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1 year ago

The company you are investigating recorded fictitious revenues. What is the effect on the asset turnover ratio?

Business

1 answer:

BARSIC [14]1 year ago

5 0

In case fictitious revenues are recorded asset turnover ratio will increase.

The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.

Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.

Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.

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A company's board of directors votes to declare a cash dividend of $1.10 per share of common stock. The company has 22,000 share

lutik1710 [3]

Answer:

$18,150

Explanation:

Calculation for the total amount of the cash dividend

Since A company's board of directors has votes to declare the cash dividend of $1.10 per share of common stock, this means we have to multiply the cash dividend per share of common stock by the shares outstanding which is $16,500

Using this formula

Cash dividend per share of common stock * Shares outstanding

Let Plug in the formula

$1.10*16,500

=$18,150

Therefore the total amount of the cash dividend will be $18,150

5 0

3 years ago

Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that freque

algol13

Price ceiling are measure employed by government to help the consumers by mandating a maximum price that the seller must charge for a product or service.

The measure of imposing price in market are rare but are notably used during natural disasters.

Price ceiling helps to prevent the producers from exploiting the consumers.

In conclusion, the major disadvantage of price ceiling is that when a price ceiling is set below the equilibrium price, the quantity demanded will exceed quantity supplied, thus, this will result to excess demand of goods and shortage in the market.

Learn more about Price ceiling here

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7 0

3 years ago

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat

Cerrena [4.2K]

Answer:

a. 208.57 units

b. 104.29 units

Explanation:

a. The computation of the economic order quantity is shown below:

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

$= \sqrt{\frac{2\times \text{6,000}\times \text{\$29}}{\text{\$8}}}$

= 208.57 units

b. And, the average inventory is

= Economic order quantity ÷ 2

= 208.57 units ÷ 2

= 104.29 units

We simply applied the above formulas for calculation of the economic order quantity and the average inventory and the same is shown above

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3 years ago

How do you say 0.000354

nikitadnepr [17]

Answer:

"Zero point zero zero zero three five four"

Explanation:

When you say the numbers after the decimal, you read each digit separately.

This is opposed to the number before the decimal, where you read the numbers together. (For example, 45.56 is forty-five point five six).

7 0

3 years ago

Read 2 more answers

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per U

olchik [2.2K]

Answer:

Fogerty Company

1. Computation of the Activity Rate for each Activity Cost Pool:

a. Machine setup = $31,590/243 = $130 per setup

b. Special processing = $282,000/4,700 = $60 per machine hour

c. General factory = $700,400/41,200 = $17 per direct labor hour

2. Computation of the Unit Product Cost, using activity-based absorption costing:

Titanium Hubs Sprockets

Direct materials $39.00 $39.00

Direct labor $14.40 $7.20

Overhead $23.93 $7.11

Total unit cost $77.33 $53.31

Explanation:

a) Data:

Titanium Hubs Sprockets

Direct Labor-Hours per Unit 0.80 0.40

Annual Production 29,000 units 45,000 units

Direct materials $39 per unit $12 per unit

Direct labor wage rate is $18 per hour

Total direct labor hours 23,200 hours 18,000 hours

Direct labor cost $417,600 $324,000

Direct labor cost per unit $14.40 $7.20

Direct materials costs $1,131,000 $540,000

Activity costing system for Overhead Costs:

Titanium Hubs Sprockets Total

Activity Costs

Machine setups

(number of setups) $31,590 135 108 243

Special processing

(machine hours) $282,000 4,700 0 4,700

General factory

(direct labor hours) $700,400 23,200 18,000 41,200

Activity Rate:

a. Machine setup = $31,590/243 = $130 per setup

b. Special processing = $282,000/4,700 = $60 per machine hour

c. General factory = $700,400/41,200 = $17 per direct labor hour

d) Determination of overhead per unit cost

Titanium Hubs Sprockets

Machine setup $17,550 $14,040

Special processing $282,000 $0

General factory $394,400 $306,000

Total overhead $693,950 $320,040

Annual Production 29,000 units 45,000 units

Overhead cost per unit $23.929 $7.112

e) Activity-based costing system is a costing technique where costs are grouped into activity pools and the costs to be allocated to each product or service depends on its consumption from the activity pools involved. The identification of activities in an organization is a way of explaining that costs are caused by activities and not by their nature or period incurred.

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3 years ago