What is the maximum additional amount that sveva can borrow

Assignment Help Accounting Basics
Reference no: EM132616936

Question - On December 31, 2015, Sveva Inc. has liabilities of $652,000 and total equity of $168,000. The Company needs to raise additional funds debt and equity. The Company will issue 33,000 shares of common stock at $7 per share and in addition it intends to borrow as much as it can from Bank of switzerville. Bank switzervilla requires a maximum debt-to-asset ratio of 0.7. What is the maximum additional amount that sveva can borrow after the additional stock is issued?

Reference no: EM132616936

Questions Cloud

Evaluate the morality of punishment for actions : Evaluate the morality of punishment for actions. Describe the alternatives to punishment used to correct behavior.
What is the company working capital : All liabilities are current (the company has no long - term debt). The company has a current ratio of 1.2. What is the company's working capital
Applications of biometrics in public and private sector : Describe how a high biometric is being used in the public and private sector today.
Describe the stages of the life cycle of blowfly : Describe the stages of the life cycle of the blowfly? How does temperature and moisture affect the length of the blowfly's life cycle?
What is the maximum additional amount that sveva can borrow : Bank switzervilla requires a maximum debt-to-asset ratio of 0.7. What is the maximum additional amount that sveva can borrow
Compute the amount of cash received for September : Cash sales are normally 20% of total sales and the remaining sales are on credit. Compute the amount of cash received for September
About the crime analyst : You are a crime analyst; you have a client who has a case involving a drug buy for a series of homes. how you would use them as a crime analyst.
How has change affected general financial statement uses : The SEC now requires filers to report financial statements using XBRL, How has this change affected general financial statement users
Behavior involves illegal behavior-unethical behavior : Determine whether the behavior involves an illegal behavior, unethical behavior, or both.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was the cost of supplies the Cal Farms purchased

The supplies account decreased by $140,000 during the year to an ending balance of $460,000. What was the cost of supplies the Cal Farms purchased

  A downhill ski area in northern new england

Slippery Slope, Inc., is a downhill ski area in northern New England. In an attempt to attract more ski enthusiasts, Slippery Slope's management recently engaged in an aggressive preseason adver- tising campaign in which it spent $9,000 to distri..

  What conclusions the analyst should accept

Explain why this conflicting situation might occur and what conclusions the analyst should accept, indicating shortcomings and the advantages of each method.

  Prepare a statement of financial position at december

Prepare a statement of financial position at December

  What are property distributions

What are property distributions? How are they taxed for the distributing corporation as well as for the shareholder

  Prepare journal entries, under a periodic inventory system

Prepare journal entries, under a periodic inventory system. How would she journalise this? How would she journalise this? How is this recorded in the book?

  Richard ellis the director of cost operations of american

richard ellis the director of cost operations of american micro devices wishes to develop an accurate cost function to

  The thomlin company forecasts that total overhead for the

the thomlin company forecasts that total overhead for the current year will be 11053501 and that total machine hours

  During 2014 pretenders furniture company purchases a

during 2014 pretenders furniture company purchases a carload of wicker chairs. the manufacturer sells the chairs to

  How many units must t-tunes sell to break even

How many units must T-Tunes sell to break even? How many units must T-Tunes sell to make an operating profit of $240,000 for the year

  What is the future value of the ordinary annuity

Payments are made and interest is compounded as given - R = $6000, 9% interest compounded annually for 5 years. What is the future value of the ordinary annuity

  Which project should marlin accept

The second job will generate $220,000 of revenues and $120,000 of expenses in each of the two years - Assuming a 7 percent discount rate, which project should Marlin accept?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd