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3 years ago

The ratio of return on investment (ROI) measures the profitability of a business unit by comparing to .

Business

1 answer:

omeli [17]3 years ago

8 0

Answer:

D) net profit before taxes; total assets invested

Explanation:

The formula to compute the return on investment is shown below:

Return on investment = Operating Income ÷ Total assets invested

It shows a relationship between the pre taxes operating income and the total assets investment

It checks that investment which is invested yields high returns or not. If it generates high returns that it will gain to the company else the company will suffered the losses.

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Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, h

allochka39001 [22]

Answer:

Explanation:

CR Semi annually 7.2/2 3.6%

Semi Annual Cash-flow 1000*3.6% 36

Rate of Return 15.5 7.75%

Present value of bond at 7.75% semmi annually return

Due to series of c/F apply annuity 1-(1+0.0775)^-20

Due to one single c/F apply compound 1/(1+0.0775)^20

No of Cash flows Discount facto5 @ 7.75% annuity Present Value

Cashflows P=R*(1-(1+I )^-n) / i

20 36 9.966011947 358.7764301

1 1000 0.222651068 222.6510682

Present values 581.4274982

CR Semi annually 9.2/2 4.6%

Semi Annual Cash-flow 1000*4.6% 46

Rate of Return 15.5 7.75%

Present value of bond at 7.75% semmi annually return

No of Cash flows Discount facto5 @ 7.75% annuity Present Value

Cashflows P=R*(1-(1+I )^-n) / i

20 46 9.966011947 458.4365495

1 1000 0.222651068 222.6510682

Present Value 681.0876177

There is no transaction cost and CR = IRR thats why the present value of the bond will be equal to face value of bond

CR = 15.5%

IRR = 15.5%

Present value of bond at 7.75% semmi annually return

No of Cash flows Discount facto5 @ 7.75% annuity Present Value

Cashflows P=R*(1-(1+I )^-n) / i

20 77.5 9.939402948 770.3037285

1 1000 0.22472657 224.7265701

995.0302985

Difference is due to decimals

8 0

3 years ago

Mutual agency means:_______.

valkas [14]

Answer:

.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Explanation:

.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Mutual agency means that rights of all partners and authority committed or bind the partnership in any contract representing the business operations.

Any partner can act on behalf of the others and acts of each of the partners is binding for all the partners.

Choices A, B ,D are all characteristics of partnership but not mutual agency.

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4 years ago

Sharp Screen Films, Inc., is developing its annual financial statements at December 31, the current year. The statements are com

elena-s [515]

Answer:

Detailed step-wise solution in tabular form is given below:

4 0

4 years ago

Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers

Slav-nsk [51]

Sales Returned and Allowances $50

Allowance for Sales Return and Allowances $50

Lavender expects 5 jars at $10 each ($50 total) to be returned.

Explanation:

Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to return the product for any reason. Based on past sales, Lavender expects Bed, Bath, and Relax to return 5 jars

<u>Using the above stated information we get the given data :-</u>

Sales Returned and Allowances $50

Allowance for Sales Return and Allowances $50

Lavender expects 5 jars at $10 each ($50 total) to be returned.

<u>The adjusting journal entry on December 31 reflects</u>

The right of return by debiting Sales Returns and Allowances (a contra-revenue account) and
Crediting Allowance for Sales Returns and Allowances (a contra-asset account to Accounts Receivable).

5 0

3 years ago

Gasoline prices increase by 50 percent and other things remain the same. as a result, there is no change in the quantity of gaso

lianna [129]

As a result, there is a decrease in the quantity of gasoline demanded. Demand is the amount of a commodity or a service that consumers are willing and able to buy at a given market price while supply is the quantity of goods produced by the producers to the market. Increase in prices of a commodity leads to a decrease in the quantity demanded while a decrease in price while keeping other factors constant results to an increase in demand.

7 0

3 years ago

Read 2 more answers

The ratio of return on investment (ROI) measures the profitability of a business unit by comparing ________ to ________.

The ratio of return on investment (ROI) measures the profitability of a business unit by comparing to .