Why would information of this type be useful to investors

Assignment Help Accounting Basics
Reference no: EM132642987

Question - The following balances apply to your business at 30 June 2020:

Account name balance $

Accounts receivable 300

Accounts receivable 60

Unearned revenue 30

Accrued expenses 60

Wages payable 90

Bank overdraft 152.4

Interest expense 60

Rent expense 30

Utilities expense 60

Wages expense 90

Depreciation expense 15

Motor vehicles 150

Fixed deposit, matures 30 June 2022 180

Bank loan, due 1 January 2025 300

Profit ?

Interest revenue 18

Cash revenue 150

Credit revenue 300

Required -

a) In the space provided calculate the current ratio and net profit margin.

b) Name a key ratio that cannot be calculated because this form of business is a partnership as opposed to a public company. Why would information of this type be useful to investors?

Reference no: EM132642987

Questions Cloud

Explain characteristic of ideal ruler in ancient south asian : Citing specific evidence from the Ramayana, explain some of the characteristics of the ideal ruler in ancient South Asian society. Explain in detail.
The lifeblood of every business organization : According to Franks and Smallwood (2013), information has become the lifeblood of every business organization,
Prepare the equity section of the balance sheet only : Given account name and balance - Accounts receivable 100 and Prepaid rent expense 20. Prepare the equity section of the balance sheet only
What is expected outcome for attempting the venture : What is your expected outcome for attempting this venture? a decision tree and clearly show all calculations and the expected monetary value at each node.
Why would information of this type be useful to investors : In the space provided calculate the current ratio and net profit margin. Why would information of this type be useful to investors
What information will you include in your informed consent : What information will you include in your informed consent? You have just received a subpoena to testify in a court case concerning your client.
Why might bringing a party document help during an interview : Why might bringing a 3rd party document help during an interview? Why is it important to focus on the company's or investor's needs rather than your goals?
What you believe the specific benefits will be to greer john : What you believe the specific benefits will be to Greer John Wealth Management in transitioning from monolithic architecture to microservices architecture
Question - record the events : Question - Record the Events - Erie Company has 300,000 shares of authorized and issued common stock, $2 par

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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