Answer:
Total assets turnover = 5.5
Equity multiplier = 1.55
Explanation:
The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):
The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):
The company's total assets turnover is 5.5
The firm's equity multiplier is 1.55
Answer:
Net income = $320
Net cash flow from Operating activity = $145
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $485
To Service revenue A/c $485
(Being sales service is provided for cash)
2. Salary expense A/c Dr $165
Outstanding salary expense A/c Dr $175
To Salary and wages payable A/c $340
(Being salary expense is recorded)
Salary and wages payable A/c $340
To Cash $340
(Being salary and wages are paid)
The net cash flow from operating activities would be
= Service revenue - salaries and wages payable
= $485 - $340
= $145
The net income would be
= Sales - salary expense
= $485 - $165
= $320
Cash flow from Operating activities under the indirect method
Net income $320
Less: Decrease in salary payable - $175
Net Cash flow from Operating activities $145
The answer is 1 level apart because 4-5=1 and 5 is 1 more up than 4
Answer:
Effect on income= $2,000 decrease
Explanation:
Giving the following information:
Selling price= $10 per unit.
Variable costs are $4 per unit
A move to a larger facility would increase rent expense by $8,000, and allow the company to meet its demand for an additional 1,000 units.
We need to calculate the effect in the income of moving to a larger facility.
Effect on income= total contribution margin increase - increase in fixed costs
Effect on income= 1,000*(10 - 4) - 8,000
Effect on income= $2,000 decrease
Amount will be recognized as net accounts receivable on the balance sheet as of November 30-- $2730
Explanation:
First of all, the order received from Tinley High School has not been delivered by the end of November ,hence the value of the order is irrelevant for the purpose of calculating net accounts receivable at the end of November.
However, out of the goods of $3080 sold to Palos Middle School,$350 worth has been returned as defective,leaving a balance of $2730 ($3080-$350).
For Palos to be entitled to the discount of 2% they should have made payment by 24th November,which never happened,as a result the accounts receivable stay at $2730.
What Is Net Receivables?
Net receivables are the total money owed to a company by its customers minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage, and a higher percentage indicates a business has a greater ability to collect from its customers.
How do you calculate net accounts receivable?
You calculate net receivables by subtracting allowance for doubtful accounts from accounts receivable (A/R) on the balance sheet. The formula is A/R – allowance = net receivables.
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