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Andrew [12]
2 years ago
8

Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent. What is the c

apital intensity ratio
Business
1 answer:
Ratling [72]2 years ago
5 0

An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.

Capital Intensity Ratio = Total Assets/Total Revenue

Return on assets = Net income/Total Assets

Total Assets = Net income/Return on Assets= $389,100/0.086

Total Revenue = Net income/Net Profit Margin = $389,100/0.028

Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33

This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.

Learn more about Capital Intensity Ratio here

brainly.com/question/14594640

#SPJ4

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In the context of the 5S principles, _____ means to keep a process going through training, communication, and organizational str
alina1380 [7]

In the context of the 5S principles, <u>sustain </u>means to keep a process going through training, communication, and organizational structures.

<h3>What is 5S principles? </h3>

5s principles can be defined as the principle that help to show the appropriate way a work place or work environment should be or should be arranges .

The 5S principle are:

  • Sort
  • Set in order
  • Shine  
  • Standardize
  • Sustain

Therefore In the context of the 5S principles, <u>sustain </u>means to keep a process going through training, communication, and organizational structures.

Learn more about 5s principles here:brainly.com/question/10001029

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5 0
2 years ago
18. In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capit
Sergio039 [100]

Answer:

$36,000

Explanation:

The computation of the adjusted gross income for the present year is as follows:

= Ordinary income + short term capital gain - short term capital loss + long term capital gain

= $35,000 + $3,000 - $6,000 + $4,000

= $36,000

Hence, the adjusted gross income for the present year is $36,000

The same is relevant

5 0
3 years ago
On August 1, 2009 a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest,
Leya [2.2K]

Answer:

discount on BP   8,000 debit

cash                592,000 debit

bond payable                       600,000 credit

-to record issuance of the bonds--

interest expense     15,416.67 debit

  interest payable                     15,000      credit

  discount on BP                           416.67 credit

--to record year-end adjustment entry--

interest payable   15,000      debit

interest expense   3,083.33 debit

  cash                                       18,000    credit

  Discount on BP                         416.67 credit

-to record first interest payment to bondholders--

Explanation:

proceeds from the bonds:  592,000

face value of the bonds.    (600,000)

discount on BP                        (8,000)

We amortize over the life of the bond in equal parts:

8,000 / 20 payment (10years x 2 payment per year) = 500

interest accrued from August 1st to December 31th:

face value x rate x time accrued

600,000 x 6% x 5/12 = 15,000

accrued proportional amortization

amortizationfor 6 months x accrued month

from Augsut 1st to December 31th

500 x 5/6 = 416.67

February 1st payment:

600,000 x 6% x 1/12 = 3,000 interest expense

cash outlay:

600,000 x 6% x 6/12 = 18,000

amortization 500 - 416.67 = 83.33

8 0
3 years ago
Isabelle, customer relations manager at future tools, inc., must inform her clients of a 25 percent price increase for all servi
Art [367]
In doing so, she should be sure to emphasize clients' options for saving money, such as bundling services or choosing less <span>comprehensive plans.
Telling this options will reduce the chance of that customer to stop using the service and move out to another competitor. Providing saving money options will give a reward for customers who are loyal to the company and make them feel valued.</span>
7 0
3 years ago
Strategic behavior is required to win a presidential election. For each example below, indicate if it is a rule, strategy, or pa
rosijanka [135]

Answer:

The Guidelines for how votes are counted and who can vote is a rule, it is backed up by the constitution as a way of directing the masses.

Choosing to campaign in states with a large number of electoral votes or so called swing states is a strategy, this involves coming up with the best approach or means to win in an election. Going to such states is a big strategy towards securing victory.

Emphasizing different messages to different voter groups is another strategy, this entails telling each of the people things that are their most needs in a bid to convince them to vote for you. It is a strategy that has always worked.

Securing endorsements and large campaign contributions is a payoff, it is an aftermath of popular acceptance by the people.

Limits on sources of fundraising and campaign contributions is a rule established by the states to encourage fair play in the electoral system or process.

Explanation:

see Answer

4 0
3 years ago
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