Answer:
9.17%
Explanation:
sustainable growth rate = return on equity x retention rate
- return on equity = 13.1%
- retention rate = 1 - payout rate = 1 - 30% = 0.7
sustainable growth rate = 13.1% x 0.7 = 9.17%
A company's sustainable growth rate is the growth rate that the company can achieve without raising new capital either by issuing debt or stocks. It basically refers to how much the company can finance its current or future projects by investing its retained earnings.
Emilio and Dylan are conducting a SWOT Analysis of their construction business.
A SWOT analysis enables a company to find out:
- Strengths - the parts of its company that set it apart and give it an advantage
- Weaknesses - areas that they can and should improve on to be more successful
- Opportunities - whatever developments in their industry that they can leverage on to become more successful
- Threats - things that they need to watch out for that could give them problems in the near future
This is what Emilio and Dylan are doing and it is very important as it can allow a company to see the things it needs to do to be successful.
In conclusion, Emilio and Dylan are conducting a SWOT analysis to ensure that their business grows.
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Answer:
The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:
Debit Cash $162,000
Credit Accounts Receivable $162,000
The company did not record revenue because they did not sell the harvester. This was only the advance payment.
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
