The last balance sheet of Lotus company is as follows Assets: Current Assets: 20 000 000 Long-Term

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

Question:

The last balance sheet of Lotus company is as follows

Assets:

Current Assets: 20 000 000

Long-Term Assets: 80 000 000

Total Assets: 100 000 000

Liabilities and Equity

Account Payables: 4 000 000

Accrued Expenses: 1 000 000

Short-Term Loan: 15 000 000

Long Term Loan: 50 000 000

Equity as Common Stock: 30 000 000

Total Liabilities and Equity: 100 000 000

This firm does not have any outstanding preferred stocks.

a)What is the total amount of financing used to finance the assets of this firm?

b)What is the weight of debt and the weight of equity (common stock) in financing the assets of that firm?

Related Book For answer-question

Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

See More Books

Posted Date: Aug 17, 2022 04:55 AM

See More Questions

Discuss both the advantages and disadvantages of using a computerized database system rather than a manual system for storing and processing accounting data. In your discussion, provide some specific...
Discuss and compare the advantages and disadvantages of survey methods and test marketing.
Which are the advantages and disadvantages of different product expansion strategies?
Data on the length, in seconds, of a sample of 50 songs by The Beatles are presented in the accompanying data table. Complete parts (a) through (d) below. Click the icon to view the table of song...
Calculate the missing values for the promissory notes described Face value ($) Issue Interest date Date of sale Discount rate (%) Proceeds (S) 4015.25 rate (%) Term 8 75 days Jan 1 4000 Nov 30
Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April 1 from the materials ledger are as follows:...
The factor $j_{\mathrm{D}}$ is also used in the correlation. This is defined as \[j_{\mathrm{D}}=S t(S c)^{2 / 3}=\frac{k_{\mathrm{m}}}{v_{\text {ref }}}(S c)^{2 / 3}\] where $S t$ is the Stanton...
You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $ 98 million in current taxes and...
1. Tesla shares have soared recently. What has changed at Tesla? Why is Tesla once again valued more highly than both GM and Ford? 2. What is the vital link between the construction of the Shanghai...
Refer to Figure 2-30 and the discussion about updating master files from transaction files. The discussion presents the record structures for a sales transaction. Prepare a diagram (similar to Figure...
5. Compute the heat loss per m? of surface area for a furnace wall 30 cm thick. The inner and outer surface temperatures are 593K and 311K, respectively. The variation in thermal conductivity...
The following events took place at Freddie Choo Painting during 2016: a. On 1 January, Freddie bought a van for $30 000. He had a tool chest and side racks for ladders installed for a total cost of...
In some countries it is known that payments can be made to local public servants to speed up the approval of permits, licences and other processes. These have been called facilitation payments but...
Below is a note from Eastwood Ltd's recent annual report: 1. Summary of significant accounting policies on non-current assets Property and equipment - Property and equipment is recorded at cost and...
At the beginning of 2015, Garrison Ltd acquired machinery that cost $100 000, had a useful life of 10 years and zero scrap value. During 2015 and 2016, the company depreciated this machinery using...
Below are some independent hypothetical situations. 1. A company pays its shareholders a $90 000 cash dividend. 2. A company borrows $25 000 from the local bank and signs a six-month note for the...
Consider a large tank of volume V filled with air initially at stagnation conditions of (Poi, Toi). Attached to the tank is a valve that has a cross-sectional area of Ag. This valve isolates the tank...
[a] Two foam blocks, each with a charge of 19 micro coulombs (1 C = 10-6 C), are both held in place 19 cm apart in the east-west direction. A foam ball with a charge 49 C is placed 55 cm north of the...
Consider once again the R&D strategies of the pharmaceutical company. Suppose the companys management is risk averse and has assessed the following utility values for the set of possible outcomes (in...
A manufacturing firm produces output using a single plant. The relevant cost function is C = 500 + 5Q2. The firms demand curve is P = 600 - 5Q. a. Find the level of output at which average cost is...
Consider again the New York taxi market, where demand is given by Q = 7 - .5P, each taxis cost is C = 910 + 1.5q, and ACmin = $8 at 140 trips per week. a. Suppose that, instead of limiting...
If, during a stride, the stretch causes her center of mass to lower by $10 \mathrm{~mm}$, what is the stored energy? A. $3.0 \mathrm{~J}$ B. $6.0 \mathrm{~J}$ C. $9.0 \mathrm{~J}$ D. \(12...
A $1.00 \mathrm{~kg}$ block is attached to a horizontal spring with spring INT constant $2500 \mathrm{~N} / \mathrm{m}$. The block is at rest on a frictionless surface. A $10.0 \mathrm{~g}$...
We can make a static measurement to deduce the spring constant to use in the model. If a $61 \mathrm{~kg}$ woman stands on a low wall with her full weight on the ball of one foot and the heel free...

The last balance sheet of Lotus company is as follows Assets: Current Assets: 20 000 000 Long-Term

Question:

Expert Answer:

Managerial economics

Students also viewed these finance questions