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guapka [62]
3 years ago
14

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

sales $ 33,200 $ 86,900 Cost of goods sold (15,440 ) (63,050 ) Gross margin 17,760 23,850 Less: Operating exp. Selling and admin. exp. (11,760 ) (15,348 ) Net income $ 6,000 $ 8,502 *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Denver and Reno. (Round your answers to the nearest whole number.)
Business
1 answer:
Lynna [10]3 years ago
6 0

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver  = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver  = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

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Approximately 80% of the population on Madagascar consists of subsistence farmers who use a slash and burn technique called Tavy to clear forests. This traditional Malagasy farming method Taly is used to clear forest for farming land. The method involves setting vegetation alight after being cut down, creating potential land for rice cultivations.

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3 years ago
Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline
love history [14]

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

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7 0
3 years ago
Your bank card has an APR of 21% and there is a 3% fee for cash advances. The bank starts charging interest on cash advances imm
avanturin [10]

Answer:

Total finance charge=$23.75

Explanation:

<em>The amount charged for the use of the fund by a bank is called interest rate. Here it is quoted as 21% per annum but we will need to determine the approximate monthly rate by dividing by 12</em>.

The total finance charge will be equal = Interest rate + advance fee

Monthly interest rate = 21/12 =1.75%

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Total finance charge = $8.75 +  $15= $23.75

Total finance charge=$23.75

6 0
2 years ago
Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $948. At this pric
IrinaK [193]

Answer:

Coupon rate is 5.17%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Assuming Face value of the bond is $1,000

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Selling price = P = $948

Number of payment = n = 9 years

Bond Yield = 5.9%

The coupon rate can be calculated using following formula

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

5.9% = [ C + ( $1,000 - $948 ) / 9 ] / [ ( $1,000 + $948 ) / 2 ]

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5.9% x $974 = C + $5.78

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4 0
3 years ago
Come up with 3 companies you would like to invest and why?
Sonbull [250]
This is easy just think of some store or restaurant that you would like to start and tell why
ex.i would like to start a restaurant called Beverly's because i love to cook and Beverly is my family name
(good luck and hope this helps)
3 0
3 years ago
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