The ratio of non current assets to net worth was 75%. Discuss the risk that this poses

Question:

The ratio of non current assets to net worth was 75%. Discuss the risk that this poses for a company.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

See More Books

Question Posted: Nov 04, 2022 08:52 AM

See More Questions

Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses EBIT Interest Expense Income before Tax Income Statement 2017 Taxes Net Income $ 7,000,000 5,000,000 $ 2,000,000 $ $ $...
Determine the fixed assets to net worth ratio for the construction companyin Figures 6-1 and 6-2. What insight does this give you into the companys financial operations? Figures 6-1 WEST MOUNTAIN...
Determine the fixed assets to net worth ratio for the construction company in Figures 6-3 and 6-4. What insight does this give you into the companys financial operations? FIGURE 6-3 Balance Sheet for...
S1 Ltd and S2 Ltd belong to the same capital gains group. In May 2014, S1 Ltd transferred a chargeable asset to S2 Ltd. This asset had originally cost 10,000 and its market value in May 2014 was...
Show that for any probability- generating function, H (z), H (1) = 1.
Use the inner product = 3abab 12+ a21b21+ a22b22 to find (A, B), where A = 11 11 12 and B = B = [214] 3
If a solar system delivers $2500 \mathrm{MJ} / \mathrm{m}^{2} \cdot$ year with a water flow rate of $30 \mathrm{~kg} / \mathrm{m}_{c}{ }^{2}$ and a plate efficiency factor $F^{\prime}=0.93$,...
Use the accompanying graph to answer the questions that follow. a. Suppose this monopolist is unregulated.(1) What price will the firm charge to maximize its profits?(2) What is the level of consumer...
12. After you have completed 100 units, your overall GPA is 2.4. During the next term you take 16 units and achieve a 3.4 GPA for the term. What is your overall GPA then? If your overall GPA was 3.4...
Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition with Kilroy. However, managers at Oliveira have decided to use two...
It has been suggested that the growth in profits can be achieved by accounting sleight of hand rather than genuine economic growth. Consider how accounting sleight of hand can be used to report...
The ratio of current liabilities to net worth (equity + retained earnings) was 75%. Discuss how this would be viewed by suppliers and management.
Describe the organizational structure of hedge funds, VC funds, and private equity funds. How are the incentives of managers of these funds aligned with the goals of the (other) investors?
Drawing on your own beliefs, observations and experience debate the extent to which you would challenge the following cynical view of management. Where possible give support examples. Managers do not...
Are the following pairs of goods substitutes or complements? Indicate whether their cross-price elasticities are negative or positive. a. Bread and butter b. Bread and potatoes c. Socks and shoes d....
Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price of good A is $$2$. a. If the price of good B is $$4,$ the price of good C is $$3,$ the price of good...
Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pay...
GMs net income in 2010 was $$4.7$ billion. What would its accounting profit be if its cost of equity capital was $$5$ billion? What would its economic profit be if its cost of equity capital was...
Every affine set in n is the solution set of a system of a linear equations.
Phosgene, COCl2, is a toxic gas used in the manufacture of urethane plastics. The gas dissociates at high temperature. At 400oC, the equilibrium constant Kc is 8.05 104. Find the percentage of...
Corporate Borrowing if the firm was so successful at selling, why wouldnt a bank or some other lender step in and provide it with the cash it needed to continue?
Cash Flow which was the biggest culprit here: too many orders, too little cash, or too little production capacity?
Cash Flow which was the biggest culprit here: too many orders, too little cash, or too little production capacity?
Evaluate economic conditions that influence company performance of starbucks Consider political, environmental, currency ( money ) , global economics, and government influences on economic...
(Part 1) : The business letter to your employer. The purpose of the letter is to explain why diversity is important in the workplace and to recommend actions the organization can take to become more...
Question 4 (20 marks)In the recent annual general meeting of Umi Technology Limited, the board of directors declared an annual dividend of $5.00 per share, and the shareholders agreed to a rights...

The ratio of non current assets to net worth was 75%. Discuss the risk that this poses

Question:

Step by Step Answer:

A high ratio of non current assets to net worth indicates ...View the full answer

Financial Accounting And Reporting

Students also viewed these Business questions