Answer:
3.20
Explanation:
The computation of the asset turnover ratio is shown below:
Total asset turnover = (Net Sales revenue ÷ Average Total assets)
= ($16,320,000 ÷ $5,100,000)
= 3.20
It shows a ratio between the net sales revenue and the average total assets.
All other information which is given is not relevant. Hence, ignored it
Answer:
$26,750
Explanation:
The computation of the adjusted cash balance is shown below;
= Debit balance in the cash account - bank service fees - NSF check from a customer
= $28,525 - $140 - $1,635
= $26,750
The other items would be relevant to the bank balance and therefore it should not be considered in the given case
Hence, the adjusted cash balance is $26,750
Answer:
Results are below.
Explanation:
Match each of the following formulas and phrases with the term it describes.
A) (Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour
This is the formula for Direct labor time (efficiency) variance
B) (Actual Rate per Hour - Standard Rate per Hour) × Actual Hours
This is the formula for Direct labor rate variance
C) (Actual Price - Standard Price) × Actual Quantity
This is the formula for Direct materials price variance
D) (Actual Quantity - Standard Quantity) × Standard Price
This is the formula for Direct materials quantity variance
E) Standard variable overhead for actual units produced
Budgeted variable factory overhead
Answer:
Pretax income= $122,500
Explanation:
Giving the following information:
Fixed costs= $72,500
Variable costs equal to 40% of sales.
Sales= $325,000
<u>To calculate the pretax income, we need to use the following formula:</u>
Pretax income= contribution margin - fixed costs
Pretax income= 325,000*(1-0.4) - 72,500
Pretax income= $122,500
Answer:
The worth of stock today is $12.17.
Explanation:
A Multi-Period Dividend Discount Model should be used to determine the worth of stock today.
<u>Year-1</u> <u>Year-2</u> <u>Year-3</u> <u>Year-4</u>
Dividends - $.80 $1.10 $1.50
Discount Factor - .7763 .6840 .6026
Present Values - .6210 .7524 .9039
Perpetuity (1.50)*(1 + 4%) = $1.56
Terminal Value = 1.56 / (13.5% - 4%) = $16.4210
PV of Terminal Value = Terminal Value * Discount Factor
⇒ PV of Terminal Value = 16.4210 * (1.135)^(-4) = $9.8950.
Add the Present values of Dividends with the PV of Terminal Value to get the Stock Price of Today.
⇒Stock Price = .6210 + .7524 + .9039 + 9.8950 = $12.17.
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