Even though Firm A's current ratio exceeds that of Firm B, Firm B's quick ratio might exceed that of A. However, if A's quick ratio exceeds B's, then we can be certain that A's current ratio is also larger than that of B. True False

Answers

Answer 1

Answer: False

Explanation:

If Firm A's current ratio exceeds that of Firm B, it is still possible that B's quick ratio is larger than A's. If A's quick ratio is larger than B's however, then there is still a possibility that B's current ratio can be larger than A's.

The current ratio is the Current Assets divided by Current liabilities. The Quick ratio is Current Assets less inventory divided by Current liabilities.

B's current ratio can therefor be larger than A's if it has more inventory than A such that when we calculate the current ratio of B, the extra inventory would give it a higher current ratio than A.


Related Questions

"Lean supply chain management focuses on eliminating waste: Group of answer choices in a firm's sourcing and logistics activities. within a firm's internal operations. in flows of information and money among supply chain partners. in all of the above areas."

Answers

Answer:

in all of the above areas.

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

A lean business is a business concept used by organizations to eliminate waste and maximize value for growth and development. The lean business concept include the following;

I. A total quality management (TQM): it is a management framework that is focused on achieving long-term success through the satisfaction of your customers by the efforts of all the member of staff in an organization.

II. A continuous improvement (CI): it is a management technique that is focused on improving manufacturing processes, products and services through the elimination of redundancy and time-wasting activities in an organization.

III. Just-in-time (JIT): it is a management framework that is focused on cutting manufacturing costs and increase efficiency between suppliers and consumers through the use of a proper inventory system.

Hence, Lean supply chain management focuses on eliminating waste:

I. In a business firm's sourcing and logistics activities.

II. In the internal operations of a business firm.

III. In flows of information and money among various supply chain partners.

The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects that the company will last for two more years and then be dissolved. The firm will generate cash flows of $450,000 next year and $790,000 in two years, including the proceeeds from the liquidation. There are 20,000 shares of stock outstanding and shareholders require a return of 12 percent.

Required:
What is the current price per share of the stock?

Answers

Answer:

$53.09

Explanation:

Calculation to determine current price per share of the stock

First step is to determine the Dividend per share in Year 1

Using this formula

Dividend per share in Year 1 = Cash flow generated next year / Number of shares

Let plug in the formula

Dividend per share in Year 1 == $450,000 / 20,000

Dividend per share in Year 1 == $ 22.5

Second step is to determine the Dividend per share in Year 2 using this formula

Dividend per share in Year 2 = Cash flow generated in two years / Number of shares

Let plug in the formula

Dividend per share in Year 2 = $790,000 / 20,000

Dividend per share in Year 2 = $39.5

Dividend per share in Year 2 =$40 Approximately

Now let determine the Share price today using this formula

Share price today = [ Dividend in Year 1 / (1 + Required rate of return) ] + [ Dividend in Year 2 / (1 + Required rate of return)2 ]

Let plug in the formula

Share price today = [22.5 /(1+.12)]+ (40 / 1.12^2

Share price today = (22.5 /1.12) + (40 / 1.12^2)

Share price today =$20.09+(40/1.25)

Share price today =$20.09+32

Share price today = $ 53.09

Therefore current price per share of the stock

Is $53.09

What is the importance of computer applications in the business domain? How Computer applications support businesses to work ubiquitously? Give valid reasoning with examples.

Answers

Answer:

Explanation:

The importance of computer applications in the business domain is that it allows for the automatization of daily tasks. This is also the reason why businesses that implement such applications are able to work ubiquitously. The software applications are designed to automate all of the tasks that the business needs and perform them quickly and efficiently, if a certain task is not able to be automated then the software still makes completing the task by only requiring user input for the absolutely necessary parts of the task. One example of this would be a logistics application for businesses where inventory is automatically calculated as sales go through and automatically replenished by sending inventory requests to suppliers.

For most​ firms, the cost of capital decreases to a low point as the firm​ ________ debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ ________.

Answers

Answer:

increases; decreases

Explanation:

In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in

evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most​ firms, the cost of capital decreases to a low point as the firm​ increases debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ decreases

James Ryan has been a Budweiser Beer distributor for the past 20 years. James owns a ________ franchise.

Answers

Answer:

product and trademark

Explanation:

These are the options for the question

business format

product and business format

product plus

business design

product and trademark

product and trademark

Product franchise can be regarded as franchising agreement in which manufacturers give a retailers access to distribute the products of the manufacturer using the trademark as well as names of the manufacturer. It is right given to to market a product using another person trade mark.

For, instance in the case whereby James Ryan has been a Budweiser Beer distributor for the past 20 years. Then James owns a product and trademark

franchise.

____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics

Answers

Answer:

d) Social media monitoring

Explanation:

Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers

So, as per the given situation, it is a social media monitoring

If a loan is made at an interest rate higher than that allowed by state law, the lender is guilty of _______, which is defined as charging interest higher than the law permits.

Answers

Answer:

Usury.

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

However, if a loan is given to a borrower at an interest rate higher than that allowed by an established state law, the lender is said to be guilty of usury, which typically involves the act of charging interest higher than the law permits.

true and false
4. Know the market trends of products that are in demand not
only within the local market but also in the international market.​

Answers

Answer:

false

Explanation:

don't think so that s

is the answer

Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.40. You believe that dividends will grow at a rate of 19.0% per year for two years, and then at a rate of 7.0% per year thereafter. You expect the stock will sell for $17.17 in two years. You expect an annual rate of return of 22.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now

Answers

Answer:

$18.09

Explanation:

The computation of the current stock price is shown below:

Particulars   Dividend or amount   PVIF at 22%       Present value

D1                  $4.05                        0.820       $3.32          

($3.40 × 1.19)

D2                 $4.81                         0.672         $3.23

($4.05 × 1.19)

Stock price in 2 years $17.17         0.672         $11.54

Current stock price                                            $18.09

anyone here earn money from brainly and how
please guide me

Answers

Hi, you've asked an incomplete question. However, I assumed you want to know what Brainly platformed.

Explanation:

It is interesting to note that the Brainly platform is designed specifically for students to learn from their peers mostly free of charge, and it allows them to find answers to homework questions.

Information is considered material to the financial statements if
I. It falls within industry-specific quantitative guidelines published by the Financial Accounting Standards Board.
II. Its omission could make a difference in the decisions made by a user relying on the financial statements.
III. Its misstatement could make a difference in the decisions made by a user relying on the financial statement.
a. I and IIl only.
b. Il and Ill only.
c. I, Il and III.
d. I only.

Answers

Answer:

B

Explanation:

Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$15.00. Holding cost is ​$0.25 per cassette per year. a. How many tapes should Babble order at a​ time?

Answers

Answer:

The appropriate solution is "764".

Explanation:

Given:

Demand per month,

D = 405

or,

  = [tex]405\times 12[/tex]

  = [tex]4860[/tex]

Ordering cost,

S = $15

Holding cost,

H = $0.25

As we know,

⇒  [tex]EOQ=\sqrt{\frac{2DS}{H} }[/tex]

⇒            [tex]=\sqrt{\frac{2\times 4860\times 15}{0.25} }[/tex]

⇒            [tex]=\sqrt{\frac{145800}{0.25} }[/tex]

⇒            [tex]=\sqrt{583200}[/tex]

⇒            [tex]=763.67[/tex]

or,

⇒            [tex]=764[/tex]

A company purchased $3,300 worth of merchandise. Transportation costs were an additional $290. The company returned $230 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:

Answers

Answer:

the total cost of the merchandise is $3,267.90

Explanation:

The computation of the  total cost of this merchandise is shown below;

Purchase $3,300

Less Purchase return -$230

Purchase less return $3,070

Less: discount at 3% on $3,070 -$92.10

Net purchase cost $2,977.90

Add: transportation $290

Total cost $3,267.90

hence, the total cost of the merchandise is $3,267.90

On July 1, 2019, Stacy Company signed a $140,000, one-year, 6 percent note payable. The principal and interest will be paid on June 30, 2020. How much interest expense should be reported on the income statement for the year ended December 31, 2019

Answers

Answer:

Stacy Company

The amount of interest expense that should be reported on the income statement for the year ended December 31, 2019 is:

= $4,200.

Explanation:

a) Data and Calculations:

6% Notes Payable = $140,000

Date of issuance = July 1, 2019

Interest rate per annum = 6%

Total interest expense for the one year = $8,400 ($140,000 * 6%)

Interest expense for the half-year = $4,200 ($140,000 * 6% * 1/2)

b) Therefore, the cash payment on June 30, 2020 will amount to $148,400 ($140,000 + $8,400)

Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.
1. Purchased 18,400 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.80 per unit.
2. Issued 18,400 units of raw materials for jobs that required 18,100 standard units of raw materials.
3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.10 per hour. The standard rate is $4.60 per hour. (Credit Factory Wages Payable).
4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,190.
5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Journalize the January transactions.

Answers

Answer:

1. Dr Raw Materials Inventory $69,920

Dr Materials Price Variance $1,840

Cr Accounts Payable $71,760

2. Dr Work in Process Inventory $68,780

Dr Materials Quantity Variance $1,140

Cr Raw Materials Inventory $69,920

3. Dr Factory Labor $73,600

Cr Labor Price Variance $8,000

Cr Factory Wages Payable $65,600

4. Dr Work in Process Inventory $74,474

Cr Labor Quantity Variance $874

Cr Factory Labor $73,600

5. Dr Work in Process Inventory $143,254

Cr Manufacturing Overhead $143,254

Explanation:

Preparation of the anuary transactions

1. Dr Raw Materials Inventory $69,920

(18,400*$3.80)

Dr Materials Price Variance $1,840 [18,400 x ($3.90 - $3.80)]

Cr Accounts Payable $71,760

($69,920+$1,840)

2. Dr Work in Process Inventory $68,780

(18,100*$3.80)

Dr Materials Quantity Variance $1,140 [$3.80 x (18,400 - 18,100)]

Cr Raw Materials Inventory $69,920

(18,400*$3.80)

3. Dr Factory Labor $73,600

($16,000*$4.60)

Cr Labor Price Variance $8,000

[16,000 x ($4.10 - $4.60)]

Cr Factory Wages Payable $65,600

(16,000*$4.10)

4. Dr Work in Process Inventory $74,474

(16,190*$4.60)

Cr Labor Quantity Variance $874 [$4.60 x (16,000 - 16,190)]

Cr Factory Labor $73,600

($8,000+$65,600)

5. Dr Work in Process Inventory $143,254

($68,780+$74,474)

Cr Manufacturing Overhead $143,254

sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit

Answers

Answer:

Actual gross profit $262,200

Explanation:

The computation of the actual gross profit is as follows;

Allocated manufacturing overhead

$104,400

Actual manufacturing overhead

$92,000

Over applied manufacturing overhead

$12,400

Unadjusted cost of goods sold

$335,900

Less:

Over applied manufacturing overhead

($12,400)

Adjusted cost of goods sold

$323,500

Sales revenue

$585,700

Less:

Adjusted cost of goods sold

($323,500)

Actual gross profit

$262,200

under FINRA rules, numbered accounts are: A prohibited B permitted with the prior approval of FINRA C permitted if the firm maintains a written statement of the customer attesting to ownership D permitted without any additional supporting documentation

Answers

Answer:

C permitted if the firm maintains a written statement of the customer attesting to ownership

Explanation:

FINRA can be regarded as body which carry out regulation of trading in corporate bonds, as well in equities, and securities futures. All firms that deals with securities are

usually member of FINRA.One of FINRA requirements is that

maintaining an accounts should be in

customer name a numbered account can be maintained in case the firm leave a written statement by the customer in a file which attest to ownership.It should be noted that under FINRA rules, numbered accounts are permitted if the firm maintains a written statement of the customer attesting to ownership.

The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output is $

Answers

Answer:

$10

Explanation:

The computation of the price of the output is given below;

As per the given data

At the time when the average product is maximum, so the average product is equivalent to the marginal product

Therefore, AP = MP= 30

MRP = 300

Now

MRP = MP × MR

300= 30 × MR

MR= 300 ÷ 30

= 10

So,

 P= MR= 10

"Standard Cost Data per 1 Unit Quantity Price Direct Material 3 lbs $2.00/lb Direct Labor 2 hrs $4.00/hr Actual Data: Units produced 20 Material purchase 100 lbs at $2.25 per lb Material usage 90 lbs Direct Labor 30 hrs; total cost $123 Compute all standard costs and variances for DM & DL. Show all computations."

Answers

Answer and Explanation:

The computation is shown below:

The Standard cost for 20 units is  

Material (20 units × 3lbs × $2lb) $120

Direct labor (20 units  × 2lbs × $4) $160

Total standard cost $280

Now  

Direct material price variance = (Actual price -Standard price) × Actual quantity

= (2.25-2.00) × 90

=22.5 Unfavorable

Direct material quantity variance = (Actual quantity- Standard quantity) × Standard price  

=(90-20x3) × 2

= $60 unfavorable  

Direct material cost variance =Direct material price variance + Direct material quantity variance

=22.5 UF+$60UF

=82.50UF

Direct labor Rate variance = (Actual rate -Standard rate)  × actual hours  

= (4.10-4.00) × 30 hrs

= $3 Unfavorable  

Actual rate = $123 ÷ 30 hrs

= $4.10

Direct labor Quantity variance = (Actual hours -Standard hours ) × Standard rate

=(30-20 × 2) × 4

=$40 favorable  

Direct labor cost variance =Direct labor Rate variance+Direct labor Quantity variance

=$3 unfavorable  + $40 favorable  

=$37 favorable

assume that a compan operates a fleet of limousines if a limo is driven 80,000 miles during a year its average is 25 cents per mile. driven only 60,000 miles operating cost is 30 cents per mile high low method, what is the estimated fixed cost per year

Answers

Answer:

The answer is "$12000".

Explanation:

Calculating the total cost:

when 80,000 miles[tex]=(80,000\times 0.25)=\$20,000[/tex]

when 60,000 miles[tex]=(60,000\times 0.3)=\$18000[/tex]

[tex]\text{Calculating the per mile variable cost} =\frac{[\text{Total cost of highest level-Total cost of lowest level}]}{(Highest \ level-Lowest \ level)}[/tex]

                                                           [tex]=\frac{(20,000-18000)}{(80,000-60,000)}\\\\=\frac{(2,000)}{(20,000)}\\\\=\frac{(1,000)}{(10,000)}\\\\=\frac{(1)}{(10)}\\\\=$0.1 / mile[/tex]

So, the total fixed cost:

[tex]=20,000-(80,000\times 0.1)\\\\=20,000-8,000\\\\=\$12,000[/tex]

Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 4000 Shipping 1.20 Advertising 0.30 Executive salaries 30000 Depreciation on office equipment 7000 Other 0.35 18000 Expenses are paid in the month incurred. If the company has budgeted to sell 6000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Answers

Answer:

$14,700

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

Using this formula

Total budget variable selling and administrative =(Sales commissions+Shipping+Advertising+Other)*Budgeted umbrellas

Let plug in the formula

Total budget variable selling and administrative = ($0.60 + 1.20 + 0.30 + 0.35)*6,000

Total budget variable selling and administrative= $2.45*6,000

Total budget variable selling and administrative= $14,700

Therefore the total budgeted variable selling and administrative expenses for October is $14,700

Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 18%, what is the modified internal rate of return

Answers

Answer:

The modified internal rate of return is 15.67%.

Explanation:

Note: See the attached excel file for the calculation of the total present value of the after-tax cash flows.

From the attached excel file, we have:

Total present value of the after-tax cash flows = $40,332.66

The modified internal rate of return (MIRR) can be calculated using the following formula:

MIRR = (PV / Outlay)^(1/n) * (1 + r) - 1……………….. (2)

Where;

PV = Total present value of the after-tax cash flows = $40,332.66

Outlay = Absolute value of cost of the project = $47,300

r = cost of capital = 18%, or 0.18

n = number of years = 8

Substitute the values into equation (1) to have:

MIRR = ($40,332.66 / 47,300)^(1/8) * (1 + 0.18) - 1 =  0.1567, or 15.67%

Therefore, the modified internal rate of return is 15.67%.

Heritage, Inc., had a cost of goods sold of $44,721. At the end of the year, the accounts payable balance was $8,253. How long on average did it take the company to pay off its suppliers during the year

Answers

Answer:

Account payable days = 67.36 days

Explanation:

The payable days is the average length of time it takes a business to settle its account payable. It is calculated as thus;

Account payable days = Average account payable / Cost of goods sold × 365

Account payable = $8,253/44,721 × 365

Account payable = 67.36

Therefore, it will take Heritage about 67.36 days to settle its account payable

Describe the role of separation and termination in relation to broader human resources and business objectives

Answers

Answer:

Separation and or termination in HR relates to the cessation of the relationship between employer and employee.

Separation and or termination of the contract may occur in the following ways:

1. Constructive Discharge

2. Firing

3. Layoff

4. Termination by Mutual Agreement

5. Termination with Prejudice

6. Termination without Prejudice

7. Involuntary Termination of employment contract

8. Voluntary Termination of employment contract

9. Wrongful Termination of employment contract

10. Cessation of Temporary Contracts

Explanation:

Regardless of the type of separation or termination which occurs, the business owner and the the HR manager must realize that the HR funnel must never run short of hands with which the organization will attain its goals/objectives.

Recognizing the times lines for contracts that are terminal in nature, anticipating and preparing for sudden separation and planning adequately for these occurrences using HR Planning enables the business to continue to thrive regardless of its rate of turnover.

Cheers

please share me answer​

Answers

Answer:

Explanation:

debit Unearned Revenue   200

credit        Revenues                   200

To realize one month of insurance premium revenue

Please answer the question posted in the image

Answers

Answer:

its c

Explanation:

Q8 Bernard co. has 9% coupon bonds on the market that have 11 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 10%, what is the current bond price (in $ dollars)

Answers

Answer: Hello the face value of the bond is missing hence I will assume $1000 as the face value.

$935.05

Explanation:

Assumption:  Face value of Bond = $1,000

Determine the current bond price

Nper = 11 years

YTM ( rate )  = 10%

PMT  = 9% ( coupon rate ) * 1000 ( face value of bond ) = 90

Fv = $1000

apply excel function to determine the current bond price

=PV( 10%,11,90,1000,0) = $935.05  

Note : You can insert the face value you have into the excel function if the value you have isn't $1000 as I assumed

Vaughn’s standard quantities for 1 unit of product include 5 pounds of materials and 1.0 labor hours. The standard rates are $4 per pound and $5 per hour. The standard overhead rate is $6 per direct labor hour. The total standard cost of Vaughn’s product is $31.00. $25.00. $15.00. $11.00.

Answers

Answer:

$31.00

Explanation:

Calculation to determine what The total standard cost of Vaughn's product is

Using this formula

Total standard cost of product=(Material Standard rate per pound × pounds of material) + (Labor standard rate per hour × labor hours) + (Standard overhead rate x labor hours)

Let plug in the formula

Total standard cost of product=[($4 × 5) + ($5 × 1.0)]+ ($6 × 1.0)

Total standard cost of product=($20+$5)+$6

Total standard cost of product= $25.00 +$6

Total standard cost of product= $31.00

Therefore The total standard cost of Vaughn's product is $31.00

When more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices, the cash received is allocated between the securities based on:

Answers

Answer:

Relative market values

Explanation:

Secondary market can be defined as a market where various investors sell and buy securities from other investors.

Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).

On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products, securities or stocks is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Generally, when more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices, the cash received is allocated between the securities based on relative market values.

Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 6,020
Less: Cost of goods sold 4,240
Less: Depreciation 325
Earnings before interest and taxes $ 1,455
Less: Interest paid 29
Taxable Income $ 1,426
Less: Taxes 499
Net income $ 927
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 80 $ 185 Accounts payable $ 1,445 $ 1,745
Accounts rec 940 780 Long-term debt 760 550
Inventory 1,560 2,010 Common stock $ 3,125 $ 3,020
Total $ 2,580 $ 2,975 Retained earnings 820 1,070
Net fixed assets3,570 3,410 Total assets $ 6,150 $ 6,385
Total liab. & equity$ 6,150 $ 6,385
What is the equity multiplier for 2010?
a) 0.52
b) 2.11
c) 2.04
d) 1.04
e) 1.56

Answers

Answer:

The correct option is e) 1.56.

Explanation:

Note: The data in this question are merged together. The complete question with the sorted data is therefore provided before asnwering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now provided as follows:

The equity multiplier can be described as a financial leverage ratio gives a measure of the total assets of a company that is financed by the shareholders of the company. This can be calculated using the following formula:

Equity multiplier = Total assets / Total Shareholder's Fund ........... (1)

Where, for Bayside, Inc. in 2010, we have:

Total assets = $6,385

Total Shareholder's Fund = Common stock + Retained earnings = $3,020 + $1,070.00 = $4,090

Substituting the figures into equation (1), we have:

Equity multiplier = $6,385 / $4,090 = 1.56

Therefore, the equity multiplier for 2010 is 1.56 and the correct option is e) 1.56.

Other Questions
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