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My name is Ann [436]
3 years ago
6

Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity du

ring the year = $123,650. Return on equity (ROE) for the year is:A. 29.6%
B. 11.3%
C. 22.7%
D. 127.6%
E. There is not enough information to answer the question.
Business
1 answer:
Andre45 [30]3 years ago
4 0

Answer:

A. 29.6%

Explanation:

Return on Equity is the times of profit a owner can earn on the equity investment in the business. Higher ratio shows the business is more profitable.

As per given data

Net Income =  $36,610

Average Equity = $123650

Return on Equity ( ROE ) = Net Income / Equity Investment

Return on Equity ( ROE ) = $36,610 / $123650

Return on Equity ( ROE ) = 0.296

Return on Equity ( ROE ) = 29.6%

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When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10. you compute the price of jeans relative
WARRIOR [948]
So, the dollar price of the jeans is the nominal variable, and the relative price is the real variable.   The relative price of the jeans have been adjusted to inflation. The dollar price hasn't been adjusted for inflation, hence why it is the nominal variable (not adjusted for inflation).
5 0
3 years ago
If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 1,000 units, and the beginn
never [62]

Answer:

25,500 units

Explanation:

Sales units = Opening stock + Production - Closing stock

<em>So, we input the figure with aid of the above formulae</em>

25,000 units = 500 units + Production units - 1,000 units

Production units = 25,000 units - 500 units + 1,000 units

Production units = 25,500 units.

So, the number of units set forth in the production budget, representing total production for the current period is 25,500 units.

7 0
3 years ago
On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truc
Norma-Jean [14]

Answer:

option (D) loss, $3,000

Explanation:

Given:

price of the truck = $48,000

estimated residual value = $8,000

Exchange price of the truck = $60,000

Trade allowance = $35,000

Since, straight line depreciation is given, thus,

Total depreciation = \frac{\textup{48,000−8,000}}{\textup{8}}

or

Total depreciation = $5,000 per year

Therefore,

the book value after two years

= Price of truck - total depreciation in two years

or

= $48,000 − ($5,000 × 2 years)

= $38,000

Now,

a trade allowance received ( i.e $35,000 ) is less than the book value

therefore a loss is recorded

The amount of loss = (Book value - trade allowance received)

or

The amount of loss =  $38,000 - $35,000 = $3,000

Hence, correct answer is option (D) loss, $3,000

5 0
3 years ago
In a market economy, supply and demand are important because they a. play a critical role in the allocation of the economy’s sca
AleksandrR [38]

Answer:

The answer is: D) All of the above are correct.

Explanation:

Theoretically in a market economy, the supply and demand of goods should play a critical role in the allocation of resources. One basic rule in economy is that resources are scarce, and the demand and supply helps us obtain the maximum benefit from our scarce resources.

The supply and demand should tell us how much of a good or service should be produced to reach an equilibrium point were both suppliers and consumers are satisfied.

A true market economy should not be affected by external events and policies but in the real world governments exist and markets are regulated, some more than others. The supply and demand curve should help us predict how those external events will affect the economy.

4 0
3 years ago
Amanda owns a home with a $400,000 replacement value. This January, a snowstorm causes $75,000 in damages to the home. Amanda ha
IrinaK [193]

Answer:

Insurer will pay to Amanda $69312.50

Explanation:

As we know that Amanda home replacement value which means the (Property value) is $400,000 and Amanda carries a coverage of amount $300,000 which is her policy limit. Her policy has 80% of coinsurance and snow storm causes a damage of amount $75,000. She has the $1,000 deductible in her policy.

80% of the 400,000 = 320,000

Amanda should have $320,000 but carries the insurance coverage $300,000

So she will get 300,000/320,000= 0.9375

In this scenario as the damage amount is $75,000 she will get $75,000 x 0.9375 which is equal to $70,312.50

Since the deductible amount of her policy is $ 1000 Which will therefore be deducted

Hence   $70312.50 - $1000 = $69312.50

Amanda will get $69312.50

7 0
3 years ago
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