How would you treat the following items in computing ratio

Assignment Help Accounting Basics
Reference no: EM13129118

financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would you treat the following items in computing this ratio?

* Revolving credit agreement with bank
* Cash and marketable securities
* Operating leases
* Unrecorded pension commitments
* Deferred tax liabilities
* Preferred stock
* Convertible debt

Reference no: EM13129118

Questions Cloud

Explain coronary artery disease good and bad cholesterol : Explain Coronary Artery Disease: Good and Bad Cholesterol, A middle-aged man has been diagnosed as being at high-risk of developing Coronary Artery Disease.
Favorable overhead efficiency variance : Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a favorable overhead efficiency variance. Which reason is most persuasive? Why?
What is the value of k for systematic sampling : These employees has been taken by systematic sampling, what is the value of k? The researcher would start the sample selection between what two values?
What are effects of this transaction on accounting equation : On September 30, MFP Co. paid employee salaries $7,000, including $1,000 it owed to its employees last month. What are effects of this transaction on the accounting equation?
How would you treat the following items in computing ratio : financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would you treat the following items in computing this ratio?
Is francine necessarily right : Long-term bonds are a great investment because their interest rate is over 20%. Is Francine necessarily right?
Integral part of the annual period : Some accountants hold the view that each interim period should stand alone as a basic accounting period, whereas others view each interim period as essentially an integral part of the annual period. Distinguish between these views.
Enough evidence to establish that average weight lawnmowers : The sample standard deviation is 10 lbs. We would like to decide if there is enough evidence to establish that the average weight for the population of lawnmowers is greater than 100 lbs.
Explain preparing solutions for biochemical experiments : Preparing solutions for biochemical experiments, In preparation for a protein purification experiment, you have been asked to prepare 100 mL of an aqueous solution of Tween20

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Calculate the cost per unit of cost driver for each cost

Pumpkin Bags (PB) is a desiger of high quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse.

  Dollar amount of the worksheet elimination

In the preparation of the 2006 consolidated financial statements, what is the dollar amount of the worksheet elimination to 2006 Retained Earnings with respect to this transaction?

  Break even analysis to produce or sell the new product

George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process.

  Method to amortize bond premium of discount

On june 30, 2012, mackes company issued 5,000,000 face value of 13%, 20 year bonds at $5,376,150, a yield of 12%. Mackes uses the effective-interest method to amortize bond premium of discount. the bonds pay semiannual interest on june 30 and dece..

  What are equivalent units of production for direct material

O'malley Corp. uses a weighted average process costing system. Material is added at the beginning of the production process and overhead is applied on the basis of direct labor.

  What are the relevant tax issues

Because of Wyatt's loyalty, Julie would like him to have shares in the corporation. What are the relevant tax issues?

  Write a memorandum comparing the tax consequences

Amy, Beth, and Meg each own 100 of the 300 outstanding shares of Theta Corporation stock. Amy wants to sell her shares, which have a $40,000 basis and a $100,000 FMV. Either Beth and/or Meg can purchase Amy's shares (50 shares each) or Theta can r..

  Production-volume variance

Using the above data, fill in the following blanks with the variance amounts. Use F for favorable or U for unfavorable for each variance. Total Overhead Variable Fixed, 1. Spending variance , 2. Efficiency variance ?, 3. Production-volume variance ?,..

  Treasury stock transactions-presentation-jodz company

Jodz Company had the following stockholders' equity as of January 1, 2004. Prepare the journal entries to record the treasury stock transactions in 2004, assuming Jodz uses the cost method.

  Basis in the partnership interest

What is the income or gain recognized? What is his basis in the partnership interest?

  Determining output-price and profits

As a monopoly, compute Quick Tax's output, price, and profits at the profit-maximizing activity level.

  Eliminating the accumulated depreciation

Assume Candy Company accounts for accumulated depreciation by eliminating the accumulated depreciation against the gross carrying amount of the asset and restating the net amount to the revalued amount of the asset.

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