All categories

3 years ago

Compute and Compare ROE, ROA, and RNOA

Business

1 answer:

FinnZ [79.3K]3 years ago

6 0

Answer:

ROE - 20.8%

ROA - 9.88%

RNOA - 20.33%

Explanation:

ROE = Net income / Average shareholder equity

Average shareholder equity = 48,633 + 46,878 / 2 = 47,770.50

ROE = 9,938 / 47,770.50

ROE = 20.8%

ROA = Net Income / Average Total Assets

Average total assets = 110,903 + 90,266 / 2 = 100,584.50

ROA = 9,938 / 100,584.50

ROA = 9.88%

RNOA = NOPAT / Average net Operating Assets

Average net Operating Assets = 56,535 + 51,447 / 2 = 53,991

NOPAT = Net Operating income before tax - Tax expense

NOPAT = 13,871 - 2,896 = 10,975

RNOA = 10,975 / 53,991

RNOA = 20.33%

You might be interested in

The prevailing budget philosophy prior to Keynes called for a balanced budget. Keynes argued that the government should not bala

shepuryov [24]

The period which Keynes argued that the government should not balance its budget but instead have budget DEFICITS was during:

D. Economic recessions.

According to the given question, we are asked to show the period which Keynes argued that the government should not balance its budget but instead have budget DEFICITS.

As a result, we can see that Keynes, one of the fathers of economics stated that it was important for the government to have budget deficits so that they could adequately navigate through the economic recessions at that periiod.

Therefore, the correct answer is option D

Read more about Keynesian Economics here:

brainly.com/question/14223529

4 0

2 years ago

QUESTION 9 of 10: When naming a business, you should:

frutty [35]

Think of a catchy slogan to go with it

3 0

3 years ago

Read 2 more answers

Make a list of at least three items that are important to double check before submitting a loan application to underwriting. Lis

xxMikexx [17]

Answer:

Please see answers below.

Explanation:

A. Three important Items to double check before submitting a loan application to underwriting.

• Completeness of data : One has to be sure that all important details are captured hence none is left out. It means that there are no missing information on the application.

• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.

• Documentations required by the loan programme. All Documentations required by the loan programme must be double checked before submitting a loan application to underwriting.

B. List at least two things you would be sure to tell a borrower in preparation for closing

• I will seek clarity in terms of the money borrower would be bringing to the closing table.

• The date,time,venue of closing are essential for the closing hence will be communicated to the borrower. Also, there are no right or wrong answers that may be asked or given by the borrower during the closing.

C. List at least three calculations that are typically used during the course of mortgage loan transaction.

• Income calculation

• Front end and back end ratio (DTI ratio)

• Monthly payment.

3 0

3 years ago

The Marshall Company has a process cost system. All materials are added when the process is first begun. At the beginning of Sep

Mademuasel [1]

Answer:

c) 48,000 units

Explanation:

The question is to compute the equivalent units of materials in September for Marshall Company

It is computed as follows:

1) Beginning Equivalent Unit

At the beginning, Units = 0, Percent completed = 0 and Equivalent unit= $0

Equivalent Units Started ad Completed

2) Started Units= 50,000 units

Units still in process at the end of September = 5000 units

Started and Completed = 50,000 - 5,000 = 45,000

Since the Units completed is 45,000, it means 100% completed equivalent unit is 45,000

3) Closing Equivalent Units

In process = 5,000 units and percent completed is 3/5

Equivalent unit is 3/5 x 5000 = 3000 units

Finally, total equivalent units for conversion costs in September

= 0 + 45,000 + 3,000

=48,000 units

4 0

3 years ago

REV Co. is reviewing the accounting and disclosure requirements for its significant guarantees, commitments, and contingencies,

victus00 [196]

Answer:

REV Co. has made disclosure in notes to the financial statement section. The disclosures include the details about related party transaction which was carried out by the brother of Chief Operating Officer. It is ensured that the transaction was completed on arm's length.

Explanation:

Disclosures are mandatory for any company which is listed. The companies provide details of specific transactions in Notes to the Financial statements. These additional information provides details of transaction to the shareholders and removes any ambiguity in the transaction. The purpose of disclosures is to ensure the shareholders that the company has not incurred any fraudulent activity in certain transactions and all transactions are fair and complies with International Accounting Standards.

5 0

2 years ago