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eimsori [14]
3 years ago
14

Requirement 1. Compute the profit margin ratio for Achieve​'s Companies for 2018. Begin by selecting the formula to calculate Ac

hieve​'s ​Companies' profit margin ratio. Then enter the amounts and calculate the profit margin ratio for 2018.
Business
1 answer:
tamaranim1 [39]3 years ago
3 0

Given Information:

                         Achieve​'s Companies Income statement

                           Years ended May 31 , 2018 and 2017    

                                                                         2018                2017

Net sales revenue                                          51,200            50,700

Costs of goods sold                                       20,800           28,600

Interest expense                                              400                  280

All other expenses                                          6,200              7800

Net income                                                      23,800            14,020

Explanation:

(1) Profit Margin Ratio for 2018

Profit Margin Ratio for 2018 = [Net Income / Net Sales Revenue] x 100

= [$23,800 / $51,200] x 100

= 46.5%

(2) Rate of Return on total assets for 2018

Rate of Return on total assets for 2018 = [Net Income / Average Total Assets] x 100

= [$23,800 / {($86,700 + $57,700)/2}] x 100

= [$23,800 / $72,200] x 100

= 33.0%

(3) Asset Turnover Ratio for 2018

Asset Turnover Ratio for 2018 = Net Sales Revenue / Average Total Assets

= $51,200 / $72,200

= 0.71 Times

(4) Rate of return for Common Stockholders Equity for 2018

Rate of return for Common Stockholders Equity for 2018 = [Net Income / Average Equity] x 100

= [$23,800 / {($45,200 + $32,900)/2}] x 100

= [$23,800 / $39,050] x 100

= 60.9%

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Answer:

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   ($72,000 + $1,400)

          Accounts payable                          $73,400

   (Being raw materials purchase on credit)

2. Journal Entry                        Debit        Credit

  Work in process                      $64,300

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                   <u>Raw Material Inventory Account</u>

Beginning balance    $36,000  |  Work in process $64,300

Purchase                    $73,400  |                              <u>            </u>

                                                   | Ending balance    <u>$45,100</u>

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3 0
3 years ago
"Auditors should be familiar with the terminology employed in IT processing. The following statements contain some of the termin
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Answer:

Explanation:

Step 1:

the auditor is required to provide reasonable assurance for the financial statement audited.To provide such reasonable assurance,appropriate evidence must be obtained to confirm that no material misstatement material is present in the financial statement

Step 2:

For each statement select true or false in the following manner

a. A recent improvement in computer hardware is the ability to automatically produce error listings. Previously, this was possible only when provisions for such a report were included in the program.

FALSE

b. The control of input and output to and from the information systems department should be performed by an independent data control group.

TRUE

c. An internal-audit computer program that continuously monitors IT processing is a feasible approach for improving internal control in OLRT systems.

TRUE

d. An internal label is one of the controls built into magnetic tape drive hardware by the hardware manufacturers.

FALSE

e. A limit test in a computer program is comparable to a decision that an individual makes in a manual system to judge a transaction's reasonableness.

TRUE

f. A principal advantage of using magnetic tape files is that data need not be recorded sequentially.

FALSE

g. A major advantage of disk files is the ability to gain random access to data on the disk.

TRUE

h. The term grandfather-father-son refers to a method of protecting computer records rather than to generations in the evolution of computer hardware.

TRUE

i. When they are not in use, tape and disk files should be stored apart from the computer room under the control of a librarian.

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3 years ago
In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Car
lana [24]

The tax laibility as calculated is $1036.

<u>Explanation:</u>

a.)  Carson earnings  $14000

Less: the Standard deduction  $12000

Taxable income  $2000  

Tax liability  $200

b.)  Carson earnings  $14000

Qualified dividend income  $5000

Gross income  $19000

less: Standard deduction  $12000

Taxable income  $7000

Taxable income taxed at carson rate  $2000

($7000 minus $5000)  

           Ordinary Tax  $200

Kiddie Tax is calculated as follows:  

Gross unearned income  

unearned income                             $5000

Kiddie tax up to 2600                          $260

Kiddie tax for over and above 2600  $576

                                                                     $836  

Total tax liability ($200 plus $836)           $1036

 

7 0
3 years ago
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping costs totaled $30,000. Foundat
Yakvenalex [24]

Answer:

d. $489,500

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The capitalized cost will include all the costs incurred by Holiday laboratories to readily make the asset for use.

Therefore,

Capitalized cost = High speed industrial centrifuge + Shipping cost + Foundation cost + Equipment cost + Labor and testing cost + Material cost

= $440,000 + $30,000 + $8,600 + $3,000 + $5,300 + $2,600

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3 years ago
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A joint venture is a child company of two parent companies.

It’s maintained by sharing resources and equity with a binding agreement. Whether it’s formed for a specific purpose or an ongoing strategy, a joint venture has a clear objective, and profits are split between the two companies.

<h3>What is Non – Equity Strategic Alliance?</h3>

In a non-equity strategic alliance, organizations create an agreement to share resources without creating a separate entity or sharing equity.

Non-equity alliances are often more loose and informal than a partnership involving equity. These make up the vast majority of business alliances.

Learn more about strategic alliances here:

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3 0
2 years ago
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