Identify a company which requires significant long-term debt or equity to run their operations. Describe the type of investments the company has used and why you believe they used this form of investment. .
Identify a company which
requires significant long-term debt or equity to run their
operations. Describe the types of investments the company has used
and why you believe they used this form of investment.
Identify a company which requires significant long-term debt or equity to run their operations. Describe the...
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
Question 6 If the cost method is used to account for a long-term investment in common stock, dividends received should be credited to the Dividend Revenue account. debited to the Stock Investments account. recorded only when 20% or more of the stock is owned. credited to the Stock Investments account. Question 7 If 10% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is determined by agreement...
exercise 16-06
in its first year of operations Sheridan corporation purchased as a
long term investment available for sale debt securities costing
$68,500. December 21,2020 the fair value of the securities is $
63,650
We were unable to transcribe this imageList of Accounts CLOSE Brief Exercise 16-06 Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of...
Identify and discuss the advantages and disadvantages of one type of long-term debt. Suggest to management which type of debt should be issued to obtain $5 million. Provide a brief explanation to support your suggestion.
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .36 and a current ratio of 1.34. Current liabilities are $2,430, sales are $10,570, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s current assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current assets $ What is the amount of the firm’s net income?...
There are a few advantages and disadvantages to short term and long term investments. Long term investments are easier to risk because of the time period, however some people prefer to invest in short term investments to test the risk first. Making a decision on which method to proceed with depends on the individual or the company, its past financial activities and how much the individual or company is willing to risk. There are 4 strategic purposes for investing in...
answer please
It Further CEG Capital Inc. is a large holding company that uses long-term debt extensively to fund its operations. At December 31, the company reported total assets of $100 million, total debt of $55 million, and total equity of $45 million. In January, the company issued $11 billion in long-tem bonds to investors at par value. This was the largest debt issuance in the company's history, and it significantly increased the company's ratio of total debt to total...
Under the equity method, the dividend revenue from a long-term investment—which has an ownership of 20% to 50%—the dividend is treated as a ________. return of capital credit to current assets debit to revenue from investments dividend revenue
A firm has a long-term debt-equity ratio of 0.59. Shareholders' equity is $1.8 million. Current assets are $551,000, and total assets are $3.152 million. If the current ratio is 1.9, what is the ratio of debt to total long-term capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Debt to total long-term capital
During 2015, the company raised $370 in new long-term debt. How much long-term debt must the company have paid off during the year? WESTON ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets $ 916 $ 995 Current liabilities $ 365 $ 389 Net fixed assets 3,797 4,540 Long-term debt 1,994 2,122 WESTON ENTERPRISES 2015 Income Statement Sales $ 11,600 Costs 5,440 Depreciation 1,000 Interest paid 150