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2 years ago

Profitability measures such as return on assets (roa) and return on equity (roe) are ___ rates of return.

1 answer:

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Profitability measures such as return on assets (roa) and return on equity (roe) are accounting rates of return.

Profitability ratios measure the ability of a firm to generate profits from its asset. Examples of profitability ratio are return on equity, return on assets, gross profit margin, return on invested capital and return on capital employed.

Return on equity calculates the efficiency with which a firm generates returns to its shareholders. The higher the return on equity is, the more efficient it is for the firm to generate income for its shareholders. Return on equity is the ratio of net income to total equity.

Return on equity = net income / average total equity

The return on asset is used to determine how much profit a firm can generate from its assets. Return on asset is net income divided by total assets. It is an example of a profitability ratio. The higher the return on assets, the more efficient it is in generating income from its assets.

Return on total assets = Net income / average total assets

To learn more about return on total assets, please check: brainly.com/question/26513286

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The following monthly data are available for Coronado Industries. which produces only one product: Selling price per unit, $38;

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Answer:

The correct answer is C.

Explanation:

Giving the following information:

Selling price per unit= $38

Unit variable expenses= $14

Total fixed expenses= $42,000

Actual sales for June= 3000 units.

First, we need to calculate the break-even point in dollar using the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 42,000/ [(38 - 14)/38]

Break-even point (dollars)= $66,500

Now, we can calculate the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= (3,000*38 - 66,500)

Margin of safety= (114,000 - 66,500)

Margin of safety= $47,500

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3 years ago

On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On J

o-na [289]

Answer and Explanation:

The preparation is presented below:

<u> McDaniel Company </u>

<u> Partial balance sheet</u>

Particulars Amount

Current liabilities

Note payable $250,000

Long term debt

Note payable refinance $950,000

Total liabilities $1,200,000

We simply added the long term debt and the current liabilities so that the total liabilities could come

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3 years ago

What can you conclude about the relationship between the slope of the demand curve above and its elasticity?

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Answer:

By definition, the price elasticity of demand equals the percentage changes in the quantity demanded divided by the percentage changes in the price. There is an opposite relationship between the demand elasticity and the slope of the demand curve.

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3 years ago

Imagine that you are a consultant, and have been hired by Rosewell's board of directors to examine decision making within the fi

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Explanation:

Executive Information System (EIS) is a specialised form of decision making support system designed to give management level employees background information on topics both internal and external to the company. Using this information, they are then guided by the governance policies and standard operating procedures of the company in the decisions they need to make, considering environmental factors, availability of resources and time constraints. The Information Systems models contain routine and special statistical, financial, and other quantitative analysis.

According to Computer Business Research, “the focus on Executive Information Systems is on easy to use user interfaces and graphical displays. The benefits of this is that they offer strong reports and drill down capabilities. Executive Information Systems are important because they help top-level executives analyze, compare and highlight trends in important areas so they can monitor performance and identify opportunities and problems. Over recent years however, the popularity of Executive Information Systems has decreased due to Business Intelligence, analytic(s), and digital dashboards.”

Steps followed in implementing EIS

1. Undertake research – the consultant has to find out what is applicable to the company specifically, looking at the company size, its resources, and other factors that affect information systems.

2. Compare and benchmark with best practices globally, regionally and locally.

3. Procure and/or Install the EIS.

4. Check if it is operating effectively. Also train the end users on how to make efficient use of the information system.

5. Keep monitoring and evaluating the system

N.B: Questions are required to give a more precise answer

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3 years ago

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The upside of changing its assembling frameworks is to enhanced item quality and lessened preparing time.
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3 years ago