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Concept introduction:
Asset of a company means the item of a company which generates future
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 1:
We have to determine the
Concept introduction:
Asset of a company means the item of a company which generates future cash flows and economic benefits whereas liabilities of an organization represent a future obligation of an organization.
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 2:
We have to determine the debt ratio and return on asset.
Concept introduction:
Asset of a company means the item of a company which generates future cash flows and economic benefits whereas liabilities of an organization represent a future obligation of an organization.
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 3:
We have to determine whether bank loan of $30,000 is a good option or not.
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Chapter D Solutions
Managerial Accounting
- Subject: general Accountingarrow_forwardHow much will you accumulated after 35 year?arrow_forwardOn a particular date, FedEx has a stock price of $89.27 and an EPS of $7.11. Its competitor, UPS, had an EPS of $0.38. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? A) $4.77 B) $7.16 C) $9.54 D) $10.50arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
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