Buy new $13.97

Financial data for Stirling Inc. for last year are as follows:

Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

profit margin:

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

Assets turnover:

$\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}$

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

ROI

$\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}$

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

Residual Income:

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

8 0

3 years ago

A vendor allows a 2% discount if an invoice is paid within 10 days. a purchase was made for $5,000 on june 10 and paid on june 1

Kamila [148]

An invoice is a document given from the seller to the buyer stating the quantity of products bought, agreed prices and transactions made between the two parties. If the buyer bought the product in June 10 and decides to pay on the 19th, only 9 days have passed since the date of purchase. This is inclusive of the agreement written that 2% discount is given if paid not more than 10 days. Therefore, the check should be

($5,000)(1-.0.02) = $4900

8 0

3 years ago

Can Anybody Help? Need All 4 Questions Answered

Marat540 [252]

Answer:

1. It is ethical for her to list her job duties in great detail as she ahs still done the job in question.

2. It is unethical to embellish her job responsibilities as she includes responsibilities in her job that she has not done and has therefore lied to the job she is applying for.

3. Problems she may face is being fired for lying, made to do work that is not in her capabilities and can potentially damage the work assigned and job in general, as well as trouble by her colleagues and boss

4. She can include attributes that make her a promising individual. For example she states she can "learn on the fly" and thus can write in her resume that she is a quick learner and can adapt easily to her surroundings.

3 0

3 years ago

Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a

iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

1- financial disadvantage of accepting the special order is loss of $60,000

2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

6 0

3 years ago

. A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providin

Anit [1.1K]

Answer: $17.28

Explanation:

6 month free concession in first year drops rent to:

= 20 / 2

= $10

Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]

= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]

= (9.09 + 17.355 + 16.5289) / 2.48685

= $17.28

8 0

3 years ago