If equity increased by $15 000 and total liabilities increased by $35 000 over a period, by how much must total assets have changed? a. $50 000 decrease b. $20 000 increase c. $20 000 decrease d. $50 000 increase

If equity increased by $15 000 and total liabilities increased by $35 000 over a period, by how much must total assets have changed? a. $50 000 decrease b. $20 000 increase c. $20 000 decrease d. $50 000 increase

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3%…

A: Debt ratio measure the firm's total liabilities as a percentage of its total assets.

Q: A2 please help.....

A: The year-to-year percentage change is a common way to express the relative change in a financial…

Q: Use the financial statements of Helfer Sports Inc. to find the information below for Helfer, (Use…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Current Asset 120 000 Cash…

A: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets -Inventory)…

Q: Consider the following timeline: Date Cash flow ? A. $472 B. $944 $100 C. $600 OD. $614 2 $200 3 Å…

A: Cash Flow for Year 1 = cf1 = $100Cash Flow for Year 2 = cf2 = $200Cash Flow for Year 3 = cf3 =…

Q: Calculate Return on Total Assets each year separately.

A: Return on Total Assets= EBITAverage Total Assets

Q: d. Ratio of liabilities to stockholders' equity: 20Y8 20Y7 20Υ6 20Y5 20Y4 2. Refer to the selected…

A: Ratio of liabilities to stakeholders' equity shows the ratio of total debts or financial liabilities…

Q: What is the Internal Rate of Return for the following net annual cash flows? Period Cash flows Today…

A: Internal rate of return (IRR) is the rate at which present value of cash inflows will be equal to…

Q: 38 - What are the receivables that can be collected in a year or more than the normal operating…

A: A fixed Asset is the one which is owned by the Company and used to produce or provide the products…

Q: 1. Compute the IRR for the investment represented by the following cash flow table: Year 0. 1 3 4 6.…

A: An internal rate of return or IRR is referred to as the metric, which are used in the financial…

Q: Year Cash Flow 0 (8,100.00) 1 3,600.00 2 3,900.00…

A: Profitability index (PI) is a measure of capital budgeting process. It is calculated by dividing…

Q: esented here are summarized data from the balance sheets and income statements of Wiper Inc.:…

A: Ratio Analysis -Ratio Analysis is a important technique to analyze the two years of financials of…

Q: Year Cash Flow 0 −$ 9,300 1 5,700 2 3,000 3 4,800 a. What is the profitability index for the cash…

A: Profitablity index shows how much the project earns on each dollar.Profitability index = PV of all…

Q: What is the IRR of the following set of cash flows? Year Cash Flow 0 –$9,531 1 4,200 2 5,500 3 4,400

A: Year Cash flow 0 -9531 1 4200 2 5500 3 4400

Q: Use the financial ratios of company A and company B to answer the questions below.…

A: Note: Since there are multiple questions posted, we will answer first three questions. If you want…

Q: Find the return on equity of a business having a return on sale of 15% with an asset turnover of 1.5…

A: Return on equity can be calculated by dividing net income by equity Return on equity(ROE) =Net…

Q: Year $51,129 84,836 ormation, what is the amount and percentage of increase or decrease I answers as…

A: Given information : Account payable Current = $51,129 Account payable Previous year = $74,100…

Q: Current ratio Quick ratio Inventories turnover period*

A: Introduction: Return on capital employed(ROCE): ROCE – It is a financial ratio and it is used to…

Q: If Sadaf Oman Company's total liabilities increased by RO 29,000 during a period of time and its…

A: Equity + Total liabilities = Total Assets Equity = Total Assets - Total liabilities

Q: Year Cash Flow 0 −$8,200 1 2,500 2 4,100 3 3,900 What is…

A: Profitability index- It is an index that gives a measure of a project's attractiveness. It is…

Q: Based on the information above, the capital gains yield for the coming year is closest to A. 9.08%.…

A: The required return on a stock consists of the dividend yield and capital gains yield. The capital…

Q: Category. Prior Year Current Year Accounts payable Accounts receivable 320,715 397,400 Accruals…

A: The formula that can be used for finding the ROE when number of shareholder's are not given:

Q: H ($8,500,000) $3,100,000 19.33% 5 + $3,100,000 Ŝ ($3,900,000) $4,850,000 55 CFg $2,950,000

A: MIRR is modified of internal rate of return in which it is assumed that reinvestment rate is…

Q: What is the payback period for the following set of cash flows? Year 0 1 2 3 4 Cash Flow -$ 6,100…

A: Cash Flow for Year 0 = cf0 = -$6100Cash Flow for Year 1 = cf1 = $2900Cash Flow for Year 2 = cf2 =…

Q: Current Position Analysis The following data were taken from the balance sheet of Albertini Company…

A: a. Sr No Ratio Current Year Previous Year 1 Working Capital =$1,288,000 =$882,000 Current…

Q: Exhibit 1: Industrial Comparative Ratio Analysis, Year 20XX Return on Capital (%) EBITDA Margin (%)…

A: Two unrelated questions appear on the screen. The first question relates to a put option. However it…

Q: Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING…

A: Debtors Turnover Ratio = Net Credit Sales/ Average Accounts Receivable

Q: What is the value in year 7 of a $2,700 cash flow made in year 8 when interest rates are 11.8…

A: Presents value represents the present market value of an investment.

Q: Consider the table given below to answer the following question. Year Asset value Earnings Net…

A: Present value refers to the method of capital budgeting used for evaluating the viability of the…

Q: Problem No.1. Trading Securities At December 31, 2017, BAGCPARS Company properly reported the…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: What is the present value of the following set of cash flows at an interest rate of 8% p.a.…

A: The concept of present value states that a sum of money today is worth more than the same sum in the…

Q: 6.7 Determine the rate of return per year for the cash flows shown below. Use (a) tabulated factors,…

A: Given Years =1,2,3, and 4 Cash flow in $ = -80000, 9000, 70000, 30000 We are required to prepare a…

Q: Consider a cash flow and interest profile as shown: The worth at the end of Year 3 of these cash…

Q: a-2. What is the trend in the net income to total assets ratio? O Strong upward movement O Strong…

A: The question is related to Rstio Anaysis.Ratio of Net Income to total assets is calculated with the…

Q: What is the present value (as at year 0) of the following cash flows, given an interest rate of 8%…

A: Present value is the current worth of future cashflows discounted at a given rate.

Q: Current Quick Selected Ratios for RR RR 1.75 0.92 TL/Assets Turnover of Cash DSO(365-day year) Inv.…

A: According to the given question, we are required to explain the inaccuracy under the RR column.…

Q: Horizontal Analysis The comparative temporary investments and inventory balances of a company…

A: Comparative balance analysis is used to compare the balance of two or more periods. It is helpful…

Q: Year 0120 3 Cash Flow -$9,900 2,300 2,900 5,200 a. What is the profitability index for the cash…

A: The profitability index is a valuation ratio that provides a measure that can be analyzed to…

Q: Assets Market Rates Value Cash $150 Loans $675 T-Bonds $175 Total $1,000 10% 5% Duration Liabilities…

A: The weighted average duration of assets is a financial metric used to measure the interest rate…

Q: Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier…

A: As per DuPont equation, the return on equity is

Q: based on the ratios what can you say about the company's liquidity? Is it liquid enough to convert…

A: Liquidity is referred as an ease with an asset or security, which gets converted into the ready cash…

Q: Cash Year Flow -24 9,600 4,700 2 5,300 3 2,200 a. What is the profitability index for the cash flows…

A: Profitability index= PV of cash inflows/ PV of cash outflows

Q: A return on assets of 5.15% means that a company is earning:

A: Answer: Option b.

Question

If equity increased by $15 000 and total liabilities increased by $35 000 over a period, by how much must total assets have changed?

$50 000 decrease

$20 000 increase

$20 000 decrease

$50 000 increase

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please help me understand this :) please thank you :)
Sh7
Complete a and b thank you
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %18. Cash Flow Year 0 1 2 3 4 5 6 Select one: a.0.3073 b.0.2988 c.0.2565 d.0.2638 e.0.3491 f.0.2783 -3000 2000 4000 -1000 3000 4000 -5000 9000
Year Cash Flow 0 -$ 17,400 1 9,700 8,600 5,100 2 3 a. What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Profitability index b. Profitability index c. Profitability index
Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers to 2 decimal places except $ amounts.) Income Statement Sales Cost of goods sold Depreciation Selling and administrative expenses EBIT Interest expense Taxable income Taxes Net income Balance Sheet, Year-End Assets Cash Accounts receivable Inventory Total current assets i Fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Short-term debt Total current Liabilities. Long-tern bonds Total liabilities 2020 $ 5,630,000 2,936,000 289,400 1,550,000 $ S $ 854,600 138,000 716,600 320,300 396,300 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity S 2020 48,400 S 649,000 481,800 $1,179,200 $1,634,600 3,060,000 3,793,000 $4,239,200 $5,427,600 $ 2019 54,000 932,200 648,400 $ 336,400 $ 623,000 491,000 762,200 827,400 2,282,400 $3,109,800 $1,385,200 3,049,300 $4,434,500 $ 313,900 $ 313,988…
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.
6
5. Economic Value Added (EVA) Fink Company presents the following year-end data: Current assets Non-current assets Current liabilities Non-current liabilities (10% interest rate) Stockholders' equity Additional data: Income before interests and taxes: P 800,000. Income tax rate: 20%. Cost of equity capital: 12%. REQUIRED: 1. Weighted Average Costs of Capital (WACC) 2. Economic Value-Added (EVA) Book Value P 800,000 3,200,000 400,000 1,000,000 2,600,000 Fair Value P 1,000,000 3,000,000
Need help calculating: A. Economic value added and B. Return on Capital
Problem solve this problem
What is the modified internal rate of return for the following cashflow? CF1 H CFo ($7,600,000) 23.14% 13.42% 19.84% 17.02% $2,800,000 i = 13% CF₂ $2,800,000 CF 3 ($1,700,000) CFA $4,550,000 CF5 $4,200,000