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3 years ago

Simon Company's year-end balance sheets follow.

Business

1 answer:

Fofino [41]3 years ago

6 0

Answer:

1. 2014 = 11 % and 2013 = 15 %

2. 2014 = 1.30 times and 2013 = 1.41 times

3. 2014 = 14.27 % and 2013 = 21.16 %

Explanation:

1. Profit margin ratio

Profit margin ratio = Earnings Before Interest and Tax / Sales × 100

Therefore,

Profit margin ratio (2014) = ($ 52.400 + $ 9,550 + $12,300) / $675,000 × 100

= 11 %

Profit margin ratio (2013) = $ 72,575 + $ 8,925 + $13,000) / $630,000 × 100

= 15 %

2. Total Asset turnover.

Total Asset turnover = Sales ÷ Total Assets

Therefore,

Total Asset turnover (2014) = $675,000 ÷ $ 520,500

= 1.30 times

Total Asset turnover (2013) = $630,000 ÷ $446,550

= 1.41 times

3. Return on total asset

Return on total asset = Earnings Before Interest and Tax (EBIT) / Total Assets × 100

Therefore,

Return on total asset (2014) = $ 52.400 + $12,300 + $9,550 / $ 520,500 × 100

= 14.27 %

Return on total asset (2013) = $ 72,575 + $8,925 + $13,000 / $446,550 × 100

= 21.16 %

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ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction,

Rus_ich [418]

Answer: 1. D) Assets are understated

2. D) Car dealers

Explanation:

1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.

2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.

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3 years ago

LO 1.3Which of the following terms means the ability to work in cross-functional teams in order to complete a task?

Fittoniya [83]

Answer:

collaboration

Explanation:

Supervisory skills is the ability to monitor work, duties been carried out to ensure they are successfully completed.

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I hope my answer helps you

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4 years ago

Stacy is going to the store to buy milk and cereal. She will most likely use ____ in her consumer decision-making process.A) Rou

alexira [117]

Answer:

Letter A is correct. Routine response behavior.

Explanation:

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What does w.o mean on architectural plans?

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Wall Oven or Water Outlet

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Preferred stock of leaping dolphin inc. pays 8% on the $100 par value. what is the value of the stock if the appropriate discoun

ra1l [238]

Calculate the value of the stock:

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3 years ago