1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gnoma [55]
3 years ago
9

Shown below are selected data from the financial statements of the Supreme Company. (Dollar amounts are in millions, except for

the per share data).
Income statement data:

$'000
Net sales $1,230
Cost of goods sold $520
Operating expenses $440
Net income $390
Balance sheet data:

$'000
Average total equity $2,400
Average total assets $4,000
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share.

At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $88 per share.

Required:

Compute the following:

a). Gross profit rate

b). Supreme's operating income (in millions)

c). Return on assets

d). Return on equity

e). Price-earning ratio
Business
1 answer:
Yuki888 [10]3 years ago
3 0

Answer:

a. Gross profit rate =   Gross profit / sales

                              = <u> $710,000 * 100</u>

                                       $1,230,000

                              =  57.72%

b. <u>Supreme Operating Income </u>

Gross Profit                           $710,000

Operating expenses             <u>(440,000)</u>

Operating Profit                    <u> 270,000</u>

<u />

c. Return on Asset  =   Return/  Average Asset

                                =   <u>$390,000 * 100 </u>

                                       $4,000,000

                             =   9.75%

d. Return on equity  =   Return / Average equity

                                 =   <u>$390,000 * 100 </u>

                                        $2,400,000

                               =      16.25%

e. Price-earnings ratio  =  Market price per share / earnings per share

                                       =   $88/ $4  

                                       =  22

Explanation:

Computation of Gross profit

                                                $'000

Net Sales                                1,230

Cost of goods sold                 <u>(520)</u>

Gross Profit                              710  

You might be interested in
The labor force includes rev: 05_30_2018 Multiple Choice employed workers but excludes persons who are officially unemployed. pe
butalik [34]

Answer:

employed workers and persons who are officially unemployed

Explanation:

The labor force is the force that involves the labors who are employed and the unemployed i.e. officially

In an equation, it can be

Labor force = Employed workers + unemployed workers

It is a combination of both the employed and the unemployed workers

hence, the correct option is third

Therefore all the other options are wrong as they do not meet the criteria of the labor force

8 0
3 years ago
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,
kifflom [539]

Answer:

$71,000

Explanation:

The computation of operating income is shown below:-

Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)

= (43,000 × $3.80) + ($68,000 × (100% - 30%))

= (43,000 × $3.80) + ($68,000 × 70%)

= $163,400 + $47,600

= $211,000

Loss in Income if part is bought = Total costs if company bought - Total costs originally

= $211,000 - $140,000

= $71,000

Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.

8 0
3 years ago
The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There
frutty [35]

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

<u>Date           Particulars                                         Debit ($)           Credit ($)   </u>

Mar. 31       Work in process                                  15,625

                  Direct labor time variance                      625

                  Direct labor rate variance                                                 650

                  Wage payable                                                               15,600

<u><em>                   (To record the direct labor in the Assembly Department.)       </em></u>

4 0
3 years ago
A document format is : ap3x
AlladinOne [14]

Answer:is D

Explanation:

The shape,size,design,and arrangement of its physical elements

5 0
2 years ago
Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? A
skelet666 [1.2K]
<span>Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? Positive incentive. A positive incentive is a value that is given during the performance of a regular behavior. As long as Tina does what she is supposed to her parent's will continue to pay her car insurance. There is a reward for her doing what she </span>should be doing on her own which is motivating her to continue to do it. 
4 0
3 years ago
Read 2 more answers
Other questions:
  • How is going public a way to secure capital without going into debt? Name a company that has held an IPO.
    7·1 answer
  • Present and future value tables of $1 at 3% are presented below:
    14·1 answer
  • Frank has saved $40.00 for concert tickets, but decides to buy a new pair of jeans instead. In this scenario, what do the concer
    15·1 answer
  • The Bigdrill company drills for oil, which it sells for $200 million to the Bigoil company to be made into gas. The Bigoil compa
    12·1 answer
  • Explain why it is true that for a firm in a perfectly competitive​ market, the​ profit-maximizing condition MR​ = MC is equivale
    7·1 answer
  • Calgary Doughnuts had sales of $100 million in 2007. Its cost of sales were $70 million. If sales are expected to grow at 20% in
    6·1 answer
  • ​You're traveling in Japan and are thinking about buying a new kimono.​ You've decided​ you'd be willing to pay​ $175 for a new​
    9·2 answers
  • How many people do online school here...? Because I see a lot of the same questions here...?
    13·2 answers
  • When the market breaks through the moving average line from below, a technical analyst would probably suggest that it is a good
    9·1 answer
  • One of the disadvatages of using historical returns to estimates the market risk premium is that the past may not be good guide
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!