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
inn [45]
3 years ago
9

Wie Corp's sales last year were $280,000, and its year-end total assets were $355,000. The average firm in the industry has a to

tal assets turnover ratio (TATO) of 2.4. The firm's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Do not round your intermediate calculations.
Business
1 answer:
Kamila [148]3 years ago
5 0

Answer:

$238,333

Explanation:

Assets turnover is a ratio of sales to the fixed asset of a company. It shows that how effectively the company using its fixed assets to generate the revenue. It measures the efficiency of the fixed asset in making sales.

Formula

Asset Turnover = Net Sales / Avg. Fixed Assets

Asset turnover industry average = 2.4

As per given Condition

Asset Turnover of Industry = Asset Turnover of TATO

2.4 = Net Sales / Fixed Assets

As the sales is constant, so we will calculate the fixed asset value

2.4 = $280,000 / Fixed Assets

Fixed Assets = $280,000 / 2.4 = $116,667

Reduction in assets = $355,000 - $116,667 = $238,333

By $238,333  the assets will be reduced to bring the TATO to the industry average, holding sales constant.

You might be interested in
A new company manufactures tennis rackets. The fixed expenses are $78,490 and the variable expenses are $14 per racket produced.
fomenos

The solution for the problem follows:

 

Expense = variable expenses * quantity of produced + fixed expenses

= 14q + 78,490

= 14 (3500) + 78, 490

= 49000 + 78,490

= $127, 490 is the total expense for 3,500 tennis rackets

 

Get the per piece expense by dividing 127,490 to 3500

Expense per piece = 127,490 / 3500

= $36.43

 

<span> </span>

3 0
3 years ago
All of the following statements regarding accounting treatments for liabilities under U.S. GAAP and IFRS are true except:_______
mihalych1998 [28]

Answer:

A) Accounting for bonds and notes under US GAAP and IFRS is similar.

Explanation:

US GAAP and IFRS do not have the same accounting guideline for bond issue cost:

Under US GAAP, bonds payable is recorded at face value while premiums or discounts are recorded separately. While under IFRS, bonds payable is recorded using the carrying value, and amortization or premiums or discounts is done by using the effective-interest method.

5 0
3 years ago
Before making a turn at an intersection, you should signal at least __________ before your intended turn.
cupoosta [38]

Answer:

100

Explanation:

because it gives enough time for notice but not too much to where people think you could be turning at a earlier intersection

5 0
3 years ago
​you consider the situation, roll up your sleeves, and get to work. what should be the first step you take in obtaining the info
Alina [70]
The first step would be: define the problem that needs to be solved.
Before we started colelcting information, we need to distinguish which type of information would be considered as 'relevant' and could aid us in achieving our goals. In climbing the Esports industry, this could involve most efficient way of training, nutrition necessary to icnrease gaming concentration, the strength of competitors, etc.
5 0
3 years ago
John borrows $10,000 for 10 years at an effective interest rate of 10%. He can repay the loan using the amortization method with
Ierofanga [76]

Answer:

The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19

Explanation:

Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.

FutureValue=\frac{A((1+r)^{n} -1)}{r}

Where:

A = equal annual savings into the sinking fund (that is $627.45)

r = effective rate of the sinking fund (14%)

n = 10 years

Everything should look like this.

FutureValue=\frac{627.45((1+0.14)^{10} -1)}{0.14}

Future Value=12,133.19

Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.

Best of luck.

8 0
3 years ago
Other questions:
  • Martin is a manager at Antrix Computers. A team of 15 people report to him. Elliot is Martin's least preferred coworker because
    5·2 answers
  • New entrants to an industry are more likely when:a. differentiation among existing competitors is highb. access to distribution
    12·1 answer
  • A company is going to issue a $1,000 par value bond that pays a 5% annual coupon. The company expects investors to pay $684.5 fo
    14·1 answer
  • Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, vari
    11·1 answer
  • the vikings company, based in minnesota, is committed to training new employees. assuming the company uses the incremental learn
    14·1 answer
  • You are an investment manager and one of your clients is a famous soccer player. She is promised to be paid $5million three year
    12·1 answer
  • SEE
    10·2 answers
  • A company can have many different levels of measuring KPIs. What types of KPIs can be measured besides company-level, campaign-l
    6·1 answer
  • we are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. assume that depreciation is s
    5·1 answer
  • in which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are l
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!