Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
The SMA balance in the account would be 7500.
<h3>What is Special Memorandum Account (SMA)?</h3>
The excess margin from a client's margin account is put into a special memorandum account (SMA), which is a dedicated investment account, improving the client's purchasing power. The SMA, which is often referred to as a "special miscellaneous account," functions effectively as a line of credit.
It's important to distinguish between separately managed accounts, often known as SMAs, and special memorandum accounts.
A short account's market value decreases by $1 for every $1 of SMA to be created. The SMA balance would be $7,500 if the market value decreases by $5,000.
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<span>Aggregate supply (as) denotes the relationship between the total quantity that firms choose to produce and sell and the price level of the output, holding the price of inputs fixed. </span>Aggregate supply is the total supply of services and goods that identifies the economy plan of a nation in a specific period of time.
Answer:
b) $500 is recognized in year 1 and $8,500 in year 2.
Explanation:
Calculation to determine When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
Calculation for amount recognized in year 1
Payment in year 1= $9,000 ÷ 18 months
Payment in year 1= $500
Therefore Based on the above calculation the amount recognized in year 1 will be $500
Calculation for the amount recognized in year 2
Payment in year 2 = $9,000 - $500
Payment in year 2= $8,500
Therefore The amount recognized in year 2 will be $8,500
Answer:
Segmentation based on product usage
Explanation:
This is the process where by a Market research is carried out to know the frequency of the customers product usage there by allowing the company to be able to align its product with the given statistics. In other to push up the product usage advertisement campaigns are made to let the customers understand new uses of the products.
