Activity ratios reflect the speed with which resources are converted to cash or sales.
Option E is correct answer .
Activity ratios :
Activity ratios measure how well a firm uses its assets. They reflect the speed with which resources are converted to cash or sales. A frequently used activity ratio is inventory turnover. The inventory turnover ratio measures the speed with which inventory moves through the firm and is became sales.
What is a high activity ratio?
A high ratio indicates that a corporation is using its total assets very efficiently or that it does not own many assets, to start with. a coffee ratio indicates that too much capital is tied up in assets and that assets are not being used efficiently in generating revenue.
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Answer:
5.6%
Explanation:
Internal growth rate can be calculated as below:
Internal growth rate = (Return on asset x Retention Rate)/[1 - (Return on asset x Retention Rate)]
Retention rate = 1 - Payout ratio = 1 - 30% = 70%
Return on asset = Net income/Asset = 82,490/1,089,500 = 7.6%
Putting all the number together, we have:
Sustainable growth rate = (7.6% x 70%)/[1 - (7.6% x 70%)] = 5.6%
The terms state there is a rent fee of 4% of sales up to $100,000 and 2.5% of sales over $100,000.
Monthly sales average $270,000. $250 Maintenance fee.
What is the average monthly rent plus maintenance fee?
($100,000)(0.04) = $4,000
($170,000)(0.025) = $4,250
Add the two amounts together = $4,000 + $4,250 = $8,250
Monthly rent averages $8,250 and the maintenance fee is $250 = $8,500/month.
Answer:
The effective rate on the bank loan is 27%
Explanation:
The effective rate of Interest
= ($11,800/$302,000)*(360Days/52days)
= 0.039*6.92
=27%
Answer:
The opportunity cost of that decision is - $250,000
Explanation:
For computing the opportunity cost, we have to use the formula of opportunity cost which is shown below:
= Return of project which is not chosen - the return of a chosen project
= $750,000 - $1,000,000
= - $250,000
Since in the question, it is given that the chosen project is X so we write the project X amount in the formula and the not chosen project of-course is Y.
Hence, the opportunity cost of that decision is - $250,000
