If a Company Has Long-Term Borrowings of £12,000 and Equity

question 11

Multiple Choice

If a company has long-term borrowings of £12,000 and equity of £138,000,what is its gearing ratio?

• A) 8.7%
• B) 11.5%
• C) 8%
• D) 9.5%

Understand the method and applications of least squares in time-series analysis.

Calculate seasonal indexes and adjust time series data for seasonality.

Interpret the results and forecasts from quadratic and linear model fits to time-series data.

Apply regression techniques to calculate linear trend lines for various datasets.

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Definitions:

Fixed Order Costs

Expenses that do not change with the quantity of inventory ordered, such as delivery charges or processing fees.

Purchase Price

The amount paid to buy a good, service, or asset.

Collection Period

The average number of days it takes a company to collect payments after a sale has been made.

Aging Schedule

A table or report that shows the amounts of accounts receivable broken down into categories by the length of time they have been outstanding.