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
Strike441 [17]
3 years ago
11

The Carla Vista Timber Company has the following ratios: Net sales/Total assets = 3.00; ROA = 9.30%; ROE = 16.1%. What are Carla

Vista’s profit margin and debt ratios? (Round answers to 2 decimal places, e.g. 12.55 or 12.55%.)
Business
2 answers:
Leni [432]3 years ago
6 0

Answer: profit margin ratio = 0.03 and dept ratio = 1.73

Explanation:

Net ratio/total assets means assets turnover which is equal to 3

ROA = profit margin × assets turnover

ROA = 9.3% = 0.093

ROA = profit margin × 3

Profit margin = 0.093/3

Profit margin = 0.031

Also,

ROE = ROA × dept - equity margin ratio

Dept-equity margin ratio means dept ratio.

Dept ratio = ROE/ROA

Dept ratio = 16.1/9.3 = 1.731

Sidana [21]3 years ago
6 0

Answer:

Profit margin = 3.10%   Debt Ratio = 0.42%

Explanation:

Gross profit margin represents the gross profits generated from every dollar in sales

Debt ratio measures the amount of debt a firm has used to finance it operations

First compute the equity multiplier

given by = ROE/ROA

              = 16.1%9.30%

               1.73

From the equity multiplier compute the debt ratio

DR = 1- 1/Equity multiplier

     =1-1/1.69

      =0.42

from the information given the ROE formula according to du point analysis can be used

ROE = Profit margin × asset turnover × equity multiplier

16.1 =Profit Margin ×3 × 1.73

Profit margin = 16.1/3*1.73

                      =3.10%

You might be interested in
Dr. regan was hired by the siri company to assist them with retaining their employees without lowering profits and expectations.
Anestetic [448]
Dr. Regan was hired to help retain employees by the Siri corporation without losing money and expectations. He was the one who suggested that employees could decorate their work spaces and this would help employees feel more comfortable where they have to work 8 or more hours per day. This then helped the company by people not calling in and less people quit their jobs. Dr. Regan was most likely an industrial and organizational psychologist. Many companies hires these types of psychologists to help their employees with stress at work and to put employees at ease. 
7 0
3 years ago
The most important and volatile component of the current account in the U.S. balance of payments is:
astraxan [27]

Answer: net exports

Explanation:

Balance of payment simply shows the estimation of the inflows and outflow of a nation's money for a certain year. It should be noted that current account of the balance of payment consists of three main components which are the trade in Goods, the trade in services, and the transfer payments.

The trade in goods is segregated into imports and export. This therefore makes the net exports volatile and vital because it has higher share in a current account.

3 0
3 years ago
One role of marketing communications in the problem recognition stage of the purchase decision-making process is to:
vlada-n [284]

Answer: help distribution partners identify product availability problems.

Explanation:

The options are:

a. alert the company about problems in conveying a message to target consumers.

b. resolve consumer problems with customer service outreach.

c. remind consumers of existing needs.

d. help distribution partners identify product availability problems.

e. educate consumers about features and benefits.

One role of marketing communications in the problem recognition stage of the purchase decision-making process is to help distribution partners identify product availability problems.

It should be noted that marketing communications can help identify the needs or problem that consumers have.

6 0
3 years ago
The Wilson Company purchased $35,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,800 for freight costs
Olin [163]

Answer:

Option A, total debits to the inventory account would be $37,800, is correct

Explanation:

The cost of the merchandise inventory to Wilson Company is the cost of the inventory purchased and the freight-in cost.

In other words, the amount to be recognized in merchandise inventory account is the sum of both amounts i.e $35,000+$2800=$37,800

This would be debited to merchandise inventory and $2,800 would be credited to the cash account while $35,000 is credited to accounts payable

4 0
3 years ago
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Deprecia
ludmilkaskok [199]

Answer:

all the given figures are wrong but i explained the correct procedure.

Explanation:

INCOME STATEMENT

Fees earned                            17400

Expenses:  

Depreciation expense      1300  

Insurance expense      400  

Supplies expense              3800     5500

Net Income                               11900

Therefore, The Net income for the period is $11900.

3 0
3 years ago
Other questions:
  • A(n) _______ is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt.
    15·1 answer
  • Peter is playing hide and seek with his six year old nephew teddy peter decides to look around the house room by room and then s
    11·1 answer
  • What are brokerage firms? 2. what are depository and nondepository financial institutions? how do they differ? 3. what are credi
    13·1 answer
  • Ferris owns an apartment in an apartment complex. The apartment-complex rules require the owner of each apartment to maintain it
    5·1 answer
  • Tuna Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by
    12·1 answer
  • In 2021, management discovered that Dietlikon Production had debited expense for the full cost of an asset purchased on January
    7·1 answer
  • Question 2<br> A style of writing in which the main point is stated early in the message.
    5·1 answer
  • Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corp
    9·1 answer
  • Provide examples of each: consumer durable goods, consumer nondurable goods, and services.
    10·1 answer
  • Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!