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a_sh-v [17]
2 years ago
8

Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's has a fixed asset turnover rate of

1.15 and a total asset turnover rate of 0.88. Both companies have similar operations. Based on this information, Dee's must be doing which one of the following? A. utilizing its fixed assets more efficiently than Sam'sB.utilizing its total assets more efficiently than Sam'sC. generating $1 in sales for every $1.12 in net fixed assetsD. generating $1.12 in net income for every $1 in net fixed assetsE. maintaining the same level of current assets as Sam's
Business
1 answer:
Andreyy892 years ago
5 0

Answer:

B.utilizing its total assets more efficiently than Sam's

Explanation:

Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88. Both companies have similar operations.

Based on this information, although Sam seems to be utilizing its fixed assets more efficiently, <u>Dee's must be doing utilizing its total assets more efficiently than Sam's</u>

<u>The fixed asset turnover ratio is an efficiency ratio that measures a companies return on their investment in property, plant, and equipment by comparing net sales with fixed assets. In other words, it calculates how efficiently a company is a producing sales with its machines and equipment.</u>

Dee's has a total asset turnover rate of 0.91 compared to a total asset turnover rate of 0.88 by Sam. Hence Dee's efficiency is higher.

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The average compound return earned per year over a multi-year period is known as the geometric average return.

<h3>What is an Average Return?</h3>

An average return is a mathematical average value of a number of returns generated over a specific period of time. An average return helps in measuring the past performance or portfolio of an individual or government.

When an average compound return is earned per year over a multi-year period, then it is known as the geometric return of that individual or government.

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4 0
2 years ago
Briefly explain how the government uses taxation as a redistribution method
crimeas [40]

Answer:

The purpose of this is to increase economic stability.

8 0
3 years ago
Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $480,
Olin [163]

Answer:

b. 320000

Explanation:

In order to calculate the joint cost of Gorp we need to understand what the method means and how it's used to calculate it. The adjusted sales method is used to allocate joint costs based on the prices the products are sold.

First of all we need to calculate the percentage of Selling price of Gorp to that of the total selling price of both Gorp and Gumm.

I.e: 60 ÷ (60+30) × 100

SP % of Gorp= 66.67%

Now we calculate joint cost allocated to Gorp.

Total joint cost of both Gorp and Gumm = $480000

Joint cost of Gorp = $480000 × 66.67%

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3 0
3 years ago
Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the strai
ElenaW [278]

Answer:

Explanation:

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.

8 0
3 years ago
On January 2, 2020, Pronghorn Company sells production equipment to Fargo Inc. for $52,000. Pronghorn includes a 2-year assuranc
Yanka [14]

Answer:

January 2, 2020

Dr Cash $52,000

Cr Sales Revenue $52,000

December 31, 2020

Dr Warranty expense $890

Cr Cash $890

December 31, 2020

Dr Warranty expense$640

Cr Warranty Liabiltiy $640

Explanation:

Preparation of the journal entry to record this transaction on January 2, 2020, and on December 31, 2020.

January 2, 2020

Dr Cash $52,000

Cr Sales Revenue $52,000

December 31, 2020

Dr Warranty expense $890

Cr Cash $890

December 31, 2020

Dr Warranty expense$640

Cr Warranty Liabiltiy $640

6 0
2 years ago
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