Debt-Equity ratio: The Debt equity ratio is a ratio that signifies the proportion of outside funds employed in the business as compared to owner’s equity (i.e. stockholder’s equity). The ratio is computed by dividing the total outside liabilities (both current liabilities and long term liabilities) by the stockholders’ equity of the business. The debts and equity financing are complimentary source of financing and every business need to employ both the sources not only from funds point of view but also required for managing the cost of funds to take the advantage of financial leverage. The lower the ratio better is the financial stability of the business as the business relies lesser on the outside funds for the operation of the business and is self-reliant from the owner’s funds. Requirement: The Determination of Debt-equity ratio of the business.
Debt-Equity ratio: The Debt equity ratio is a ratio that signifies the proportion of outside funds employed in the business as compared to owner’s equity (i.e. stockholder’s equity). The ratio is computed by dividing the total outside liabilities (both current liabilities and long term liabilities) by the stockholders’ equity of the business. The debts and equity financing are complimentary source of financing and every business need to employ both the sources not only from funds point of view but also required for managing the cost of funds to take the advantage of financial leverage. The lower the ratio better is the financial stability of the business as the business relies lesser on the outside funds for the operation of the business and is self-reliant from the owner’s funds. Requirement: The Determination of Debt-equity ratio of the business.
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
Chapter 14, Problem E14.28E
To determine
Debt-Equity ratio:
The Debt equity ratio is a ratio that signifies the proportion of outside funds employed in the business as compared to owner’s equity (i.e. stockholder’s equity). The ratio is computed by dividing the total outside liabilities (both current liabilities and long term liabilities) by the stockholders’ equity of the business. The debts and equity financing are complimentary source of financing and every business need to employ both the sources not only from funds point of view but also required for managing the cost of funds to take the advantage of financial leverage.
The lower the ratio better is the financial stability of the business as the business relies lesser on the outside funds for the operation of the business and is self-reliant from the owner’s funds.
Requirement:
The Determination of Debt-equity ratio of the business.
Brun Company produces its product through two processing departments: Mixing and Baking. Information for the Mixing department
follows.
Direct Materials
Conversion
Unit
Percent Complete Percent Complete
Beginning work in process inventory
7.500
Units started this period
104,500
Units completed and transferred out 100.000
Ending work in process inventory
12.000
100%
25%
Beginning work in process inventory
Direct materials
Conversion
$6.800
14.500 $21.300
Costs added this period
Drect materials
116,400
Conversion
Total costs to account for
1.067,000 1.183.400
$1.204.700
Required
1. Prepare the Mixing department's production cost report for November using the weighted average method
Check (1) C$1.000
2. Prepare the November 30 journal entry to transfer the cost of completed units from Mixing to Baking
None
Not need ai solution please solve this general accounting question
Chapter 14 Solutions
Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package