Please answer these questions and give an explanation as to the answer: Question 1 What ratio measures the...

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Accounting

Please answer these questions and give an explanation as to theanswer:

Question 1

What ratio measures the underlying risk of a company?

Question 2

Gaston Co. reports the following cash activities for theyear:

Receive cash from customers

$100,000

Pay cash to purchase building

$90,000

Receive cash from issuance of stock

$50,000

Pay cash for employee salaries

$40,000

Pay cash for dividend to stockholders

$20,000

Receive cash from sale of land

$70,000

Pay cash for repayment of borrowing

$80,000

Receive cash from long-term borrowing

$60,000

Pay cash for purchase of supplies

$30,000


Calculate the amount of investing cash flows?

Question 3

Clothing Emporium was organized on January 1, 2015. The firm wasauthorized to issue 100,000 shares of $5 par value common stock.During 2015, Clothing Emporium had the following transactionsrelating to shareholders' equity:

Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.

What is the total amount recorded in the Common Stock account atthe end of 2015?

Question 4

Gaston Co. reports thefollowing amounts:
Net income

$25,000

Depreciation Expense

$4,000

Increase in Accounts Receivable

$1,000

Issuance of common stock

$15,000

Decrease in Taxes Payable

$3,000

Sale of land

$20,000

Loss on the sale of land

$2,000

Payment of dividends

$5,000


Calculate the amount of operating cash flows:

Answer & Explanation Solved by verified expert
4.0 Ratings (820 Votes)
Debt to equity ratio measures the underlying risk of the company The debt to equity ratio is calculated by dividing a companys total liabilities by its    See Answer
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