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zepelin [54]
4 years ago
9

Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,00

0; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:
Business
1 answer:
sveticcg [70]4 years ago
5 0

Answer:

$193,000

Explanation:

                              Carter Company

Sales                                                         4,525,000

Cost of goods sold                                  <u>-2,550,000</u>

                                                                1,975,000

Operating expenses                                <u>-1,372,000</u>

Net Income                                               603,000

Average invested assets     4,100,000

Target income 10%                410,000       <u>410,000</u>

Residual income                                       <u>$193,000</u>

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4 0
3 years ago
On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it declared a 2-for-1 stock split.
Naily [24]

Answer:

1. After the split, how many shares of common stock are outstanding and what is their par value per share?

40,000 stocks outstanding x 2 = 80,000 stocks outstanding after the stock split

par value of each stock = $2 / 2 = $1

Aren't both questions the same?

2. After the split, the number of shares outstanding is <u>80,000</u> and the par value per share is <u>$1</u>.

Explanation:

When a stock split happens, the total number of outstanding stock is just multiplied by the stock split factor, in this case it was 2, but other times it might be 4 or 7 (like Apple stock). You just multiply total outstanding stock by the split number. On the other hand, par value is calculated by dividing the current par value by the split number.

5 0
3 years ago
If there is a decrease in the short-run aggregate supply curve and no changes in monetary and fiscal policies are implemented, t
Korvikt [17]

Answer:

D. Return to the original output and price level.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented. Fiscal policy refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as aggregate demand (AD), aggregate supply (AS), inflation, and employment within a country.

6 0
3 years ago
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Inessa [10]
<h2>The given statement is false. </h2>

Explanation:

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It is found from a survey that the road accidents are more when the mobile usage of the driver is more. Many drivers though they know about the consequences, they still use mobile phones while driving.

6 0
3 years ago
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? revenue focus envir
dsp73

Answer: revenue focus

Explanation:

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A traditional department store will shift its focus to a location whereby it can meet the needs of the people daily and generate as much revenue as possible.

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