Adlington's debt-to-income ratio 18.1% = ($778 + $256 + $287 + $187) / ($100,000 / 12) b. Adlington's debt-to-income ratio is well below what is maximum desirable. They are in good shape for buying the vacation home now as long as their total monthly debt payments stay below about $3000 (($100,000 / 12) X .036). Since they have total monthly payments of $1508 now, that leaves room for, perhaps, a $1000-$1200 per month vacation home payment.

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease

Motonous corporation has completed its fiscal year and reported the following information. the company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. the firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. how much retained earnings does the firm have?

Acompany finances the purchase of equipment with a $500,000 5-year note payable. the note has an interest rate of 12% and a monthly payment of $11,122. after two payments have been made, what amount should the company report as the note payable balance in its december 31 balance sheet?