% compounded monthly )
rate of intt .5% , no of instalment 96
PV of annuity of 1475
= 112252.66
This amount has to be discounted at 9 % to present value for 7 years
or calculated at 9/12 = .75% for 84 instalment
PV of 112252.66
= 59925.55
Now , we shall calculate PV of annuity of 1475 for 7 years compounted monthly ( rate of intt .75 % , no of instalment 84)
PV of annuity of 1475
= 91671.84
Total value
= 59925.55 + 91671.84
= 151597.39