Answer:
The correct answer is B.
Explanation:
Giving the following information:
The current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000.
To calculate the price index we need to make a simple division:
Price index= P1/P0
PI= 2,500/2,000= 1.25*100= 125%
Answer:
C. Equity Financing
Explanation:
Based on all the details and financial steps that Jacob and Harry have undergone it seems that they are using Equity Financing. This type of financing refers to selling stocks of the company in order to raise capital, and making the investors partial owners of the company. Which is what Jacob and Harry seem to be doing by selling stocks of the company to family and friends in order to raise the capital they need to fund their business.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
a) DuPont analysis for Johnson International
2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%
2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%
2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%
b) DuPont analysis for industry averages
2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%
2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%
2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%
c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.
Explanation:
The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:
R
OE = net pro
fit margin x total assets turnover x financial leverage
Answer:
The correct answers are letters "C" and "D": Jane's Schedule C net profit; Qualified Publicly Traded Partnership (PTP) income.
Explanation:
The Qualified Business Income Deduction or QBI allows up to 20% of deductions for people who file small businesses taxes in personal statements. The rule mainly applies to all those activities developed in a sole proprietorship. Capital gains, losses, dividends, and interest are not eligible for this type of deductions. A schedule C (form 1040) or a qualified Publicly Traded Partnership (PTP) income can be subject to this deduction.
