Reference no: EM132871852
Question - Boom Company currently has $500,000 of assets and $160,000 of debt. Total revenues last year were $100,000, and total expenses were $88,000.
Required - Assuming the net income remains unchanged, calculate the company's return on assets ratio, debt ratio, and debt/equity ratio under the following independent assumptions or changes:
1. No changes in above.
2. Assuming the company had leased $30,000 of its assets "off the balance sheet."
3. Assuming the company had leased $60,000 of its assets "off the balance sheet."
4. Assuming the company had leased $90,000 of its assets "off the balance sheet."
5. Assuming the company had leased $120,000 of its assets "off the balance sheet."
Based on a review of your calculations for the financial ratios above, explain why a firm might want to engage in "off balance sheet" financing.
|
How much revenue should Smith and Sons recognize for year
: If a customer purchases both software packages on June 1, 2021, how much revenue should Smith & Sons recognize for the year
|
|
Why is sociological representation important
: Why is sociological representation important? If congressional representatives have racial, religious, or educational backgrounds similar to their constituents
|
|
Discuss the three new models of urban planning \
: Discuss the three new models of urban planning that have emerged in the last couple of decades. Have you witnessed any of these models in your own community?
|
|
Give a solution for the four concerns
: Discuss how your solutions address the issues in the workplace. Discuss what would be the responsibility of the global relief team.
|
|
Calculate the company return on assets ratio
: Boom Company currently has $500,000 of assets and $160,000 of debt. Calculate the company return on assets ratio
|
|
Advantages and disadvantages of using repayment plan
: Sarah makes $43,000 per year, is single, and lives in Connecticut. She has $19,000 in subsidized loans and $8000 in unsubsidized loans.
|
|
Journalize the transactions
: Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share
|
|
How does the participant help set the agenda
: Give an example of an attempt at agenda setting in government. Was it successful? Why or why not? Consider how factors such as culture, political positions
|
|
Prepare the statement of retained earnings
: Prepare the statement of retained earnings for 20x2 for the Singh park hotel. (assume the hotels fiscal year ends on December 31, 20x2)
|