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kaheart [24]
4 years ago
13

A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing togethe

r information in order to release a financial report. You have found the return on equity to be 16.3 percent. Sales were $1,785,000, the total debt ratio was .33, and total debt was $658,000. What is the return on assets (ROA)
Business
1 answer:
Tju [1.3M]4 years ago
8 0

Answer:

The return on assets (ROA) of Excandesco Company is 10.921%

Explanation:

Return on assets (ROA) helps an investor see how much after-tax profit a company gained for each dollar in assets, is calculated by formula:

ROA = Net Income/ Total Assets

The total debt ratio of Excandesco was .33:

Total debt ratio = Total Debts/ Total Assets = 0.33

Total debts = 0.33 x Total Assets

From the accounting equation: Total Assets = Total debts + Total Equity

Total Equity = 0.67 x Total Assets

Excandesco Company had return on equity (ROE) of 16.3 percent.

ROE = Net income/ Equity

Net income = ROE x Equity = 16.3% x 0.67 x Total Assets = 0.10921 x Total Assets.

ROA = Net Income/  Average Total Assets = (0.10921 x Total Assets)/Total Assets = 0.10921 = 10.921%

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American General Company experienced the following accounting events during 2014:
12345 [234]

Answer:

1.  Operating Activities (OA)

2. Financing Activities (FA)

3. Financing Activities (FA)

4. Investing Activities (IA)

5. Operating Activities (OA)

6.  Operating Activities (OA)

7. Investing Activities (IA)

8. Financing Activities (FA)

9. Not applicable (NA)

10. Financing Activities (FA)

Explanation:

Statement of cash flows is one of the three major financial statements. The statement analyses the cash generated and cash expended by an entity in a given period. The statement collates the analysis under three categories

1. Operating Activities

2.Investing Activities

3.Financing Activities

Operating activities comprise of cash generated and expended by the entity on its normal business operation during the period. Examples of this are cash received from customers, cash paid to suppliers, rent paid to landlord, cash expenses paid etc.

Investing activities consist of cash activities involving acquisition and disposal of assets and investment. Examples of such are cash receipt from sales of equipment, cash spent on purchase of investment securities.

Financing activities are cash activities involving the entity and provider of capital, equity owner and debt holder. Example of such activities are cash generated from issuance of bond, cash dividend paid to equity owner.

4 0
4 years ago
Because it is Select one: a. neither excludable nor rival in consumption, a tornado siren is a public good. b. excludable but no
olga2289 [7]

Answer:

Because it is (a.) neither excludable nor rival in consumption, a tornado siren is a public good.

Explanation:

A tornado siren is an outdoor warning system that alert the public about an impending tornado danger, and thus expects the people to be prepared for an emergency, tune in to news for further directives or immediately seek safer shelter from impending tornado.  

It does not exclude anyone for any reason and neither does it creates rivalry in consumption for the public usage. It is a straight forward alert that optimizes safety for all and sundry.

6 0
3 years ago
Read 2 more answers
Suppose that a technological advance among Japanese television manufacturers causes the world price of televisions to fall by $8
cricket20 [7]

Answer: Because the United States imports televisions, <u>P2 (GREATER)</u> represents the world price before the technological advance, and<u> P1 (MINOR)</u> represents the world price after the technological advance.

Explanation: The United States has no comparative advantage over the other countries in the production of televisions, therefore it IMPORTS them.  Therefore, the price of televisions in the United States under normal conditions is higher than the world price, and as the world price falls as a result of Japan's technological advance, the price in the United States also decreases.

6 0
4 years ago
Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter i
stealth61 [152]

Answer:

$57.50

Explanation:

The computation is shown below:

Before computing the units, first we have to compute the overhead rate per hour which is shown below:

= $920,000 ÷32,000 units

= $28.75

Now the unit for assigned overhead is

= Overhead rate per hour × direct labor hours ÷ number of units

= $28.75 × 12,000 ÷ 6,000

= $28.75 × 2

= $57.50

We simply do the above calculations

3 0
3 years ago
Greg, a control room engineer at tri-state power, inc.'s nuclear power plant regularly practices handling emergency situations i
solmaris [256]

<span>TriState uses the job stimulation in which are being used to train their engineers. A job stimulation are used in means of having to test its employees in which will determine whether the employees that are being tested are capable of performing their assigned task.</span>

5 0
4 years ago
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