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
Vesnalui [34]
3 years ago
12

Financial data for Stirling Inc. for last year are as follows:

Business
1 answer:
Tom [10]3 years ago
8 0

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

<u><em>profit margin:</em></u>

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

<u><em>Assets turnover:</em></u>

\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

<u><em>ROI</em></u>

\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

<u>Residual Income:</u>

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

You might be interested in
You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The
Novosadov [1.4K]

Answer:

Have a good day today! You got this :)

7 0
3 years ago
Increasing the amount of money in the economy results in
Elena-2011 [213]

Answer:

By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.

Explanation:

It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.

7 0
3 years ago
Generally, ____ indicate(s) the size of a firm relative to their sector. Group of answer choices sector ratios market share rati
ruslelena [56]

Answer:

b. Market share ratio

Explanation:

When the sizes of firms of a particular sector/market are being compared, a common basis for comparison is on the basis of total sales, a larger firm will have a higher ratio of total sales in the sector.

The "concentration ratio" is derived from the market shares. It gives the sum of market shares of the few largest firms in the sector, and is a measure of market power. It is not the correct choice in this case.

4 0
2 years ago
In the aggregate expenditures model if aggregate expenditures equal 800 billion and real GDP equals 600 there is a______________
Llana [10]

Answer:

unplanned inventory accumulation equals -$200 billion.

Explanation:

As we know that

Unplanned inventory equals to

= Real GDP - aggregate expenditures

= 600 billion - 800 billion

= -$200 billion

It shows a difference between the real GDP and the aggregate expenditure

Since the real GDP is less than the aggregate expenditure, so the unplanned inventory should come in negative amount else it comes in a positive amount

4 0
3 years ago
The iPod is a very popular item among people of all ages. The demand is continuing to grow. The iPod's introductory price was ar
Zina [86]

Answer:

E. Skimming Pricing.

Explanation:

This method or strategy is mainly used in marketing strategy for a new market entry especially because of its uniqueness and also when the value of the commodity to be sold is of a very high qualities and importance.

It is also seen as a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price sensitive segment of the population. The skimming strategy gets its name from "skimming" successive layers of cream, or customer segments, as prices are lowered over time.

7 0
3 years ago
Read 2 more answers
Other questions:
  • As a regional sales officer, one of brandon's job responsibilities is to process the yearly appraisal forms of his subordinates
    12·1 answer
  • Tp-7 on gasoline powered boats, when should the blower be operated?
    13·1 answer
  • The efficient-market hypothesis:a) has little empirical validity. b) implies that security prices properly reflect information a
    11·1 answer
  • Which of the following is a severe and long-lasting economic downturn that is worse and deeper than a recession?
    10·1 answer
  • The name of the Nobel prize-winning economist who argued against the Tragedy of the Commons thesis is ________.There is a short
    10·1 answer
  • Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3200 jackets, and he expects his June u
    13·1 answer
  • 10. Which of the following is NOT a trading instrument? *
    13·1 answer
  • You are employed by Company A, which makes motorcycles. You have been asked to write a brief report (following a report format)
    6·1 answer
  • Media Literacy gives you the ability to do what? A. operate complicated technologies, B. Use media production tools to craft mes
    12·1 answer
  • Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organizati
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!