A company with a low debt to equity ratio is in a more vulnerable position during poor economic times than a company with a high debt to equity ratio
Indicate whether the statement is true or false
F
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Which of the following unsecured creditors has first priority?
A. The court, for its costs. B. An ex-spouse who is due alimony. C. Unpaid employees. D. General creditors.
Total productive efficiency is produced by an optimal combination of technical efficiency and allocative efficiency
Indicate whether the statement is true or false
Exhibit 22-3 Katrina Company acquired a truck on January 1, 2016, for $140,000. The truck had an estimated useful life of five years with no salvage value. Katrina used straight-line depreciation for the truck. On January 1, 2017, Katrina revises the estimated useful life of the truck. Katrina made the accounting change in 2017 to reflect the extended useful life. ? Refer to Exhibit 22-3. If
the revised estimated useful life of the truck is a total of eight years, what is the amount of depreciation expense that Katrina should report in its 2017 income statement? A) $14,000 B) $16,000 C) $17,500 D) $28,000
The Bharu Violin Corporation has the capacity to manufacture and sell 5,000 violins each year but is currently only manufacturing and selling 4,800. The following data relate to annual operations at 4,800 units: Per ViolinSelling price$600 Manufacturing costs: Variable$130 Fixed$270 Selling and administrative costs: Variable$20 Fixed$40?Woolgar Symphony Orchestra is interested in purchasing Bharu's excess capacity of 200 units but only if they can get the violins for $350 each. This special order would not affect regular sales or the total fixed costs.If the special order from Woolgar Symphony Orchestra is accepted, the financial advantage (disadvantage) Bharu for the year should be:
A. ($10,000) B. $40,000 C. ($22,000) D. ($28,000)