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hoa [83]
3 years ago
12

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equi

pment (net) $1,412,700 Liabilities: Current liabilities $165,000 Note payable, 6%, due in 15 years 831,000 Total liabilities $996,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,494,000 Common stock, $10 par (no change during year) 1,494,000 Retained earnings: Balance, beginning of year $1,594,000 Net income 601,000 $2,195,000 Preferred dividends $59,760 Common dividends 143,240 203,000 Balance, end of year 1,992,000 Total stockholders' equity $4,980,000 Sales $27,384,550 Interest expense $49,860 Assuming that total assets were $5,677,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Business
1 answer:
choli [55]3 years ago
6 0

Answer:

a.  Ratio of fixed assets to long-term liabilities = fixed assets / long term liabilities =  $1,412,700 / $831,000 = 1.7

b.  Ratio of liabilities to stockholders' equity = liabilities / equity = $996,000 / $4,980,000 = 0.2  

c.  Asset turnover = total revenue / average assets = $27,384,550 / [($5,976,000 + $5,677,000)/2] = 4.7

d.  Return on total assets = (net income + interest expense) / average assets = ($601,000 + $49,860) / [($5,976,000 + $5,677,000)/2] = 11.2%

e.  Return on stockholders’ equity = net income / average stockholders' equity = $601,000 / {[($1,594,000 + $1,494,000 + $1,494,000) + $4,980,000] / 2} =  $601,000 / {($4,582,000 + $4,980,000) / 2} = $601,000 / $4,781,000 = 12.57%

f.  Return on common stockholders' equity = (net income - preferred dividends) / average common stock = ($601,000 - $59,760) / $1,494,000 = 36.2%

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Assuming that there are no income taxes, what would be the ROI and residual income, respectively, for this equipment, which has
anygoal [31]

Please see complete question below :

CPA-08299: Managers of the Doggie Food Co. want to add a bonus component to their compensation plan. They are trying to decide between return on investment (ROI) and residual income (RI) as the performance measure they will use. If Doggie adopts the RI performance measure, the relevant required rate of return would be 18%. One segment of Doggie is the Good Treats division, where the manager has invested in new equipment. The operating results from this equipment are as follows:

Revenues $ 80,000

Cost of goods sold 45,000

General and administrative expenses 15,000

Assuming that there are no income taxes, what would be the ROI and RI for this equipment that has an average value of $100,000?

ROI RI

Answer:

ROI =  20% and RI = $2000

Explanation:

Return On Investment(ROI) = Profit before Interest & Tax/Average Investment

Profit before Interest & Tax (PBIT) = Revenue -cost of goods sold- General & Adm expenses

PBIT= $ 80,000 - $45,000 -$15,000

      = $20,000

ROI = ($20,000/100,000) * 100% = 20%

Residual Income = PBIT - (Average Investment* Required Rate of Return)

                            =$20,000- (18%* 100,000)

                           =$20,000- $18,000

                           = $2000

5 0
3 years ago
Badan
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Answer:

check it

Explanation:

Which statement explains why Elie Wiesel most likely wrote All Rivers Run to the Sea as a memoir?

to reveal the traumatic impact the Holocaust had on his life

to persuade world leaders to take action against oppression

to provide a historical account of Poland during World War II

to convince other Holocaust survivors to share their stories

7 0
3 years ago
The country of Yokovia does not trade with any other country. Its GDP is $20 billion. Its government collects $2 billion in taxe
lana66690 [7]

Answer:

c. -$1 billion and $3 billion.

Explanation:

GDP = C + I + G

 20  = 15 + 2 + G

G = 20 - 15 - 2 = 3

The government spending is 3 billion. which makes only option c or d correct.

Now we need to solve for public savings:

Taxes -  Goverment Spending  = Public savings

2 - 3 = -1

the government runs with a 1 billion deficit.

This makes option c correc

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3 years ago
Air used for cleaning should be regulated to ____ psi unless equipped with OSHA-compliant diffuser nozzles.
Shtirlitz [24]
Is this true of false? i would need more info
4 0
3 years ago
(c) the limits of the terms of trade are determined by the comparative cost conditions in each country before trade: 1a
Lorico [155]

The limits of the terms of trade are determined by the comparative cost conditions in each country before trade:

Less commerce occurs as a result of partial specialization and rising costs than when costs are constant. The cost advantage one country has over another serves as the foundation for commerce. This explains why some countries make things that they also import since they are able to do so for less money than their trading partners.

What is comparative cost ?

Comparative costs refers to comparing, using a comparative costs approach, the costs of signing into a privatized contract to the expenses of the state maintaining to provide the services that are the subject of the contract.

Therefore,

Less commerce occurs as a result of partial specialization and rising costs than when costs are constant. The cost advantage one country has over another serves as the foundation for commerce. This explains why some countries make things that they also import since they are able to do so for less money than their trading partners.

To learn more about comparative cost from the given link:

brainly.com/question/8141905

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