Sally Corporation Income Statement
Not what you're looking for?
My instructor posted a message in our classroom that said to show our work on our final and she would give us partial credit if we missed the answer to a problem but used the correct method. The attached spreadsheet shows the answers that I turned in and listed below are the correct answers that she gave. I didn't receive partial credit on these three problems. Please help me explain why I think I should have.
Problem 2: $80,000 + 25,000/25,000 = 4.2 times
Problem 3: 1 - 1.50 = .50 + 1.50 = 2.00 times
Problem 4: b = 1- Payout Ratio = 1 - .20 = .80
ROE = .14
Growth Rate = (.14 x .80)/(1 - .14 - .80) = .1120/.888 = .126 = 12.6%.
Purchase this Solution
Solution Summary
The solution assists with comparing answers to the correct answers and explains why one would not receive partial credits.
Solution Preview
See the attached file.
Question 2
Your argument should be that it was not clear whether you are looking for fixed charges other than interest ratio or total fixed charge ratio. Since interest is also a fixed charge, your interpretation of the question is also correct and you should be considered for partial credit. Interest is a fixed charge....stress this and get the ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations