If you’re in a business action class, you may be demography the Global Business Simulation Action Game, or for short, “Glo-Bus”. You will a lot of acceptable be demography two quizzes in this course, Glo-Bus Quiz 1, and Glo-Bus Quiz 2. Both quizzes will go over abstraction basics of the game, and abnormally Quiz 2 can accept actual difficult questions. Many of the questions are banking based. Here’s one archetype catechism that you will a lot of acceptable get.
Given the afterward Banking Account data:
Income Account Data Quarter 1
Sales Revenues $50,000
Operating Profit $14,400
Net Assets $9,555
Balance Sheet Data
Total Accepted Assets $70,000
Total Assets $149,000
Total Accepted Liabilities $26,000
L-T Debt (draw adjoin acclaim line) $33,000
Total Disinterestedness $90,000
Other Banking Data
Dividend payments $2,250
Based on the aloft figures, the company’s basic anatomy consists of what debt and disinterestedness percentages? (These percentages are one of the apparatus acclimated in free the company’s acclaim rating, as explained on the Help awning for the Comparative Banking Performance page of the GSR.)
Here are the 5 answers.
20% debt and 80% disinterestedness or 20:80.
27% debt and 73% disinterestedness or 27:73.
35% debt and 65% disinterestedness or 35:65.
37% debt and 63% disinterestedness or 37:63.
None of these.
So to acknowledgment this question, we have to attending at this assets account and achieve what debt and disinterestedness is.
Total Disinterestedness shows itself at $90,000, so that’s easy.
But the absolute harder allotment is deciphering what debt is. Believe it or not, but accepted liabilities isn’t allotment of “debt”. And that’s a aberration that humans make.
So debt is artlessly Long appellation debt at $33,000 But again what?
To amount out the actual ratio, the blueprint for debt ratio= debt/(debt+equity)
[And for agenda the disinterestedness ratio=equity/(debt+equity)]
Or accordingly 33,000/(33,000+90,000)=.268 or what equals 27%. Accordingly the debt arrangement is 27%, and the antithesis getting 73% is equity.
The actual acknowledgment is the additional one!