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Firlakuza [10]
2 years ago
6

Debt analysis Springfield Bank is evaluating Creek​ Enterprises, which has requested a $ 3 comma 620 comma 000 ​loan, to assess

the​ firm's financial leverage and financial risk. On the basis of the debt ratios for​ Creek, along with the industry averages and​ Creek's recent financial​ statements, evaluate and recommend appropriate action on the loan request.
Business
1 answer:
stepan [7]2 years ago
5 0

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

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In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the
faltersainse [42]

Answer:

The correct answer is letter "C": an increase in the bargaining power of suppliers of a critical input.

Explanation:

Porter's Five (5) Forces is an analysis scheme created by Harvard School Professor Michael E. Porter (<em>born in 1947</em>). The ultimate goal of this analysis is to help managers set their expectations because profitability decreases as competition increases. Three of the five forces relate to industry (horizontal) participants - <em>the threat of substitutes established rivals, and new entrants</em>. The other two relate to the vertical participants - <em>the bargaining of suppliers and consumers</em>.

In the case, as airline fuel suppliers are consolidating, this would represent the bargaining of suppliers factor in Porter's theory. They could joint to decide quantities supplied or even prices.

3 0
2 years ago
A. when you create a sculpture for art, is it copyrighted? _____________ what about a poster you make on the computer for techno
strojnjashka [21]

Copyright is a tangible form of protection for intellectual property (original works including literary, dramatic, musical, artistic, ) provided by the laws of the United States. It can be published or unpublished.

The law aims to encourage the creation of art and culture by giving the authors and artists a set of exclusive rights which includes the right to make and sell copies of their works, create derivative works, and perform or display their works in public.

• A. when you create a sculpture for art, is it copyrighted? Yes, A sculpture of art can be copyrighted.

• NO. A poster you make on the computer for technology class, not an original artwork.

• Yes. As long as the dance you created in P.E. is original.

• Yes, you have to file for copyright protection.

• b. If you live until 75 years old, copyright will expire 70 years after your death.

• C. The “Fair Use doctrine”


3 0
2 years ago
A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her cos
True [87]

Answer:

The isoquants will be straight parallel lines.

Explanation:

In the given secanrio copper or bronze may be used to produce jewellery. The utility derived from use of either one is the same. They are perfectly interchangeable. Therefore copper and bronze are perfect substitutes.

The isoquant curve shows all combinations of input that can be used to produce units of output.

For goods that have perfect substitution the isoquants are straight lines that are parallel to each other. The marginal rate of technical substitution is 1, and isoquant have slope angle of 45° with each axis.

Find attached an illustration of this. So copper is a perfect substitute for bronze.

6 0
2 years ago
During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies
tia_tia [17]

Answer:

Supplies Expense  = $24,000

Supplies  = $24,000

Explanation:

given data

bought for CPA firm = $32,000

supplies on hand = $8,000

solution

we know here that when $8000 supplies available out of $32,000  

so supplier during period will be = $32,000  - $8000

supplies expense = $24000

and that is express as

     Accounts title                            Debit              Credit

    Supplies expense                     $24,000  

    Supplies                                                             $24,000

3 0
2 years ago
The employees of Eco Engineering Inc. share company-related resources among multiple computers without requiring a central netwo
nydimaria [60]

Answer: c. ​peer-to-peer (P2P) networking

Explanation:

Peer-to-Peer (P2P) networking is a method of connecting computers to each other and sharing resources without having to use a central network server.

It can be a connection between two computers close to each other, a bunch of computers connected by USB or wired connections for instance or even computers around the world via the internet.

The Employees at Eco Engineering are therefore using P2P as they are sharing resources without having to go through a network server.

4 0
2 years ago
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