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Ilya [14]
3 years ago
14

The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $14,000 Current assets $3

0,188 Debt $29,753 Costs 8,400 Fixed assets 21,125 Equity 21,560 Taxable income $5,600 Total $51,313 Total $51,313 Taxes (35%) 1,960 Net income $3,640 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 16 percent dividend payout ratio. No external equity financing is possible.Required:What is the sustainable growth rate?
Business
1 answer:
Sav [38]3 years ago
8 0

Answer:

The sustainable growth rate is 16.52%

Explanation:

To compute the substantial growth rate, first, we have to calculate the retention ratio. The formula to compute the retention ratio is shown below:

= 1 – payout ratio

= 1 – 0.16

=0.84 or 84%

Now, we use the formula of substantial growth rate which is shown below:

= (Return on equity × retention ratio) ÷ { 1 -  (Return on equity × retention ratio)}

where,

Return on equity = (Net income ÷ total equity) × 100

                            = ($3,640 ÷ $21,560) × 100

                            = 16.88%

= (16.88% × 84%) ÷ ( 1 -  16.88% × 84%)

= 0.141792 ÷ (1 -  0.141792 )

= 0.141792  ÷ 0.858208

= 0.1652 or 16.52%

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A phone company offers two monthly charge plans. In Plan A, there is no monthly fee, but the customer pays cents per minute of u
Andreas93 [3]

Answer:

For more than 180 minutes of phone use.

Explanation:

Let m represent number of minutes of phone use in a month.

We have been given that in Plan A, there is no monthly fee, but the customer pays $0.06 per minute of use.

The cost of using m minutes in plan A would be 0.06m.

We are also told that in Plan B, the customer pays a monthly fee of $4.80 and then an additional $0.03 per minute of use.

The cost of using m minutes in plan B would be 0.03m+4.80.

To find the amounts of monthly phone when Plan A will cost more than Plan B, we will set cost of plane A greater than cost of plan B as:

0.06m>0.03m+4.80

Let us solve for m.

0.06m-0.03m>0.03m-0.03m+4.80

0.03m>4.80

\frac{0.03m}{0.03}>\frac{4.80}{0.03}

m>180

Therefore, Plan A will cost more than Plan B for more than 180 minutes of phone use.

4 0
3 years ago
The net income reported on the income statement is $58,000. However, adjusting entries have not been made at the end of the peri
nlexa [21]

Answer:

The corrected Net income = $54,500                      

Explanation:

Net income is defined as the total profits earned by an individual from a business venture. It is equal to the difference between the gross income and the expenses involved including cost of supplies and accrued salaries.

Given: net income = $58,000

Entries not made include supplies expense = $2,200 and accrued salaries = $1,300

Therefore, the corrected net income = net income - expenses = $58,000 - ($2,200 + $1,300) = $54,500    

8 0
3 years ago
Macroeconomists are like scientists because they both:
Masteriza [31]

Answer: 1) collect data, develop hypotheses, and analyze the results.

Explanation:

Scientist are the professional who work in physical science or natural scientist field to gather information ,creates hypothesis for testing or experimentation to know about the actual outcome.

Macroeconomic is the field where overall economy is studied and analyzed to generate studied supposition .From created theory, evaluation of phenomena is done.

Other options are incorrect because unlimited usage of controlled experiment, relying on analyze data nd designing data are not the measure taken by scientist of macroeconomic field .Thus, the correct option is option (1).

8 0
3 years ago
The many successful movies produced by Disney are evidenced not only in the movies themselves, but in the various merchandise th
kiruha [24]

Answer:

related diversification

Explanation:

Since disney has generated the various merchandise that is connected to each other it could be range from clothing to electronics to household times

Here it would represent the related diversification as the products are diversified either introduce a new product or change in the old products

So this growth strategy would be considered in the given case

8 0
2 years ago
For accounting purposes, the business entity should be considered separate from its owners if the entity is:________
CaHeK987 [17]

For accounting purposes, the business entity should be considered separate from its owners if the entity could be a proprietorship, corporation or partnership.

<h3>What is a business entity?</h3>

It refers to the organization created by an individual or individuals to conduct business, engage in a trade or partake in similar activities. It ia also an organization founded by one or more natural persons to facilitate specific business activities or to allow its owners.

There types of business entities includes the sole proprietorship, partnership, LLC, corporation, etc

Hence, the business entity should be considered separate from its owners if the entity could be a proprietorship, corporation or partnership.

Read more about business entity

brainly.com/question/1167298

#SPJ1

4 0
1 year ago
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