ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is P80,000. If ESS Company's debt-to equity ratio is 032, Its total long- term assets must equal: A P625,000 8. B. P745,000 C P825,000 D. P695,000
Q: In computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process…
A: Calculating manufacturing cost per equivalent unit: FIFO method: Only the current period cost is…
Q: e just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door ope The…
A: Activity variances are based on Budgeted amounts at the planned level and budgeted amounts at the…
Q: $40,000 6,000 Net income Depreciation 2,000 (800) 1,800 8,000 Increase in accounts receivable…
A: Net cash provided by Operating activities = Net Income + Depreciation expense - Increase in accounts…
Q: $600 per year for 10 years at 12%. $ $300 per year for 5 years at 6%. $ $600 per year for…
A: Solution Concept Ordinary annuity is the annuity which is received at the end of the period Annuity…
Q: Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid…
A: Formula: Depletion rate per ton = (Cost of the Quarry - Residual value) / Estimated total reserves…
Q: On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally…
A: As per the indirect method of preparation of statement of cash flows, net income is adjusted for…
Q: Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per…
A: The contribution margin is calculated by deducting the variable cost from the sales revenues of the…
Q: ABC Corporation granted by the government to operate a franchise with their respective receipts for…
A: Franchise grantees: Gas and water utilities Radio and television broadcasting companies whose…
Q: On March 2, 2022, Gumamela Corporation issued 4,000 shares of 6% cumulative P100 par value…
A: Share warrant is a acknowledgment or document which issued by the company under its common seal,…
Q: Explain and what is the calculation of the following. Tax rates (formula) HELP repayment amount…
A:
Q: Juan Company purchased four convenience store buildings on January 1, 2015 for a total of…
A: An asset is impaired if carrying amount of an asset is greater than its recoverable amount. Carrying…
Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…
A: A transaction is a business engagement that has an economic effect on a financial statement and is…
Q: At the beginning of the current period, Ayayai Corp. had balances in Accounts Receivable of $300,000…
A: For credit sales we should debit Account receivable account and credit sales revenue account.
Q: Hamrick Company employs a standard cost system in which direct materials inventory is carried at…
A: Formulas: Direct Materials Spending Variance = Standard material cost - Actual material cost Direct…
Q: Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar…
A: Given: - Particulars Amount ($) Book value 37,500,000 Production during 2020: Oil 19,000,000…
Q: , taxes OMR ('000) 3,250 Share Capital 17,750 Statutory Reserves 38,750 Profit (previous year) 2,400…
A: Financial Statements: The treatments of all the transactions are done in journal records and then…
Q: The amortization of prior service costs will affect the pension expense for the period along with…
A: solution for above requirement are as follows
Q: On January 1, 2021, Gringo Company had capitalized cost of P5,000,000 for a new computer software…
A: Amortization of Intangible Assets: The practice of deducting the cost of an intangible asset over…
Q: Prepare the journal entry on the books of the partnership to record the withdrawal of Stine
A: Journal Entries a. Stin capital a/c Dr. 60000 Gregg capital a/c Dr. 8000 Baker capital a/c…
Q: Ludwig Company's prepaid rent was $9,000 at December 31, 2020, and $13,000 at December 31, 2021.…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: GIVEN: Taxpayer is a proprietary educational institution. Taxable period is 2021. • Financial data:…
A: Income Tax: - Income Tax is the tax that is imposed by the government on the income generated by a…
Q: iability multiplied by useful life divided by total fair value of the asset. FV of rights retained…
A: Leaseback refers to the form of arrangement that sold an asset and also has an option to lease it…
Q: 32.3A Show the journal entries needed to correct the following errors: (a) Purchases £1,410 on…
A: Rectification entry means where some error has been done in past and we need to rectify that errors.…
Q: The following transactions occurred for the Microchip Company. 1. On October 1, 2024, Microchip lent…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Juan Company purchased four convenience store buildings on January 1, 2015 for a total of…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…
Q: Valiant Company reported the following analysis of current receivables at year-end: Trade accounts…
A: A key accounting concept is the buying and selling of things and services, with remuneration…
Q: Sherwin Company uses straight line depreciation for its property, plant, and equipment, which,…
A: Depreciation expense on property, plant & equipment is credited to accumulated depreciation…
Q: resident foreign corporation received 900,000 dividends from a domestic corporation. How much final…
A: Solution Provision applicable The dividend received by A resident foreign corporation from a…
Q: 0. Nicanor, single, received the following in 2022: Proceeds of his life insurance paid at annual…
A: Gross income refers to the income which involves the wages, retirement distributions, dividends,…
Q: 8- Which among the following is a tool of management accounting? a. Risk analysis b. All the…
A: Management accounting refers to the managing of the operations of the business. It is basically…
Q: On January 1, 2021, Golden Company acquires $400,000 of ABC Company's 10- year, 6% bonds at a price…
A: Introduction Carrying value of bond refers to face value of bond plus unamortized premium, during…
Q: QUESTION 3 Jaime Ltd manufactures and sells a small electric product to order for the computer…
A: Absorption Costing - In this costing method cost associated with the manufacturing of a product is…
Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't…
A: Revenue means the amount earned by selling the goods or services. Profit means the difference…
Q: nuary 1, 2021, Gringo Company had capitalized cost of P5,000,0 ct with an economic life of 5 years.…
A: Solution:- Calculation of carrying value of software on 31st Dec, 2021 Software value as on 1st…
Q: Is there a way you can provide an example for number 3?
A: Break-even level is computed by the company at which company has sufficient amount of revenue…
Q: Happy Inc. provided the following information: Beginning balance of Accounts receivable P5,000,000…
A: The accrual basis accounting records the revenue and expenses of the current period when they are…
Q: Correcting the Trial Balance: Near the end of the year, Alpha received $2,000 cash in advance from a…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Loren Company uses many kinds of machines in operations. The entity acquires some machines from…
A: Note: Insurance costs incurred on the machine for the transit to the destination are only…
Q: Which of the following is not one of the approaches for reporting accounting changes? The change…
A: accounting change is a change that takes place in the accounting principles, accounting estimate or…
Q: Basil Company should reported unearned premium income at the end of December 31, 2022 of?
A:
Q: How much was the gain or loss on sale of investment on January 1, 2020? a. P1,575 loss b. P1,575…
A: Company can control another company by having the control which is significant to control and…
Q: On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated…
A: Gain is the amount of money earned on the sale of assets.
Q: 40. Statement of Financial Position 2021 2022 2023 Assets Current Assets Cash and…
A: For corporations, 40% OSD (optional standard deduction) is from Gross income. Gross income is…
Q: On January 1, 2017, the llocos Norte Corporation purchased the business of its competitor in a…
A: The amount of money spent on developing and selling goods and services, as well as acquiring assets,…
Q: Sales Cost of Sales Gross Profit Operating Expenses (b) Net Income P75,000 (a) P40,000 P17,000
A: Formula used for Cost of sales: Cost of sales = Sales - Gross profit.
Q: hen financial income is higher than taxable income and no permanent differences, the company most…
A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…
Q: GIVEN: • Taxpayer is a non-stock and non-profit educational institution. • It has been granted with…
A: The correct option with proper explanation are as follows
Q: On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated…
A: When bonds were classified based on business model of collecting contractual cash flows and to sell,…
Q: The difference of gross investment in the lease and net investment in the lease of the lessor is?…
A: Solution: Gross investment in lease: The sum of 1. The lease payments receivable by a lessor under a…
Q: 6. Gain realized on a like-kind exchange is excluded from income in all of the following…
A: correct answer with explanation are as follows
Step by step
Solved in 2 steps
- Al Kharif Company's total of short term liabilities is OMR 320,000 and total of long term liabilities is OMR 260,000. Its total assets are OMR 760,000. The Debt to total funds ratio of the company will be: a. 0.812 b. 1.310 c. 0.342 d. 0.763Consider the following data for the firms Acme and Apex: Equity ($ million) Debt ($ million) ROC Cost of Capital Acme 290 145 17% 9% Apex 1,450 483 15% 10% a. Calculate the economic value added for Acme and Apex (round to 2 decimal places). Economic value added for Acme $? million Economic value added for Apex $? million b. Calculate the economic value added per dollar of invested capital for Acme and Apex (round to 2 decimal places)? Economic value added for Acme per dollar Economic value added for Apex per dollar13. A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities makes a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. increase and decrease, respectively b. both increase c. both decreased. remain the same and decrease, respectively
- Jordan Manufacturing reports the following capital structure: Current liabilities P100,000 ; Long-term debt 400,000 ; Deferred income taxes 10,000 ; Preferred stock 80,000 ; Common stock 100,000 ; Premium on common stock 180,000 ; Retained earnings 170,000. What is the debt ratio? A. 0.48 B. 0.49 C. 0.93 D. 0.96balance sheet 20201231 (mkr): fixed assets 9540 current assets 2630 s: a assets. 1280 equity 2070 long loans 5650 short-term. liabilities. 4360 s: a EQ and liabilities 12080 Let us assume that a new share issue is carried out where the owners invest SEK 1,400 million. The money is then used to repay long-term loans of SEK 900 million and short-term liabilities of SEK 400 million. Your task is to fill in the amounts for the following items in the balance sheet after the new share issue and associated transactions described above have been completed: S assets:mkr Equity:mkr Short loans:mkrIf NUBD Co. requires a minimum return on its investments of 15%, what is their residual income? A. P1,250,000 B. P4,500,000 C. P6,750,000 D. P750,000
- Consider the following data for the firms Acme and Apex: Acme Apex Required: Equity Debt ($ million) ($ million) 210 1,050 105 350 ROC Cost of Capital (*) (%) 17% 9% 15% 10% a-1. Calculate the economic value added for Acme and Apex. a-2. Which firm has the higher economic value added? b-1. Calculate the economic value added per dollar of invested capital for Acme and Apex. b-2. Which firm has the higher economic value added per dollar of invested capital? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Calculate the economic value added for Acme and Apex. Note: Enter your answers in millions rounded to 2 decimal places. Economic value added for Acme million Economic value added for Apex millionAlpha Corporation has average annual free cashflows to the equity holder and to the firmof P3,000,000 and P3,350,000 respectively. Assuming that the weighted average cost ofcapital and actual return of on assets is 16.75% while the market return on Alpha's debt is7%, what is the value of its equity? a. P34,358,974.36 b.P15,000,000.00 c.P17,910,447.76 d.P20,000,000.00Can you explain the information below market value added (MVA) analysis and interpretation of results below. Market Value of Equity:$133,341,000,000.00 Plus: Market Value of Debt:$13,677,000.00 Equals: Market Value of Firm:$133,354,677,000.00 Minus: Total Invested Capital:($1,944,100.00) Equals: MVA$133,356,621,100.00
- 21. Kinsella Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total long-term debt to total equity ratio? a.0.375 b.0.125 c.0.75 d.0.25Luxembourg Port Co. has assets of €100 million (including €10 million in cash) and debt of €20 million. If the company borrows an additional €10 million to repurchases €20 million of stock, what is the new debt-to-equity ratio?A Corporation is planning to loan P20M at an effective interest rate of 10%. The company pays income tax at a rate of 30%. What is the cost of debt capital? a. P140,000 b. P200,000 c. P540,000 d. P600,000