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Mariulka [41]
1 year ago
9

For each item below, indicate to which category of elements of financial statements it belongs.

Business
1 answer:
valina [46]1 year ago
7 0

Answer: (a) Retained earnings = Equity.

(b) Sales = Revenues.

(c) Additional paid-in capital = Equity.

(d) Inventory = Assets.

(e) Depreciation = Expenses.

(f) Loss on sale of equipment = Losses.

(g) Interest payable = Liability.

(h) Dividends = Dividends payable are a liability. Dividends paid are a decrease in the accumulated results of the company as they are distributed to the owners.

(i) Gain on sale of investment = Gains.

(j) Issuance of common stock =  are investments by the owners that become part of the capital.

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A heat integration project results in saving 5 MM Btu/h of heating utility and 14 MM Btu/h of cooling utility. The prices of hea
guapka [62]

Answer:

9.24 yr

Explanation:

The payback period refers to the amount of time it takes to recover the cost of an investment. In order to find a payback period we need to go through some calculations first  

Annual savings =  5 MM Btu/hr x 8,000 hr/yr x $4/MM Btu x 14 MM Btu/hr x  8,000 hr/yr x $7/MMBtu

Annual savings = $0.944 MM/yr

TCI = \frac{4.0 MM}{0.85}

TCI = $4.7 MM

Depreciation - Annualized fixed cost = \frac{[4.0 - 0] }{10}

Depreciation - Annualized fixed cost = $0.4 MM/yr

Total cost annualized = Annualized fixed cost + Annual operating cost

Total cost annualized = 0.4 + 0.5

Total cost annualized= 0.9 MM/yr

Annual net (after-tax) profit = Annual income - Total cost annualized x (1-Tax rate + Depreciation

Annual net (after-tax) profit = $0.944 MM/yr - $0.9 MM/yr x  1 -0.25 + $0.4 MM/yr

Annual net (after-tax) profit = 0.433MM/yr

Payback period = \frac{4.0}{0.433MM/yr}

Payback period = 9.24 yr

5 0
1 year ago
Walter Industries’ current ratio is 0.5. Considered alone, which of the following actions would increase the company’s current r
MissTica

Answer:

a. Borrow using short-term notes payable and use the cash to increase inventories.

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities  

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.

4 0
2 years ago
Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. A firm may operate
Art [367]

Answer: A firm may operate in multiple industries.

Different firms may use different accounting practices.

Explanation:

Ratio Analysis as you probably know is a very useful tool in financial analysis. It works by comparing ratios based on items in the financial statements of a company to measure certain things such as the Company's Liquidity, Profitability and the like.

It does have certain drawbacks though such as,

A firm may operate in multiple industries

When a firm is operating in multiple industries. Comparing ratios is not a simple task. Different industries record profits and costs differently and just because a ratio is held in high esteem on one company does not mean it is good in another thereby making comparison based on ratios alone quite cumbersome.

Different firms may use different accounting practices

Now if different companies use different Accounting practices, you might find that ratios cannot be straightforwardly compared because different types of figures were used by the different companies. For instance, some companies might use a Straight Line Depreciation method as opposed to a Reducing Balance method which will have varying effects on income.

4 0
2 years ago
Colorado traffic laws are revised each year by ?
Eduardwww [97]
C colorado general assembly
5 0
2 years ago
Read 2 more answers
Which of the following is not associated with firms following the global standardization strategy? A. Low pressures for local re
zvonat [6]

Answer:

The correct option is D. Customize product offering and marketing strategy to local conditions

Explanation:

Global standardization strategy refers to the ability to use a particular standard of marketing internationally. In other words, it's the ability for an organization to use the same marketing strategy from one country to another country, and across various cultures.

What this means is that an organisation using the global standardization strategy will treat the world as largely one market and one source of supply with little local variation.

Therefore, the firms following the global standardization strategy will not Customize product offering and marketing strategy to local conditions .

4 0
2 years ago
Read 2 more answers
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