write a short note on capital gain, net worth, revolving credit and bad debt ratio

Expert Solution

Capital gain is a gain on selling of the capital assets and capital gain can be in form of short term capital gain and it can also be in form of long term capital gains.

Net worth of a company is related to overall worth of the company in terms of the shareholders value and net worth of the company can be calculated using dollar amount of the Asset after subtracting it with dollar amount of liability.

Revolving credit is a type of credit in which there is access to limit amount of money so you can borrow until you have reached the limit and it is also known as the credit limit.

bad debt ratio is the ratio of having higher amount of presence of bad debt in the overall books of accounts and it is the ratio of the bad debt to the overall loan

jeff jeffy answered 2 years ago

write a short note on bad debt ratio ,Net asset value of mutual fund ,emergency fund,...

write a short note on bad debt ratio ,Net asset value of mutual fund ,emergency fund, preferred stock

The debt/tangible net worth ratio: is the same as the debt ratio. has the same objectives...

The debt/tangible net worth ratio: is the same as the debt ratio. has the same objectives as the debt/equity ratio. includes both liabilities and shareholders' equity in the denominator. is a uniform computation across different companies.

Calculate your net worth and your debt ratio, current ratio, liquidity ratio, debt payment ratio, and...

Calculate your net worth and your debt ratio, current ratio, liquidity ratio, debt payment ratio, and inflows and outflows, do you have a shortage or surplus. Current Value of your home $330,000 Monthly gas $300.00 Balance of car loan $27,000 Monthly utilities $500.00 Balance of student loans $29,000 Monthly groceries $1100.00 Value of car $40,000 Monthly meals out $400.00 Balance of Mortgage $200,000 Monthly cable/internet $150.00 Household contents $19,000 Monthly cell phone $275.00 Stock portfolio 194,000 Monthly Miscellaneous $75.00 Balance...

Bass, a C corporation, has a net short-term capital gain of $20,000 and a net long-term...

Bass, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Bass also has taxable income from other sources of $1 million. a. Assume there are no prior year capital transactions. How are the 2019 capital gains and losses treated on Bass’ 2019 tax return and is there any potential impact to other tax years? b. If Bass were a proprietorship, how would Ellen, the owner, report these transactions...

Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term...

Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Ostrich has $425,000 in taxable income from other sources. Prior years’ transactions included the following: 2014 net short-term capital gains $10,000 2015 net long-term capital gains 18,000 2016 net long-term capital gains 15,000 2017 net short-term capital gains 25,000 2018 net long-term capital gains 5,000 Required: a. How are the capital gains and losses treated on Ostrich’s 2019...

What are the pros and cons of extending credit? Define net realizable value. Bad debt expense...

What are the pros and cons of extending credit? Define net realizable value. Bad debt expense should be recorded in same period as the sale to avoid violating the expense recognition (matching) principle. Under the allowance method an estimate of the bad debts are recorded and later adjusted. Describe the following two steps of the allowance method and provide the required journal entries. Adjust for estimated bad debts Remove (write off) specific customer balances Small companies are allowed to use...

Profit margin = 9.2 % Capital intensity ratio = .53 Debt−equity ratio = .68 Net income...

Profit margin = 9.2 % Capital intensity ratio = .53 Debt−equity ratio = .68 Net income = $ 103,000 Dividends = $ 52,000 Based on the above information, calculate the sustainable growth rate for Southern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

Short answer The Company uses the balance sheet approach to estimate bad debt expense. Credit sales...

Short answer The Company uses the balance sheet approach to estimate bad debt expense. Credit sales for the period were $10 million. The beginning balance in the allowance for doubtful accounts was a credit balance of $44,300. During the year, $41,000 of receivables were written off. The aging schedule suggests that the ending balance in the allowance for doubtful accounts is $51,500. What was bad debt expense for the period? Credit sales were $950,000. Cash flow from operating activities was...

Saunders Corp. has a book net worth of $11,150. Long-term debt is $2,300. Net working capital,...

Saunders Corp. has a book net worth of $11,150. Long-term debt is $2,300. Net working capital, other than cash, is $2,950. Fixed assets are $2,750 and current liabilities are $1,500. Required: (a) How much cash does the company have? (Click to select) 9,250 10,700 8,400 9,528 8,972 (b) What is the value of the current assets? (Click to select) 13,015 4,450 14,385 13,426 13,700

Jake Company records bad debt expense using the net credit sales method and has estimated that...

Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable at January 1, 2019...

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