It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have? $76,342 $18,334 $54,342 $12,314 Multiple Choice Question 59 Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145.
The higher the ratio the more assurance exists that the retirement of current liabilities can be made. The current ratio measures the margin of safety available to cover any possible shrinkage in the value of current assets. Normally a ratio of 2 to 1 (2.0) or better is considered good. Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business.
2.0 points) I would choose to use Bank of America because one my family has used it for years and they cash most checks even if you don’t have an account with them. Also they are pretty much any were in the states. 2. Visit the website of a second large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. a.
This action will help the company down the road as fewer liabilities will result in less cash outflow, and place the company in a position to manage through the construction downturn. Another upside in the balance sheet was that The Home Depot has reported a $63 million dollar increase in stock holder´s equity. This information will be used by potential lenders or investors to determine if this company is worth the investment. In this case, it appears that The Home Depot would be a good credit risk, based on the latest
A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness. If he feels that the investment in new manufacturing equipment will help increase profits and can take on the extra liability, then he should buy Smithon. His debt –to-equity ratio will rise and may cause him to have a hard time getting money to finance his company. But with a two year loss he is keeping his taxable income down and may be able to show investors that things are going to turn around when all operations are working together and
CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies. EBIT is "capital structure neutral" and is therefore a more appropriate way of comparing the earnings of different companies than net income
Most millionaires live well below their means. That is precisely why they are millionaires. Most people who earn high incomes are not rich, and they fail to accumulate any lasting wealth. They spend their money as fast as they earn it. In order to accumulate wealth, the authors suggest that people need to play “good offense.” You must budget, budget, and budget.
Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower.
With a low Balance transfers of 4.99% pa for up to 6 months. This card does have an annual card fee of $150 and other fees may apply if you want to apply for Personal banking, Business banking and International Trade. A Velocity NAB Gold Card account has two cards attached to it. The American Express card gives you maximum points earning and the Visa card gives you added worldwide acceptance. Every time you make a purchase with either card, you earn Velocity Points.
Q1) Which of the following statements is CORRECT, holding other things constant? (a) Firms whose assets are relatively liquid tend to have relatively low bankruptcy costs, hence they tend to use relatively little debt. (b) An increase in the personal tax rate is likely to increase the debt ratio of the average corporation. (c) If changes in the bankruptcy code make bankruptcy less costly to corporations, then this would likely reduce the debt ratio of the average corporation. (d) An increase in the company's degree of operating leverage is likely to encourage a company to use more debt in its capital structure.