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2 years ago

A company has the following ratios:

Business

1 answer:

Illusion [34]2 years ago

8 0

Answer:

The company has current ratio almost half than the industry average. This is an indication that the company has lesser current assets than industry average. The ability of the company to meet its short term obligations is not suitable as the other companies in the industry are maintaining double current ratio. The ratio should never go below 1 as if it does the company may face its operational financing and working capital management issues.

The debt to equity ratio is significantly higher than the other companies of the same industry. The industry average is 4 whereas the company has ratio 20. This is significantly higher which indicates that there is heavy burden of debt on the company. High debt/ equity ratio indicates high risks. Investors avoid investing in such companies which have high debt/ equity ratio.

Explanation:

The company can go for equity financing as it will also help reduce its debt / equity ratio. The company will become less riskier and financing will be divided in debt and equity. The debt burden on assets will be reduced. There can be reduction in certain debt covenants. The company can use equity financing to fund its operations as well as purchase of non current assets to increase production and ultimately profitability of the company could rise.

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Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is

ANTONII [103]

Answer:

The dollar variance is -$100.

The percent variance is -20%.

Since the actual income is less than the budgeted income, the variance is unfavorable (U).

We calculate Dollar Variance as : $Actual Amount - Budgeted Income$

$Dollar Variance = 400 - 500 = 100$

Next, we calculate percent variance as :

$Percent variance = \frac{Dollar Variance}{Budgeted Income} *100$

Plugging the values in we get,

$Percent Variance = \frac{-100}{500} *100$

Percent Variance = -20%

6 0

2 years ago

When American Airlines decided to review new ideas aimed at first-class passengers on very long flights, like an ultra high-spee

Butoxors [25]

Answer:

define the problem and research objectives

Explanation:

According to my research on the marketing research process, I can say that based on the information provided within the question their first step was to define the problem and research objectives. This allows the company to come up with the right strategy for this specific situation in order to achieve their objectives.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0

2 years ago

An annuity with an infinite life is called a(n) ________. A. perpetuity B. deep discount C. primia D. option

Tasya [4]

Answer:

The correct answer is letter "A": perpetuity.

Explanation:

Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.

3 0

2 years ago

What is the maximum amount you would pay for an asset that generates an income of $ 250,000 at the end of each of five years if

Galina-37 [17]

Answer:

170,146

Explanation:

$250,000 / (1.08)5= 170,146

3 0

2 years ago

A sales associate moves from Jacksonville, Florida, to Atlanta, Georgia. The associate continues to be employed by the same brok

-BARSIC- [3]

Answer: The sales associate must notify the DBPR in writing within 60 days regarding her change in residency

Explanation:

The options are:

a. The states associate broker is required to file the change of address on her behalf.

b. The sales associate broker is not required to notify DBPR because she did not change employers.

c. The sales associate must notify the DBPR in writing within 60 days regarding her change in residency.

d. The sales associate must file an application for Georgia real estate license.

From the question, we are informed that a sales associate moves from Jacksonville, Florida, to Atlanta, Georgia. The associate continues to be employed by the same broker, who has an office in Atlanta.

Based on the scenario, the sales associate should let the DBPR be aware that he or she has moved from

Jacksonville, Florida, to Atlanta, Georgia by writing to them within 60 days regarding her change in residency.

6 0

2 years ago