<span>Divide $200 by 80 to get $2.50 price per zap. At 3%, Jermaine's $200 would grow to $206 ($200 x 1.03) = $206 by the end of the year. At the end of one year he would have $6 more and would be able to purchase two more zaps (2 X ($2.50 X 1.03), or 2 X $2.575 = $5.15) He would have $.85 left in change.</span>
The answer is: Angel investor
Angel investors only injected their capital with the businesses if they believe that the leaders are capable in making the decision by their own.
This hands-off approach in investments tend to be reall risky. But Angel investors tend to be wealthy enough to the point where they can afford the financial blow back even if a couple of their start up investments fail.
Answer:
2.27%
; 61.54%
Explanation:
Given that,
Sales/Total assets = 2.2x
Return on assets (ROA) = 5%
Return on equity (ROE) = 13%
Therefore,
Return on assets = Profit margin × Assets turnover
0.05 = Profit margin × 2.2
Profit margin = 0.05 ÷ 2.2
Profit margin = 0.0227 or 2.27%
Percent of total assets is from equity:
= Return on assets ÷ Return on equity
= 0.05 ÷ 0.13
= 0.3846 or 38.46%
Hence, the debt is as follows:
Debt = Assets - equity
= 1 - 0.3846
= 0.6154 or 61.54%
Answer:
The gross profit method of inventory valuation is not valid when
c. the gross margin percentage changes significantly during the year.
Explanation:
Gross Profit Method:
It is such method that is used to determine the value of ending inventory in a specific period.
- The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
- The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.
