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2 years ago

Return on assets is computed as net income divided by total assets. true false question. true false

Business

1 answer:

zvonat [6]2 years ago

5 0

The statement, return on assets is computed as net income divided by total assets, is true.

Return on assets (ROA) is a profitability ratio, which measures that how efficiently a company uses the assets it owns to generate profits. If a company wants increase the return on assets then the company tries to increase the profit margin.

So the return on asset of a company is computed by dividing the net income earned by the company by average total assets employed by the company. Thus, it measures how much percentage of profit the company is generating in respect to its assets.

Hence, the higher the percentage of return on assets, the better it is.

To learn more about return on assets here:

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Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in

dolphi86 [110]

Answer:

$341,000

Explanation:

The lower of cost or market (LCM) is an inventory valuation method that values and records inventories on the balance sheet date at either the historical cost or the market value.

Note that this question is merged together, but it first separated first before answering the question as follows:

For product A, Cost price is $110,000, while Marker price is $120,000. Since the Cost price of $110,000 is lower, it therefore used to value and report Product A.

For product B, Cost price is $80,000, while Market price is $76,000. Since the Market price of $76,000 is lower, it therefore used to value and report Product B.

For product C, Cost price is $155,000, while Market price is $162,000. Since the Cost price is $155,000 is lower, it therefore used to value and report Product C.

Therefore, we have:

The value of the inventory = $110,000 + $76,000 + $155,000 = $341,000

Therefore, the value of the inventory reported on the balance sheet would be $341,000.

4 0

3 years ago

your grandma tells you a dollar doesn’t go as far as it used to. She says the “purchasing power” of a folla is much less than it

Anna71 [15]

Answer:

Yeah the granny's right in her own way.

Explanation:

Due to inflation, which means the rise in price of goods and services, the amount that one can buy for their money; known as, "buy for money", and "purchasing power" has reduced. This phenomenon shows that when the price goes up, the quantity that can be purchased for the same price goes down.

This is an interesting relationship between inflation and deflation like mentioned above . Less buy for money (per dollar) during inflation (of price) and vice versa during deflation.

7 0

3 years ago

Read 2 more answers

1. In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expec

Juli2301 [7.4K]

Answer:

1. In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $40 in annual dividends.

$200,000 / 5,000 = $40

2. If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from $12.06 in Year 1 to $14.70 in Year 2.

$4,822,000 / 400,000 = $12.055

$5,881,750 / 400,000 = $14.70

3. Blue Hamster’s before interest, taxes, depreciation and amortization (EBITDA) value changed from $10,500,000 in Year 1 to $13,125,000 in Year 2.

$30,000,000 - $19,500,000 = $10,500,000

$37,500,000 - $24,375,000 = $13,125,000

4. It is incorrect to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings. This is because all but one of the item reported in the income statement involve payments and receipts of cash.

depreciation and amortization expenses are not cash outflows.

Explanation:

this question is incomplete and we must prepare the income statement for next year:

sales 37,500,000

variable costs (24,375,000)

fixed costs (1,200,000)

EBIT 11,925,000

interest expense (1,788,750)

Pretax income 10,136,250

income taxes (4,054,500)

net income 6,081,750

preferred stock dividends 200,000

common stock dividends 1,824,525

8 0

4 years ago

2. Give three (3) importance of Entrepreneurship to the economy.

Firlakuza [10]

Answer:

See below

Explanation:

1. Entrepreneurs Add to National Income

Entrepreneurship creates new businesses that focus on making profits. These ventures employ people who earn directly or indirectly from them. The new incomes add to a country's GDP. Consequently, the government collects higher revenues through taxation, which it uses for national development.

2. Entrepreneurs Create Social Change

Though innovations and creativity, entrepreneurs introduce new products and services and easier ways of doing things that improve life's quality. For example, the advancement of internet technology has created many job opportunities while still making it possible for others to work and earn a living remotely.

3. Community Development

Through Corporate social responsibility programs, entrepreneurs play a significant role in community development. Corporates globally have funded projects that provide communities with essential services: water projects, schools, hospitals, and clean environments that have been financed by entrepreneurs.

4 0

3 years ago

Grieg Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land fo

ziro4ka [17]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0

3 years ago