A producer's market means higher prices. True False

Torrid Romance Publishers has total receivables of $2,800, which represents 20 days’ sales. Total assets are $73,000. The firm’s

Marizza181 [45]

Answer:

ROA=4.13

Asset turnover ratio = 0.70 times

Explanation:

1.Computation for ROA

Using this formula

ROA=Net income/Total assets

First step is to find Day's sales in receivables before calculating for the sales amount

Day's sales in receivables = Numbers of days in a year/Total receivables days sales

Let plug in the formula

Day's sales in receivables = 365 / 20

Day's sales in receivables = 18.25times

Now let find the Sales amount using this formula

Sales= Day's sales in receivables× Total receivables

Let plug in the formula

Sales = 18.25 times × $2,800

Sales=$51,100

Second step is to find the Net income

Using this formula

Net income =Percentage of Operating margin× Sales amount

Let plug in the formula

Net income=5.9%×$51,100

Net income =$3,014.90

Now let find the ROA using this formula

ROA=Net income/Total assets

Let plug in the formula

ROA=$3,014.90/$73,000

ROA=0.0413×100

ROA=4.13%

Therefore ROA will be 4.13%

2. Computation for asset turnover ratio

First step is to calculate for the Receivables turnover

Using this formula

Day's sales in receivables = Numbers of days in a year/Total receivables days sales

Let plug in the formula

Day's sales in receivables = 365 / 20

Day's sales in receivables = 18.25times

Second step is to find the Sales amount using this formula

Sales= Day's sales in receivables× Total receivables

Sales = 18.25 times × $2,800

Sales=$51,100

Now let calculate for the Asset turnover ratio using this formula

Asset turnover ratio = Sales / Total assets

Let plug in the formula

Asset turnover ratio= $51,100 / $73,000

Asset turnover ratio= 0.70 times

Therefore asset turnover ratio will be 0.70 times

3 0

3 years ago

Which of the following statements provides the most accurate comparison of socialism and communism? A. Under socialism, the gove

Andreas93 [3]

Answer: Option (B) is correct

From the given options, the following statements is most suitable: Both socialism and communism, achieves equal distribution of income and wealth, but in communism, the state takes more control over individual's lives.

Communism can be referred to as a political and economic principle that aims to reinstate private economy with public ownership and thereby gaining a control of means of production and the resources of a state.

Socialism can be referred to as a social and economic principle that aims for public rather than private ownership. According to this perception, individuals do not work in desolation but live in cooperation.

3 0

4 years ago

If a company has a capital structure of $5,000,000 common stock with a cost of 17%, $2,000,000 bonds at 4%, $1,000,000 of short

rjkz [21]

Answer:

Explanation:

Weighted Average Cost of Capital; formula is as follows;

WACC = wE*re + wP*wp + wD*rd(1-tax)

where w= weight of...

r = cost of ...

E= common equity

P = preferred stock

D = Debt

Find the weights of each source of capital;

WACC = (0.50*0.17) +(0.20*0.03) + [0.20*0.04(1-0.40)] +[0.10*0.07(1-0.40)]

WACC = 0.085 +0.006 + 0.0048 + 0.0042

WACC = 0.1 or 10%

3 0

3 years ago

What is the amount of money you still owe to their credit card company called?

lukranit [14]

The correct answer is: A. credit card interest

4 0

4 years ago

What is a circular economy?

Brums [2.3K]

Answer:

Circular economy is a type of system that makes use of resources in a close-looped. Basically, they make use of resources with the aims to limit the production of waste by using the resources up to its utmost limit and refurbishing it, recycling it, or reusing it again.

This is akin to how biological systems work where as materials are recycled through the different systems and the products are repurposed for another process, so on and so forth.

6 0

3 years ago