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Firlakuza
12 hours ago
3

Suppose that the financial ratios of a potential borrowing firm take the following values: Working capital/Total assets ratio (X

1) = 0.75 Retained earnings/Total assets ratio (X2) = 0.10 Earnings before interest and taxes/Total assets ratio (X3) = 0.05 Market value of equity/Book value of long-term debt = .60, X5 = Sales/Total assets ratio = 0.9. Calculate the Altman’s Z-score for this firm. Round your answer to 3 decimal places.
Business
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Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, what is B
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The net capital expenditure for Beta is 95.

Explanation:

To determine Beta's net capital expenditure, use the formula below

Closing PP&E + Depreciation Expense - Opening PP&E

= 170 + 75 - 150

= 95

In this computation, the depreciation expense is added, and the PP&E balance is subtracted from the closing PP&E balance to obtain a precise figure.

Alternatively, it can be calculated based on the capital expenditures derived from a company's income statement and balance sheet. Check for the depreciation expense recorded for the current period in the income statement and find the current period’s property, plant, and equipment in the balance sheet.

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3 months ago
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Washington Inc. issued $846,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $9,
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Answer:

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The bond discount upon issuance is $846,000 minus $829,080

Thus, the bond discount at issuance equals $16,920

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The un-amortized bond discount calculates to $16,920 - $9,840

This gives an un-amortized bond discount of $7,080

The redemption value of the bond is determined by 102/100 * $846,000

Thus, the redemption value of the bond is $ 862,920

Finally, the loss on bond retirement is given by the difference between the redemption value and (Bond Payable - Un-amortized bond discount)

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The loss on retirement of the bond calculates to $862,920 - $838,920

This results in a loss of $24,000

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