ACCOUNTING PRINCIPLES V1 6/17 >C<
ACCOUNTING PRINCIPLES V1 6/17 >C<
3rd Edition
ISBN: 9781323761434
Author: Horngren
Publisher: PEARSON C
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Chapter 17, Problem S17.8SE
To determine

Debt Ratio: It is the ratio between total assets of the company and the total liabilities. Debt ratio reflects the finance strategy of the company. It is used to evaluate company’s ability to pay its debts. Higher debt ratio implies the higher financial risk.

Debt to Equity Ratio: This ratio reflects the relationship of company’s total liabilities to total equity. It is used to measure financial leverage. Higher debt to equity ratio means that the company has financed its assets by debts more than the owner’s capital.

1.

To Compute: Debt ratio and debt to equity ratio at May 31, 2018, for company A.

To determine

2.

To Evaluate: The ability of company A to pay its liabilities.

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29) As part of his job as cost analyst, John Kelly collected the following information concerning the operations of the Machining Department: Observation Machine-hours Total Operating Costs January 4,700 $43,000 February 5,060 45,395 March 4,180 42,535 April 4,500 43,600 May 4,250 42,890 Required: a. Use regression analysis to estimate the cost function with machine-hours as the cost driver. b. If June's estimated machine-hours are 4,300, calculate the total estimated costs of the Machining Department?
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Chapter 17 Solutions

ACCOUNTING PRINCIPLES V1 6/17 >C<

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