All categories

3 years ago

Which financial statement is considered a link between the income statement and balance sheet?

1 answer:

6 0

Statement of owners equity is considered a link between the income statement and balance sheet. I think thats the answer your looking for

You might be interested in

Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca

Firdavs [7]

Answer:

13.75%

Explanation:

Calculation for what will be the company's return on equity

First step

Asset Turnover Ratio= Net Sales / Total Assets ------(1)

Given Asset Turnover Ratio =2.7

=> 2.7 = 4,000,000/ Total Assets (from equation 1)

=>Total Assets = 1,481,481 ------(2)

Second step

ROE = Net Income / Equity

Net Income = (EBIT - Interest Charges) *(1-tax rate)

Net Income = (356,000 -168,000) *(1-35%)

Net Income = $122,200 --------(3)

Equity = Total Assets *(1-debt ratio)

Equity = 1,481,481*(1-0.4) = $888,889 --------(4)

From equation 3 and 4

ROE = Net Income / Equity

ROE= 122,200/888,889

ROE =0.1375*100

ROE=13.75%

Therefore ROE will be 13.75%

5 0

2 years ago

Dafna1 [17]

ANSWER: The correct answer is (d)- To serve as an introduction.

Explanation: Executive summary is a brief overview or introduction of the entire plan. It highlights the main points of the marketing plan to the company or business. Mostly people in the authority are occupied to deeply go through the plan so executive summary provides a basic understanding or overview or idea. It provides the summary of objectives and a proposed framework for growth potential.

8 0

3 years ago

Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms

-Dominant- [34]

Answer:

Regional Production

Explanation:

Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

7 0

2 years ago

As a result of a thorough physical inventory, Horace Company determined that it had inventory worth $320,000 at December 31, 201

zimovet [89]

Answer:

The correct answer is option b) $367,000

Explanation:

Here for calculating the correct amount of inventory that Horace should report can be calculated through, by adding the inventory worth $320,000 at 31 December, 2015 with consignment given to Herschel worth $47,000, SO

Correct amount of inventory =

Amount of inventory on 31 December

Consignment given to Herschel

= $320,000 + $47,000

= $367,000

Here we are taking Herschel consignment in to account and that too at the historical purchase cost because Horace company has give the Herschel to sell the goods on his behalf but the transfer of ownership has not taken place here , the right to ownership here remains with the Horace and the amount at which they should be recorded is at purchase cost not selling cost.

We will also not include goods worth $ 22,000 in to the calculation because the Horace company has not received the goods physically yet, we will include those goods in to inventory on January 3 not before that.

3 0

3 years ago

Tyler is a finance manager at an automobile manufacturing company. He collects internship reports from summer interns at the com

tamaranim1 [39]

Answer:

Disseminator role.

Explanation:

Disseminators play the important part of communicating important and useful information to colleagues and the team. Generally managers are responsible for transmitting information regarding management expectations to employees with a view of achieving organisational goals.

Tyler as a finance manager at an automobile manufacturing company. Collects information from summer interns regarding improvements in finance strategy. He communicates this information to the Chief Financial Officer. This is a dissemination function by Tyler.

6 0

3 years ago

Read 2 more answers