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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

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Determine which of the items below would show up on a monthly bank statement. (Check all that apply.)
djverab [1.8K]

Answer:

Deposits and other credits increasing the account during the period.

End-of-period balance in the account.

Beginning-of-period balance in the account.

Checks and other debits decreasing the account during the period.

Explanation:

A bank's monthly statement may be described as document showing transaction details which occurred on a bank account during a specified period of time. The monthly statement will include balance or amount in the account at the beginning of the period. The record of deposits and inflow of funds or credits in the account. The monthly statement will also include outflow, which are withdrawals and debits occurring on the account at the specified period of time. Also, the statement will include the balance at the end of the specified period of time.

7 0
3 years ago
Bluestone Company had three intangible assets at the end of the current year:
ra1l [238]

Answer:

Bluestone Company

a. The acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. The amortization of each intangible asset for the current year ended December 31:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

c. Balance Sheet as of December 31, of the current year:

Intangible Asset:

a. Patent                     $3,600

b. Trademark               8,000

c. Licensing Rights   90,000

Total Intangible      $101,600

less amortization       15,300

Net book value      $86,300

Income Statement for the year ended December 31 of the current year.

Amortization Expenses:

a. Patent                      $300

c. Licensing Rights $15,000

Explanation:

a) Data and Analysis:

a. Patent $3,600 Cash $3,600

b. Trademark $8,000 Cash $8,000

c. Licensing Rights $90,000 Cash $90,000

a. Acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. Amortization of each intangible asset:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

8 0
2 years ago
A new truck is purchased on January 1, 20X6. The truck cost $10,000, has a 5-year life, and a $2,000 residual value. Given a Dec
Elena-2011 [213]

Answer:

20X9 depreciation expense is $160

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20%.

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

In 20X6, depreciation expense = 40% x $10,000 = $4,000

At the beginning of the year 20X7, the truck cost's book value is $10,000-$4,000 = $6,000

In 20X7, depreciation expense = 40% x $6,000 = $2,400

In 20X8, depreciation expense = 40% x ($10,000 - $4,000 - $2,400) = $1,440

Accumulated depreciation at December 31 20X8 = $4,000 + $2,400 + $1,440 = $7,840

Book value at December 31 20X8 = $10,000 - $4,000 - $2,400 - $1,440 = $2,160

In 20X9, depreciation expense = $10,000 - $2,000 - $7,840 = $160

The 20X9 depreciation expense was $160 which is less than the actual $864 (40% of $2,160). It was done to keep the residual value as estimated ($2,000)

4 0
3 years ago
Anyone know the answer to this?
Ipatiy [6.2K]

Answer:

rework hope this helps :)

Explanation:

5 0
3 years ago
Patagonia donates at least 1% of profits to support environmental causes. There products are also produced under safe, fair, leg
Alchen [17]

Answer: corporate social responsibility practice

Explanation:

Corporate social responsibility occurs when organizations contribute to societal goals by supporting practices that are ethically oriented and have a positive effect on the economy.

Since Patagonia donates at least 1% of profits to support environmental causes and is contributing positively to the economy, then Patagonia is practicing corporate social responsibility practices.

6 0
3 years ago
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