Ask question

Ask question

All categories

2 years ago

13

The Bottlebrush Company has income from operations of $60,000, invested assets of $345,000, and sales of $786,000. Use the DuPon

t formula to calculate the rate of return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) rate of return on investment. Round profit margin and rate of return on investment to two decimal places. Round investment turnover to three decimal places.

1 answer:

creativ13 [48]2 years ago

8 0

Answer:

Return on Investment

60,000/345,000 = .173913043

net profit margin:

60,000/786,000 = 0.076335877

return on assets

60,000/345,000 = .173913043

assets turnover

sales/assets = 2.27826087

Explanation:

income from operation 60,000

invested assets 345,000

sales 786,000

net profit margin:

60,000/786,000 = 0.076335877

return on assets

60,000/345,000 = .173913043

assets turnover

sales/assets = 2.27826087

$ROE = Profit.Margin\times AssetsTO\times Leverage\\\\ROE = Profit.Margin\times AssetsTO\times \frac{Assets}{Equity}$

.173913043 = 0.076335877 x 2.27826087 x 345,000/Equity

Equity = 345,000

Return on Investment

60,000/345,000 = .173913043

You might be interested in

A business-level strategy addresses: Group of answer choices how a business should define its mission and vision. how an organiz

Pavel [41]

Product organisation is the grouping of sales and production efforts of a business as per the line of products and services of the business. This kind of organisation is chosen by businesses when they have some different product lines and they require special expertise for marketing and distributing them.

8 0

2 years ago

A structure was built five years ago. Because of exceptional upkeep, the appraiser estimates the structure's condition today to

frosja888 [35]

Based on the useful life and the appraised age of the house, the effective age is <u>3 years.</u>

<h3>What is the effective age?</h3>

It is the age of a structure based on its physical condition and upkeep.
It is found by subtracting the remaining economic life from the economic life of the structure.

As a result of the physical condition and upkeep of the property, the appraiser estimates it to be equivalent to a 3 year old home. This is therefore the effective age.

Find out more on appraisals at brainly.com/question/15032807.

6 0

2 years ago

After meeting with your new client, you prepared his statement of financial position and pie charts. Which part of the financial

yuradex [85]

Answer:

Analyzing the client's personal and financial circumstances.

Explanation:

The Financial Planning process is the process involved in planning and formulating certain strategies for the client. The professionals' design plannings and strategies based on the financial situation of the client. They consider every aspect of the financial situation of the client. There is a total of six steps involved in the planning process. Analyzing and evaluating the financial status of the client comes under the third step.

8 0

3 years ago

During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a: a. no

Ivanshal [37]

Answer:

a. non-sampling risk.

Explanation:

A non-sampling risk includes all the audit risk other than the sample risk and is stated as the probability of getting to an incorrect conclusion in the site of having a correct sample. Examples include the inappropriate audit procedures.

7 0

3 years ago

Explain in detail how Boulders Mall's management may have used media relations as a public relations tool to try to resolve cont

Arada [10]

Explanation:

The management of Boulders Mall made use of the media to offer an apology for what happened in the shopping center, making it clear that there was not actually an act of discrimination due to the way the man dressed in traditional Ndebele clothes dressed and clarifying that in no case At the time, man was discriminated against because of his culture or his traditions.

This was a public way of "calming" the controversies and upsets that could have been generated in many people, because we must remember that this type of action can generate rejection by the community towards the shopping center and generate great economic losses.

4 0

2 years ago