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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Managerial Accounting
- Titan Industries purchased a machine for $40,000 with a residual value of $6,000 and an estimated useful life of 12 years. What is the annual depreciation under the straight-line method? a) $3,087.05 b) $2,833.33 c) $2,500.55 d) $2,041.45Answerarrow_forwardAmount in account receivablearrow_forwardTitan Industries purchased a machine for $40,000 with a residual value of $6,000 and an estimated useful life of 12 years. What is the annual depreciation under the straight-line method? a) $3,087.05 b) $2,833.33 c) $2,500.55 d) $2,041.45arrow_forward
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