1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helga [31]
3 years ago
13

Spears Co. had net sales of $53,404 million. Its average total assets for the period were $16,302 million. Spears' total asset t

urnover equals:
Business
1 answer:
liraira [26]3 years ago
7 0
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000

Total asset turnover is calculated by divided net sales by the average total assets.

Total asset turnover = net sales / average total assets 
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3

The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue. 
You might be interested in
A bank has $50 million in assets, $47 million in liabilities and $3 million in shareholders' equity. If the duration of its liab
Alisiya [41]

Answer: 1.222

Explanation:

The Average duration can be derived from the formula:

Assets * Average Duration = Liabilities * Duration of Liabilities

Average Duration = (Liabilities * Duration of Liabilities) / Assets

= (47,000,000 * 1.3) / 50,000,000

= 61,100,000 / 50,000,000

= 1.222

5 0
2 years ago
During the Reagan administration, the Laffer curve was used to argue that: a. lower income tax rates could increase tax revenues
solniwko [45]

Answer:

A) lower income tax rates could increase tax revenues.

Explanation:

The laffer curve is a theoretical model which argues that there a tax rate that theoretically produces the most revenue for the government. Said tax rate is between 0% and 100%.

President Reagan used this model to argue that a lower tax rate would actually increase government revenue. The logic behind this claim was that lower tax rates increases both public and private saving, which in turn increases investment, resulting in more economic growth, and more taxable income.

The validity of these claims is dispute and is subject to debate among economists.

6 0
3 years ago
Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year. Sales revenue is $
notka56 [123]

Answer:

Sheffield Company

Inventory Turnover Ratio = Cost of goods sold/Average Inventory

= $1,145,400/$138,000

= 8.3 times

Explanation:

a) Data and Calculations:

Beginning inventory = $145,000

Ending inventory = $131,000

Average inventory = (Beginning inventory + Ending inventory)/2

= ($145,000 + 131,000)/2

= $138,000

Sales revenue = $1,972,800

Cost of goods sold = $1,145,400

Net income = $248,400

b) The inventory turnover ratio for Sheffield Company  is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period.   This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year.  When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.

7 0
3 years ago
Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 millio
kari74 [83]

Answer: a. Liabilities increased by $1.0 million in 2018

Explanation:

In 2018, $9 million was used to settle the wage debt of 2017 and the remainder was used to settle the wages in 2018.

The money remaining in cash after the wage settlement was:

= 9,000,000 - 2,000,000 - 8,000,000

= -$1,000,000

This means that $1,000,000 of wages was not settled in 2018 which means that this would have to go to the Wages Payable account to signify that the company owes wages.

This account is a liability account so liabilities in 2018 would increase by $1,000,000.

6 0
3 years ago
C.B. Management, Inc., had a franchise agreement with McDonald’s Corp., to operate McDonald’s restaurants in Cleveland, Ohio. Th
statuscvo [17]

Answer:

Who is the franchisor?  McDonald's

Who is the franchisee?  C.B. Management Inc.

In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.

The franchise relationship is defined by the <u>contract</u>.

Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?  YES

Why?  A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.

Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO

What does an implied covenant of good faith and fair dealing require? That the parties act <u>reasonably</u>.

Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO

Why? Which one of these reasons is not correct? B) the actions of the parties control this issue.

A court would likely find for <u>McDonald’s</u>

8 0
3 years ago
Other questions:
  • Dividing an organization’s manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of groupin
    9·1 answer
  • Naira is a consumer research and market analyst. She prepares questionnaires that are designed to identify a consumer's distingu
    11·1 answer
  • Refer to the production possibilities curve. At the onset of the Second World War, the Soviet Union was already at full employme
    12·1 answer
  • The circulation of the ocean currents in the southern hemisphere is generally
    9·1 answer
  • Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 10 percent, has a YTM of 8 percent,
    7·1 answer
  • 1. The crucible is not fired, as the procedure suggests. The mass of the dirty crucible is recorded. However, the impurities are
    10·1 answer
  • "It is ethical for a firm to have a policy to sell goods or services to people who cannot afford them or to people who should no
    13·1 answer
  • f a company is to respond successfully to change, it must be able to _____ and _____, which is known as the _____ approach.
    10·1 answer
  • As an employer, you need to provide ___________ to an employee before that person can fill out their tax return.
    11·1 answer
  • The reserve requirement is 15 percent. Lucy deposits $600 into a bank. By how much do excess reserves change
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!