the ratio that describes the proportion of total assets supplied by creditors is A. Debt-to-equity B....
the ratio that describes the proportion of total assets supplied by creditors is A. Debt-to-equity B. Debt to total assets C. Debt to accounts receivable D. none of the above
Homework Answers
The asset of the company financed by creditors through debt is measured with debt to total assets ratio. Which is also known as Debt ratio.
Option B.
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the ratio that describes the proportion of total assets supplied
by creditors is A. Debt-to-equity B....
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed...
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
Debt ratios measure the proportion of total assets financed by a firm’s creditors. Hackworth Co. has...
Debt ratios measure the proportion of total assets financed by a firm’s creditors. Hackworth Co. has a debt-to-equity ratio of 3.00, compared to the industry average of 2.40. Its competitor Markum’s Co., however, has a debt-to-equity ratio of 4.50. Based on what debt-to-equity ratios imply, which of the following statements is true? Markum’s Co. has higher creditworthiness as compared to Hackworth Co. Markum’s Co.’s creditors face lesser risk than the average financial risk in the industry. Markum’s Co. has greater...
Debt ratios measure the proportion of total assets financed by a firm's creditors. Weghorst Co. has...
Debt ratios measure the proportion of total assets financed by a firm's creditors. Weghorst Co. has a debt-to-equity ratio of 2.60, compared to the industry average of 3.12. Its competitor Bellywood Co., however, has a debt-to- equity ratio of 2.08. Based on what debt-to-equity ratios imply, which of the following statements is true? O Bellywood Co. has a greater risk of bankruptcy than Weghorst Co. O Weghorst Co. has greater financial risk as compared to Bellywood Co. but lower than...
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets...
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets by long-term liabilities. C. long-term liabilities by total assets. D. total assets by total debt.
. The debt ratio (debt/value) is.80. Total assets are $10 million. Find equity. Find the debt-equity...
. The debt ratio (debt/value) is.80. Total assets are $10 million. Find equity. Find the debt-equity ratio A firm has a debt/equity ratio of 3.00. Find the debt/value ratio. You can assume total assets $10 million.
Total assets = $560,000, debt-equity ratio = 0.54, profit margin = 6.70%, return on equity =...
Total assets = $560,000, debt-equity ratio = 0.54, profit margin = 6.70%, return on equity = 14.60%. What are sales? A. Below S740,000 B. Between $740,000 and $750,000 C. Between $750,000 and $760,000 D. Between $760,000 and $770,000 E. Between $770,000 and $780,000 F. Between S780,000 and $790,000 G. Between $790,000 and $800,000 H. Above $800,000
The extent of financial leverage in a firm Debt ratios measure the proportion of total assets...
The extent of financial leverage in a firm Debt ratios measure the proportion of total assets financed by a firm's creditors. Cute Camel Woodcraft Company has a debt-to-equity ratio of 3.80, compared to the industry average of 3.04. Its competitor Purple Lemon Woodcrafters, however, has a debt-to-equity ratio of 5.70. Based on what debt-to-equity ratios imply, which of the following statements is true? Purple Lemon's creditors face lesser risk than the average financial risk in the industry. Purple Lemon has...
Assets Total Debt and Equity Current Assets $200,000,000 Total debt equity $220,000,000 Common stock $30,000,000 Capital...
Assets Total Debt and Equity Current Assets $200,000,000 Total debt equity $220,000,000 Common stock $30,000,000 Capital Surplus 80,000,000 Accumulated retained earnings 170,000,000 Net Fixed Asset $300,000,000 Total shareholders Equity $280,000,000 Total Asset $500,000,000 Total debt and shareholders equity $500,000,000 a) What is the debt equity ratio on book values b) Suppose the market value of the company's debt is $225 million and the market value of equity is $670million. What is the debt equity ratio based on market values? c)...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total equity is $620,000 a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
11) A firm has total debt of $1500 and a debt–equity ratio of 0.35. What is the value...
11) A firm has total debt of $1500 and a debt–equity ratio of 0.35. What is the value of the total assets? 11) ______ A) $4285.71 B) $3500.00 C) $5785.71 D) $5250.00 E) $2025.00 12) Mario's Home Systems has sales of $2820, costs of goods sold of $2160, inventory of $504, and accounts receivable of $430. How many days, on average, does it take Mario's to sell its inventory? 12) ______ A) 55.66 days B) 85.17 days C) 84.00 days D) 72.66 days E) 65.23 days
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
Debt ratios measure the proportion of total assets financed by a firm's creditors. Weghorst Co. has a debt-to-equity ratio of 2.60, compared to the industry average of 3.12. Its competitor Bellywood Co., however, has a debt-to- equity ratio of 2.08. Based on what debt-to-equity ratios imply, which of the following statements is true? O Bellywood Co. has a greater risk of bankruptcy than Weghorst Co. O Weghorst Co. has greater financial risk as compared to Bellywood Co. but lower than...
. The debt ratio (debt/value) is.80. Total assets are $10 million. Find equity. Find the debt-equity ratio A firm has a debt/equity ratio of 3.00. Find the debt/value ratio. You can assume total assets $10 million.
Total assets = $560,000, debt-equity ratio = 0.54, profit margin = 6.70%, return on equity = 14.60%. What are sales? A. Below S740,000 B. Between $740,000 and $750,000 C. Between $750,000 and $760,000 D. Between $760,000 and $770,000 E. Between $770,000 and $780,000 F. Between S780,000 and $790,000 G. Between $790,000 and $800,000 H. Above $800,000
The extent of financial leverage in a firm Debt ratios measure the proportion of total assets financed by a firm's creditors. Cute Camel Woodcraft Company has a debt-to-equity ratio of 3.80, compared to the industry average of 3.04. Its competitor Purple Lemon Woodcrafters, however, has a debt-to-equity ratio of 5.70. Based on what debt-to-equity ratios imply, which of the following statements is true? Purple Lemon's creditors face lesser risk than the average financial risk in the industry. Purple Lemon has...
SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total equity is $620,000 a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
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