However, an acceptable range for the current ratio could be 1.0 to 2. Ratios in this range indicate that the company has enough current assets to cover its debts, with some wiggle room. A current ratio lower tha
Debt-to-income ratio (DTI) measures the amount of debt you have against your overall income. It’s a way for lenders to assess your financial health and creditworthiness. If a large chunk of your income goes toward paying down debt, that means your DTI is high. In contrast, if a small...
Making principal-only payments can save you on interest over the life of the loan and help you build equity in the home faster. Buying a home is an exciting experience. There's nothing like receiving the keys to your home, especially after you’ve worked so hard to save for a down paym...
Take out long-term debt. Another way to improve the current ratio is to take a long-term loan for all of the current debt. By doing this, the current liabilities are completed eliminated which results in a terrific current asset ratio. The debt; however, is still there, but will be pai...
What Is an Asset in the Accounting Equation? Anassetis anything with economic value that a company controls and can be used to benefit the business now or in the future. Assets include fixed assets such as machinery and buildings as well as financial assets such as investments in stocks and...
services.The taxpayer shall compute the output tax for the period on the basis of t he sales value and collect the tax payable from the purchasers in addition to the pay ment on goods and services. If the sales prices of the goods and services are tax inclusive prices,the taxpayers ...
ratio in that it indicates how a company is funded, in this case, by debt. The higher the ratio, the more debt a company has on its books, meaning the likelihood of default is higher. The ratio looks at how much of the debt can be covered by equity if the company needs to ...
Compute the rate of return for the following cash flow How do you interpret a statement of cash flows in accounting? a) How do you calculate the cash flow from operations? How can you use this information to calculate an operating cash ratio? b) Do items such as cash in the bank, inve...
Compute the accounts receivable turnover and average collection period ratio for 2017. How to find/calculate average balance of accounts receivable? How to calculate average net accounts receivable? Explain calculation of the average balance in accounts receivable. How to determine how many...
cash value using the surrender value formula typically involves inputting the relevant data, such as the number of years the policy has been in force and the total premiums paid. Once you have the necessary information, you can apply the formula to obtain an estimate of the current cash ...