1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slamgirl [31]
3 years ago
11

A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a profit margin of 4.9 percent. The total equi

ty is $511,640. What is the amount of the net income
Business
1 answer:
svp [43]3 years ago
6 0

Answer:

$44,083.72

Explanation:

Given:

Debt ratio = 57%

Asset turnover = 1.12

Profit margin = 4.9%

Total equity = $511,640

Find the total debt:

Debt = debt ratio × total equity

= 0.57 * 511640

Debt = $291,634.80

Find the total assets:

Total assets = Total debt + Total equity = $291,634.80 + $511,640

Total assets =  $803,274.80

Find total turnover:

Turnover = Total assets * Total asset turnover ratio

= $803,274.80 * 1.12

= $899,667.78

Now find the amout of net income:

Net Income = Turnover * Profit margin

Net Income = $899,667.78 * 4.9%

= $44,083.72

The amount of net income is $44,083.72

You might be interested in
The market supply of cigarettes is shown in the table below.
mr_godi [17]

The answer & explanation for this question is given in the attachment below.

4 0
3 years ago
Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.
Romashka [77]

Answer:

1. Increasing

2. A. The elasticity of private saving with respect to the after-tax real interest rate

B. The response of private saving to changes in the government budget deficit

C. The elasticity of investment with respect to the interest rate

Explanation:

1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.

A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.

2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.

The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.

The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.

Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.

7 0
3 years ago
the difference between what it costs to make and sell a product and what a customer pays for is referred to as
Bas_tet [7]

Answer:

<em>The</em><em> </em><em>difference</em><em> </em><em>between</em><em> </em><em>what</em><em> </em><em>it</em><em> </em><em> costs to make and</em><em>sell a product and what a customer pays for is referred to as</em>

3 0
3 years ago
What are the two most important cost considerations in queuing​ problems?
Tatiana [17]
B is the answer I think
3 0
2 years ago
Mary's Cookies submitted an ad to the local newspaper with a coupon stating that a dozen cookies cost $2.99. The newspaper inste
ss7ja [257]

Answer:

b. Noise

Explanation:

Although there are other factors that may act as barriers to effective communication. However the most likely factor here is noise.

It is most likely that when Mary was stating that a dozen cookies cost $2.99, the newspaper staff was affected by noise coming from people or the printing press machines and thought he had heard $29.90.

3 0
3 years ago
Other questions:
  • If your paycheck indicates that you worked 7.5 hours each day in an 8-day pay period, how many hours did you work in all? A. 54
    13·1 answer
  • Investment increases to​ $1.5 trillion, and the multiplier when the price level is constant is 8. Draw the new aggregate demand
    10·1 answer
  • Which of the following is an activity that falls into a gray area and might be acceptable Internet use in some organizations but
    9·1 answer
  • Peter Drucker championed several ideas that continue to be influential to this day, including decentralization, employees as cor
    14·1 answer
  • Dubberly Corporation's cost formula for its manufacturing overhead is $31,600 per month plus $52 per machine-hour. For the month
    7·1 answer
  • Shelby traveled to Mexico to a resort and took $100 in U.S. currency. When she exchanged it for pesos, she received A) 10.3 peso
    6·1 answer
  • What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service,
    14·1 answer
  • On October 1, year 14, Park Co. purchased 200 of the $1,000-face-value, 10% bonds of Ott, Inc., for $220,000, including accrued
    11·1 answer
  • Define the word buffer in entrepreneurship ( business ) form .
    10·1 answer
  • Advantages of price mechanism
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!