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Scrat [10]
3 years ago
5

The following amounts were taken from the financial statements of Ando Company: 2017 2016 Total assets $800,000 $1,000,000 Net s

ales 720,000 650,000 Gross profit 352,000 320,000 Net income 108,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock $42 $39 The price-earnings ratio for 2017 is
Business
1 answer:
Neko [114]3 years ago
8 0

Answer:

35 times

Explanation:

The price-earnings ratio is the financial ratio that compares the market price of a share with its earnings in order to determine whether the share gives earnings that makes it a good buy.

Price-earnings ratio=market price per share/earnings per share

market price per share for 2017 is $42

earnings per share=net income-dividends/average common stock outstanding

net income is $108,000

dividends is nil

average number of common stock is 90,000

earnings per share=$108,000-$0/90,000=$1.2

price earnings ratio=$42/$1.2=35 times

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Answer:

1. Under what condition(s) can an economy make a relatively quick and easy transition to full-employment level of output?

Classical economics are great theoretically, but actual evidence from real life is always against them. The problem with wages and unemployment is that wages are sticky, no one likes a wage cut and employees will always fight against them. That results in drastic changes in the level of unemployment, since it is easier to fire employees than lower their salaries.

When a demand shock occurs, and the aggregate demand curve shifts to the right, the aggregate supply curve will also shift. At this point, suppliers will need to hire more employees and fast since they cannot keep up with the demand. The problem is that in real life, demand shocks are sudden only in theory, no one will wake up tomorrow having twice the money and willing to spend it all immediately.

Classical economics work on the long run, but the problem is that the long run is not a definite point in time. We might actually never live to see the long run occur.

2. What condition(s) would keep an economy from moving back to full employment quickly and easily?

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Which member of the restaurant and food/beverage service career is most likely to plan menus and direct workers?
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Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the t
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Incremental revenue is often compared to production costs. The stained tables can be sold for $178,000.

<h3>What is incremental revenue?</h3>

Incremental revenue is the profit that a business earns through rising sales.

It can be used to determine the additional revenue generated by a particular product, investment, or direct sale from a marketing campaign when sales value has grown.

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the tables could be sold for $442,000 and after additional processing the tables can be sold for $620,000. The incremental revenue is equal to $620,000 - $442,000 = $178,000

Therefore,The stained tables can be sold for $178,000.

Learn more about incremental revenue here:

brainly.com/question/1446002

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