Tony’s business has been struggling for a while his marketing strategy has not worked with the consumers his business has reached the stage words market value is an all time low Tony plans to sell his business Gavin an entrepreneur has been interested in buying Tony’s business for a while currently Gavin is in an ideal position to buy Tony’s business because it is ___ (fill in the blank)

Answers

Answer 1

Answer:

selling

Explanation:


Related Questions

True or False: You should argue to convince your opponent, not to convince the third party. True or False

Answers

Answer:

False

Explanation:

Your opponent may always disagree it is better to convince the customers that way you can make more money. So focus on convincing the third party.

Simon Company's year-end balance sheets follow.
At December 31 2014 2013 2012
Assets
Cash $ 31,600 $ 35,500 $ 37,400
Accounts receivable, net 88,500 61,000 51,000
Merchandise inventory 112,000 83,600 52,500
Prepaid expenses 10,400 9,450 5,000
Plant assets, net 278,000 257,000 234,000
Total assets $ 520,500 $446,550 $ 379,900
Liabilities and Equity
Accounts payable $ 129,200 $ 73,000 $ 50,000
Long-term notes payable secured by
mortgages on plant assets 96,000 100,000 82,200
Common stock, $10 par value 162,000 162,000 162,000
Retained earnings 133,300 111,550 85,700
Total liabilities and equity $ 520,500 $446,550 $ 379,900
The company's income statements forthe y ears ended December 31, 2014 and 2013, follow.
For Year Ended December 31Sales
2014 2013
Sales $675,000 $630,000
Cost of goods sold $398,250 $390,600
Other operating expenses 202,500 144,900
Interest expense 12,300 13,000
Income taxes 9,550 8,925
Total costs and expenses 622,600 557,425
Net income $ 52.400 $ 72,575

Earnings per share $ 3.23 4.48
Evaluate the company's efficiency and profitability by computing the following for 2014 and 2013.
1. Profit margin ratio
2. Total Asset turn over.
3. Return on total asset

Answers

Answer:

1.  2014 = 11 % and 2013 = 15 %

2. 2014 = 1.30 times and 2013 = 1.41 times

3. 2014 = 14.27 % and 2013 = 21.16 %

Explanation:

1.  Profit margin ratio

Profit margin ratio  = Earnings Before Interest and Tax / Sales × 100

Therefore,

Profit margin ratio  (2014) = ($ 52.400 + $ 9,550 + $12,300) / $675,000 × 100

                                         = 11 %

Profit margin ratio  (2013) = $ 72,575 + $ 8,925 + $13,000) / $630,000 × 100

                                         = 15 %

2. Total Asset turnover.

Total Asset turnover = Sales ÷ Total Assets

Therefore,

Total Asset turnover (2014) = $675,000 ÷  $ 520,500

                                             = 1.30 times

Total Asset turnover (2013) = $630,000 ÷ $446,550

                                             = 1.41 times

3. Return on total asset

Return on total asset = Earnings Before Interest and Tax (EBIT) / Total Assets × 100

Therefore,

Return on total asset (2014) = $ 52.400 + $12,300 + $9,550 / $ 520,500 × 100

                                              = 14.27 %

Return on total asset (2013) = $ 72,575 + $8,925 + $13,000 / $446,550 × 100

                                              = 21.16 %

Quantitative Reasoning: Use the compound interest formula to determine the accumulated balance after the stated period. $6000 invested at an APR of 8% for 9 years. If interest is compounded annually, what is the amount of money after 9 years?

Answers

Answer:

the amount of money after 9 years is $11,994.02

Explanation:

The computation of the accumulated balance after the stated period by using the compound interest formula is shown below:

Amount = Principal × (1 + interest rate ÷ n)^{nt}

= $6,000 × (1 + 8 ÷ 1 × 100)^{1 × 9}

= $6,000 × (1.08)^9

= $11,994.02

Hence, the amount of money after 9 years is $11,994.02 which is to be find out by using the above formula  

Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $740 with his state income tax return for the previous year. During the year, Tim had $4,200 of state income tax and $15,300 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1,020 and $1,540 for state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $380 for state income taxes when he files his state tax return for this year in April next year. What is the amount of taxes that Tim can deduct as an itemized deduction

Answers

Answer: $5960

Explanation:

Based on the analysis and the information provided in the question, the amount of taxes that Tim can deduct as an itemized deduction will be the addition of the Tim's state income tax return for the previous year, the state tax that was held during the year and the estimated state tax payment. This will be:

= $740 + $4200 + $1020

= $5960

Therefore, the amount of taxes that Tim can deduct as an itemized deduction will be $5960.

Most people recognize Campbell's as a brand of soup, but Campbell's also manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson Broth, and V8 juice. Campbell's International division offers more than 20 brands of soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe and Latin America. Products such as Arnott's biscuits and crackers and Bià Band soups are well known overseas. Campbell's products are sold in more than 120 countries.Refer to Campbell's. Of the following what is probably Campbell's biggest labeling concern in its international markets?1. translating ingredient, 2. promotional, 3. instructional

Answers

Answer:

2. promotional

Explanation:

Even though the 3 options may represent a serious problem for Campbell's soup, but personally I believe that out of the 3, the most serious one is promotional. Many companies have very serious issues with translations, and not only small companies. E.g. when Pepsi ran an ad in China where it meant to say "Come alive with Pepsi", it really said "Pepsi brings your ancestors form the dead", and unless you like zombies, that is not a good idea.

For example, I really hope and assume that Goldfish baked tortillas (Pepperidge Farm) aren't made with real goldfish. But considering Asian countries that eat cats, dogs, bats and about anything that moves by itself, who knows. Maybe they expect them to be from real goldfish.

The Lucido Company’s 2026 Net Income is $170. Balance Sheets are given: 12/31/2 12/31/26Cash $40 $35Accounts Receivable 100 88Machine 400 540Acc Depr. 150 250 -160 380Totals Assets $390 $503Dividends Payable $2 $0Common Stock 310 348Treasury Stock (22) (30)Retained Earnings 100 185Total Liability and O/E $390 $503Lucido sold a machine for $122 in 2026. Cost was $200; book value was $120.Net Cash Used for Investing is:___________.a. $218b. $340c. $122d. $220e. $462

Answers

Answer:

a.$218

Explanation:

Net cash used for investing activities can be calculated by taking the sum of cash inflows and outflows. As Lucido company sold the asset for $200 that will be an inflow for the company and as the machine value at the end of 2026 is $540 that means the company has purchased new machinery after selling the old one.

Cash flow from investing activities

Sale of machine                                         $122

Purchase of machine ($540 -$200)        -$340

Net cash used for investing activities    -$218

Judge Karen, a state appellate court judge, decides that the precedent for the case she is hearing is no longer correct due to technological changes. Her decision to overturn the case must be followed by___________.

Answers

Answer:

Increased publicity

Explanation:

if a judge overturns a case from a trial court and rejects precedent, the judge should get publicity for her decision and modification of the precedent so that it becomes a new way or basis of judging similar cases. In other words if judge Karen decides that the precedent before her to judge the case is outdated as a result of technological changes, she will decide on the case before her based on what she believes the precedent should reflect(new technologies) and this becomes the new basis for judging all such cases and as a result should be publicised for other judges to take note

Byron Books Inc. recently reported $14 million of net income. Its EBIT was $22.4 million, and its tax rate was 30%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $14 million of net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.

Answers

Answer:

interest expense = $2,400,000

Explanation:

net income = (EBIT - interest expense) x (1 - 30)

$14,000,000 = ($22,400,000 - interest expense) x 0.7

$14,000,000 / 0.7 = $22,400,000 - interest expense

$20,000,000 = $22,400,000 - interest expense

interest expense = $22,400,000 - $20,000,000 = $2,400,000

Explain briefly the role, responsibilities, and required background of the production designer of a film.

Answers

Answer:

Production designers are responsible for creating and managing the visual aspects of a film.

Explanation:

I hope its helpful for you.

Please mark as brainliest.

Answer:

The role of a production designer is essential in constructing a film. Production designers are responsible for making the director's vision come to life. They also bring multiple years of film production and design experience to the table.

THAT'S WHAT I PUT AND GOT 100%

Some people argue that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself” Do you agree? Why or why not?

Answers

Answer: I don't agree.

Explanation:

I do not agree that the only beneficiary of the entrepreneurial wealth is the entrepreneur himself/herself. Firstly, an entrepreneur is someone who has a business and takes all risks in order to make profit.

When an entrepreneur creates a business, he or she employs people who work for the entrepreneur and they get paid for the work done. In this way, the entrepreneur is contributing to the society.

Some entrepreneurs also give back to the society in form of scholarships, creating awareness on important issues etc. Furthermore, by setting up a business, the government taxes them and the tax can be utilized for the betterment of the country.

With the above explanation, the only beneficiary of the entrepreneurial wealth is not the entrepreneur him/herself. The whole society benefits.

All other things being equal, what is the best type of investment income?
A. Tax-deferred income fee-offset.
B. Tax-exempt income fee-only fee-based commission-only.
C. Tax-sheltered income.
D. Taxable income.
When seeking professional financial advice, _____financial planner is the most likely to offer unbiased advice.

Answers

Answer and Explanation:

The best type of investment income that is earned is tax-exempt that depend upon the commission only also the income that is spent should be bigger for the recipient

And at the time of seeking advice, the fee only should be likely to offer an unbiased advice because no other extra financial gains should be advised for an investment made except this professional fee

While the other options are ignored as they contain some interest regarding a commission for advising to their clients

The correct option is B.

The information is considered as follows:

The best type of investment income should be earned is tax-exempt that based upon the commission only.Moreover, the income that is spent should be more or the recipient And at the time of taking the advice, the fee only should be likely to offer for an unbiased advice since no other additional financial gains should be advised for an investment made except this professional fee

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Better writing helps make your efforts more ___________.A. effectiveB. analyticalC. complexD. None of the above

Answers

Answer:

A. effective

Explanation:

As more and more one writes better, there will be communication of right message and ideas that will be passed across to the audience. As with other disciplines, continuous practice would make one to be better in terms of writing .There should also be search for knowledge which will assist to develop writing skills.

Through continuous writing, one's writing will be more effective having come across different hurdles. The hurdles here means challenges one would encounter at the beginning but which have now become Surmountable due to continuous practise.

A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch?A. Consider the four-step process that many companies follow to estimate the market demand curve for their product. a. survey customersb. plot the demand curvec. scale up the quantities demanded by the survey respondentsd. add up the total quantity demanded by the customers at each price pointB. Select two factors that the analysts want to keep in mind to create the most accurate demand estimates.a. cost of inputs to productionb. information about climate changec. existing competition in the marketd. consumer demographic information

Answers

Answer:

1. Estimating demand.

Survey customersAdd up the total quantity demanded by the customers at each price pointScale up the quantities demanded by the survey respondents.Plot the demand curve

In order to estimate the market demand for the smart watch, the analysts can use a sample of the population. From the sample they can survey some customers. The results of the survey will give them an idea of the demand which they can then add up to find the total quantity demanded.

They should then scale up the quantities to enable them apply it to the wider population. Using this information they can then plot market demand.

2. Two important factors

c. existing competition in the market - The competition in the market will let them know how much potential market share they have and how much they can charge based on the amount that the competitors are charging. d. consumer demographic information - by analysing demographic information, the analysts can better ascertain the demand for their products based on important demographic data such as income status.

The existing competition in the markets and the consumer demographic information. Thus the options C and D are correct.

What is the market demand curve ?

The curve is the summation of the individuals demand curves and shows the quantity demand of the good for all individuals the varying prices.

For estimating the demand the four steps include, the survey customer, adding the total quantity demanded by the customers at each price point, then scale up the quantities that are demanded by the survey respondents, and; last plot the demand curve.

Find out more information about the team of analysts.

brainly.com/question/26396953.

Class tracking is used to categorize income and expense transactions from different sectors. What are 2 options for assigning Classes?A. Assign one class to each row in a transaction. B. Assign a class in Bill transactions only. C. Assign one class to an entire transaction. D. Assign a class in Sales Invoices only.

Answers

Answer:

A. Assign one class to each row in a transaction.

C. Assign one class to an entire transaction.

Explanation:

You can use class tracking in QuickBooks to categorize sales and expenses according to different locations, classes or even divisions. E.g. if you are a retailer, you can classify your sales by classes like men's, women's and children clothes. Or you can also track your sales by online sales or sales made on a brick and mortar location.

You can also assign one class to an entire transaction in order to determine if it resulted in a gain or a loss.

How do financial managers tend to value all assets in the same terms?a. By evaluating cash flowsb. By qualifying cash flowsc. By interpreting cash flowsd. By estimating cash flows

Answers

Answer:

a. By evaluating cash flows.

Explanation:

In Economics, an asset can be defined as any resources of economic value or items of monetary value that is being owned by an individual, country or business organization to generate income and derive benefits from.

Generally, assets can be classified broadly into four (4) categories and these are; capital assets, fixed assets, intangible assets, and financial assets.

Financial managers tend to value all assets in the same terms by evaluating cash flows.

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three (3) main components of the cash flow; investing, operating and financing.

8. Cracked Mirror, a local rock group, contracts to play for your high school prom. A week before the

dance, the group cancels its appearance. A teacher finds out that the band has instead booked a

concert elsewhere at the same time as the prom that will pay them $800 more. If you sue the band

for damages, what would be an appropriate amount and why?

Answers

Answer: The amount of money that they were paid for the high school prom. This is because that's the amount that has been sent on the band.

Explanation:

From the question, we are informed that Cracked Mirror, a local rock group, contracts to play for your high school prom and that a week before the

dance, the group cancels its appearance.

We are further told that a teacher finds out that the band has instead booked a

concert elsewhere at the same time as the prom that will pay them $800 more.

Based on the above information, if the band for damages, the appropriate amount would be the amount that they were paid for the high school prom. This is because that's the amount that has been sent on the band.

A car owner found that her monthly cost of driving her car depends on the number of miles she drives. She calculates that if she drives 320 miles per month, her monthly cost is $270. If she drives 400 miles per month, her monthly cost is $297. Assume that the monthly cost, C, of driving the car is a linear function of the number of miles, d, she drives in a month.
The formula for the monthly cost, C, of driving the car as a function of the number of miles, d, she drives in a month, is

Answers

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How many t-shirts would you recommend George order: 5,000, 7,500 or 10,000?

Answers

Answer:

10,000 t-shirts

Explanation:

Ordering 10,000 t-shirts will be adequate for George as this will increase his sales and profits and not only this he will also be getting discount on the purchase of the t-shirts. If any t-shirts are left they can be sold for a lower price to its regular customers or may be sold to another shopkeeper who sells lower priced t-shirts.

Pioche Company is considering selling a "premium" version of one of its products. The following information is available. The additional processing costs are the costs needed to transform the units from "standard" to "premium."Number of units produced 100,000Selling price of "standard" units $10 per unitAdditional processing costs $500,000Selling price of "premium" units $17 per unitBefore any additional processing costs, the total production cost for the 100,000 units is $900,000. What will be the change in Pioche Company's net income if the company decides to sell a "premium" version of this product?A- Decrease of $400,000B- Increase of $200,000C- No changeD- Decrease of $200,000E- Increase of $100,000

Answers

Answer: B- Increase of $200,000

Explanation:

The extra revenue that will be gained if the company sells premium units will be;

= Premium price - normal price

= 17 - 10

= $7

There are 100,000 unit so the extra revenue is;

= 7 * 100,000

= $700,000

The increase in Net income will be;

= 700,000 - additional processing costs

= 700,000 - 500,000

= $200,000

In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owners fail to take into account when they began selling the lingerie?

Answers

Answer:

a. the sociocultural segment

Explanation:

Since in the question it is mentioned that the retail store is opened that deals in dancewear for children and adults. Also, it became successful for five years but after that in the local newspaper it makes an expose that it was selling briskly to a specific clientele with respect to the scanty lingerie due to which it lost most of its customers and therefore it is closed

So in this given situation, it is a sociocultural segment as the company's wants to take care of the society along with its business or there should be a corporate social responsibility. Also the trust of the customers, goodwill cannot bring back, etc

Therefore the correct option is A.

Performance management:______________.a. Requires the courage to have difficult conversationsb. Cannot be accomplished well without good informationc. Means providing concrete exemplars to calibrate subjective perceptionsd. Should require collecting information from different sources and perspectivese. All of the above

Answers

Answer:

e. All of the above

Explanation:

Performance management is an activity that is done by management in the entire company. The entire process starts from collecting good quality information about the set standards and the actual performance.

When the management chooses to have some difficult conversations that is about areas which are not considered to improve they tend to increase the scope of improvement in those areas also.

This entire process requires huge co-operation from the entire business unit, employees, workers, and entire staff.

The business should always be run as a team task. Further the management shall describe the entire work to each team properly. And broader the information areas, more advanced performance will be regulated and better scope of improvement will be observed.

Thus, all the stated statements are true and correct about performance management.

A group of students organizing a protest march would be an instance of ________ speech.
A) limited protected
B) prohibited
C) unprotected
D) fully protected

Answers

Answer:

C) unprotected

Explanation:

Unprotected explains that when an individual is not feeling safe and want to be stay from the harm or injury by another person.

Therefore according to the given situation, a group of students conduct a march for protest for the purpose of unprotected speech so that everyone should aware about their safety.

So, as per the above explanation the correct answer is c.

Salesforce case assignment rules are based on elapsed time.a) trueb) false

Answers

Answer:

b) false

Explanation:

Salesforce case assignment deals with a company's lead generation strategies which can either be based on manual operations or automatic processes. For example, Web to Case strategy, Email to Case technique, On-Demand Email to Case system approach, etc.

Consequently, Salesforce case assignment rules run instantly, oftentimes on case creation and are not time-based

Hence, the correct answer is FALSE

The MEC Company has two divisions: the Computer division and the Printer division. Cost and revenue information for the two divisions for the year is as follows: Computer Printer Division DivisionRevenue...................................................................... $1,100,000 $750,000Fixed costs:Costs unique to each division........................................ 450,000 375,000Costs allocated by corporate headquarters.................... 50,000 70,000Variable cost per unit.................................................... 7 6Unit sales of each division’s product.............................. 75,000 52,000Prepare a segment margin income statement showing each division’s contribution and segment margins and the overall company profit.Segment Income StatementTotal Company Computer Division Printer DivisionRevenue $1,850,000 $1,100,000 $750,000Variable Costs - 837,000 - 525,000 - 312,000Contribution Margin 1,013,000 575,000 438,000Traceable Fixed Costs - 825,000 - 450,000 -375,000Division (Segment) Margin 188,000 125,000 63,000Common Fixed Costs - 120,000Net Income $ 68,000How did they get common fixed costs?

Answers

Answer:

Segment Income statement

Explanation:

In segment reporting, common costs were not allocated. Both the segments have a positive margin which is covering all its variable cost and contributing towards the  common fixed cost but excluding common fixed cost  which is non-traceable and are allocated to the segment.

Segment Income Statement

                                             Computer Division  Printer Division Total

Revenue                                     $1,100,000               $750,000     1850,000

Variable cost                              (525,000)                 (312,000)      837,000

Contribution margin                   575000                    438000       1,013,000

Costs unique to each division   (450,000)                 (375,000)     825,000

Segment Margin                          125,000                   63,000         188,000

Fixed Cost                                    (60,000)                  (60,000)     120,000

Net Income                                    65,000                     3,000         68,000

If common fixed cost is fixed by 50,000 and 70,000 for computer and printer division respectively then

Segment Margin                            125,000                  63,000       188,000

Common fixed cost                       70,000                   50,000        120,000

Net Income                                     55,000                   13,000          68,000

Presented below is the basic accounting equation. Determine the missing amounts. Assets = Liabilities + Owner’s Equity
(a) $80,000 $59,000
(b) $ $47,000 $65,000
(c) $88,000 $ $54,000

Answers

Answer:

a. $21,000

b. $112,000

c. $34,000

Explanation:

Based on the placements of the $, i am assuming that the missing amount in :

a. is  Owner’s Equity

b. Assets

c Liabilities

a.  $80,000 =  $59,000 + Owner’s Equity

Owner’s Equity = $80,000 -  $59,000 = $21,000

b. Assets = $47,000 $65,000

Assets = $112,000

c. $88,000 = Liabilities + $54,000

Liabilities = $88,000 - $54,000 = $34,000

The two types of package labeling in common usage today are:a. government-mandated and seller-controlledb. functional and persuasivec. motivational and requiredd. informational and persuasivee. promotional and nonpromotional

Answers

Answer: Informational and persuasive

Explanation:

Package labelling is simply the display of information regarding a product.

The two types of package labeling in common usage today are informational and persuasive. It should be noted that for persuasive labeling l, the focus is on the logo or on the promotional theme, while for the information labeling, it is done to enable the consumers make selections regarding product which they're satisfied with.

The types of resources needed by a business are financial, physical, and labor resources.
a) true
b) false

Answers

Answer:

a. True

Explanation:

The above is true because financial resources are needed to enable a business meet up with its daily activities in terms of funding. Also, physical resources are buildings, machineries and assets in general which are required to carry a business daily operations. The labor resources, which is the most important resources are the workforce that carry out the day to day operations of a business.

Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed in 2021. In addition, Primo performed services worth $40,000 in 2022, which will not be collected until 2023. Primo Industries also paid $72,000 for expenses in 2022. Of the amount paid, $30,000 was for expenses incurred on account in 2021. In addition, Primo incurred $42,000 of expenses in 2022, which will not be paid until 2023.

Required:
a. Compute 2022 cash-basis net income.
b. Compute 2022 accrual-basis net income.

Answers

Answer:

a.

Net Income for 2022 = $33000

b.

Net Income for 2022 = $36000

Explanation:

a.

The cash basis accounting follows that all the transactions should be recorded in the period in which cash is either received or paid out as a result of that transaction rather than in the period to which they relate to.

Thus, the Net Income for 2022 under cash basis will be,

Cash Receipts in 2022

Collections from customer           105000

Less: Cash Payments in 2020

Expenses paid                                (72000)

Net Income                                     33000

b.

Under accrual basis, the transactions should be recorded in the period to which they relate to rather than in the period when cash is received or paid out.

Thus, net income for 2022 under accrual basis will be,

Revenue 2022 = 105000 - 25000 + 40000   = $120000

Expenses 2022 = 72000 - 30000 + 42000   = $84000

Net Income = 120000 - 84000  =  $36000

a. Net Income for 2022 cash-basis net income. = $33000

b. Net Income for 2022   accrual-basis net income. = $36000

a. The Net Income for 2022 under cash basis is:

Cash Receipts in 2022

Collections from customer           105000

Less: Cash Payments in 2020

Expenses paid                                (72000)

Net Income                                     33000

b. The net income for 2022 under accrual basis is:

Revenue 2022 = 105000 - 25000 + 40000   = $120000

Expenses 2022 = 72000 - 30000 + 42000   = $84000

So,

Net Income = 120000 - 84000

=  $36000

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On December 1, 2017, Derrick, Inc., pays $800 to lease a copier for use in its corporate offices during the month of December.
Note: Enter debits before credits.
Date General Journal Debit Credit
Dec. 1
Record entry Clear entry View general journal

Answers

Answer:

Dr Rent Expense ($800)

Cr Cash ($800)

Explanation:

Based on the information given we were told that the company pays the amount of $800 on

which was use to lease a copier for their corporate offices this means that we are going to record the Journal entry by Debiting Rent Expense with the amount of ($800) and Crediting Cash with the same amount of ($800).

Dr Rent Expense ($800)

Cr Cash ($800)

A corporation reports the following year-end balance sheet data. The company's equity ratio equals: Cash $ 58,000 Current liabilities $ 93,000 Accounts receivable 73,000 Long-term liabilities 44,000 Inventory 78,000 Common stock 118,000 Equipment 163,000 Retained earnings 117,000 Total assets $ 372,000 Total liabilities and equity $ 372,000a. 0.37 b. 2.25 c. 0.58 d. 0.63 e. 1.41

Answers

Answer:

Option D. 0.63

Explanation:

Equity ratio can be calculated by dividing Total equity and total

assets as given in the question

DATA

Total assets = $372,000

Total Equity and liabilities = $372,000

Solution

Total equity = total assets - total liabilities

Total equity = $372,000 - $93,000 - $44,000

Total equity = $ 235,000.

Equity Ratio = Total Equity / Total Asset.

Equity Ratio = $ 235,000 / $ 372,000

Equity Ratio = 0.63.

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