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
zhenek [66]
3 years ago
11

Suppose during 2014 that Federal Express reported the following information (in millions): net sales of $35,497 and net income o

f $98. Its balance sheet also showed total assets at the beginning of the year of $25,633 and total assets at the end of the year of $24,244. Calculate the asset turnover and return on assets. (Round answers to 2 decimal places, e.g. 6.25 or 17.54%.)
Business
2 answers:
irina [24]3 years ago
8 0

Answer:

Asset Turnover = $35,497 ÷ $ 24,938.5 = 1.42

Return on Assets: $98 ÷ 24,938.5 = 0.39%

Explanation:

  • Asset Turnover Ratio is an efficiency ratio indicate how well the company assets are utilized in order to generate sales revenue or sales income in $.

Formula: Net Sales ÷ Average Total Assets.

*Average Assets = (Opening Assets + Closing Assets) ÷ 2

So the average assets are: (25,633+24,244) ÷ 2 = 24,938.5

Asset Turnover = $35,497 ÷ $ 24,938.5 = 1.42

  • Return on Assets is a ratio that shows the percentage how profitable a company's assets are in generating revenue.

Formula: Net Income ÷ Total Average Assets.

Return on Assets: $98 ÷ 24,938.5 = 0.39%

Lorico [155]3 years ago
5 0

Answer:

Asset turnover 1.42

Return on assets 0.39%

Explanation:

Here, we are asked to calculate the asset turn over and the return on assets.

Mathematically;

Asset turnover = Net sales/Average total assets

Net sales = $35,497

average total assets = (25,633+24,244)/2 = 24938.5

Asset turnover = 35,497/24938.5 = 1.42

The return on assets can also be calculated mathematically.

mathematically, return on assets = Net income/Average total assets

Net income = $98

Average total assets = 24,938.5 from above

= 0.0039 or 0.39%

You might be interested in
Osborn Manufacturing uses a predetermined overhead rate of 18.20 per direct labor-hour. This predetermined rate was based on 12,
Leto [7]

The correct statement is that the under applied overheads for Osborn Manufacturing Company is calculates as a negative balance of $5700 at the overhead rate of $18.20.

Explanation:

The calculation of the overhead costs is done by using the formula for under applied overheads and calculating the required values from such given information.

Calculation of manufacturing overheads

The formula for the calculation of manufacturing overheads whether under applied or over applied can be determined is as below,

Under - applied Overheads = Applied Overhead - Actual overhead

However, to calculate further the actual overheads can be calculated as below by applying the given values to the formula,

Applied Overheads = Actual Level of Direct labour hours x overhead rate hours

Applied Overheads = 11500 x 18.20

Applied Overheads = $209300

Now applying the values to the formula, we get,

Under - applied Overheads=209300 - 215000

Under - applied Overheads = -$5700

Hence, the correct statement is that under applied overheads for Osborn Manufacturing Company is calculated as a negative balance of $5700 at the overhead rate of $18.20.

Learn more about manufacturing overheads here:  

brainly.com/question/13214087

#SPJ4

5 0
1 year ago
Pool Perfection provided pool maintenance services worth $1,600 during July; in June, the customers had paid in advance for thes
arlik [135]

Answer:

$1,600

Explanation:

It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600

7 0
3 years ago
In a period when costs are declining and inventory quantities are stable, the lowest cost of goods sold would be reported by usi
shusha [124]

Answer:

LIFO

Explanation:

To record the lowest cost of goods sold, the ending inventory amount must be high. This would only be high in LIFO whish would not be affected by declining costs.

By using LIFO (Last in First Out) inventory valuation will be based on the value of the earliest goods purchased instead of latest goods purchased as in FIFO (First In First Out)

7 0
3 years ago
"A stock is quoted at $18 - $19. If a customer sells 100 shares to the dealer, under the FINRA 5% Policy, a fair and reasonable
lidiya [134]

Answer:

$18

Explanation:

Based on the information given above under the FINRA 5% Policy a fair and reasonable mark-down is based upon the price of $18 reason been that we were been ask about how much price will the mark-down price be based in a situation where the customer SELLS 100 shares to the dealer which means that mark-down will be computed from the inside bid price of the amount of $18.

5 0
3 years ago
FASB No. 52 is a statement issued by the Financial Accounting Standards Board requiring American MNCs to first convert the finan
Vesna [10]

Answer:

all-current-rate method

Explanation:

The all-current-rate method is the method by which most items in the financial statements are translated at the current exchange rate

In current-rate-method,

the income statement is translated at the weighted average exchange rate,

assets and liabilities are translated at the current rate, issued capital stock is translated at the exchange rate.

The balance sheet must be balanced. Cumulative Translation Adjustment (CTA) balances the asset side of the balance sheet with the liabilities and owner’s equity side of the balance sheet.

5 0
3 years ago
Other questions:
  • Which of the following is NOT a benefit of specialization and trade? Select one: a. Increase in productivity from specialization
    15·1 answer
  • Which one of the following is not an assumption of the EOQ model? Decisions for one item can be made independently of decisions
    6·1 answer
  • . If incomes rise rapidly in the United States and U.S. preferences for foreign goods strengthen, we
    6·1 answer
  • Which type of triangle is best for construction?
    9·1 answer
  • Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already h
    15·1 answer
  • What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents
    8·2 answers
  • Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed
    9·1 answer
  • An individual is both an appraiser and a real estate broker. What are the individual’s USPAP obligations when preparing listing
    9·1 answer
  • Rom what you know of the company so far, what will be among the variousconstituencies that the CSIRT will serve?
    13·1 answer
  • You bought Sumsung stock for $50 on April 1. The stock paid a dividend of $5 on July 1, and had a price of $53. It is now Oct. 1
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!