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bezimeni [28]
3 years ago
8

By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on

sales of $4 million? Assume that the reduction in assets has no effect on sales or profit margin
Business
1 answer:
Bond [772]3 years ago
8 0

Answer:

ROA= 10%  TA = 2.000.000  

ROA=12%  TA         = 1.666.667

Reducction in assets    333.333

Explanation:

ROA=Net income/Average Total Assets

ROA = (net income / sales) x (sales / Total Assets)

ROA = Margin x Average total assets

10%=5%X(4000000/TA) 2,0 = 4000000/TA

12%=5%X(4000000/TA)  2,4 = 4000000/TA

ROA= 10%  TA = 2.000.000

ROA=12%  TA = 1.666.667

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Which of the following is an example of an illustrative thesis statement: Select one:
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Answer:

The correct answer is letter "B": The details, extra challenges, and character commitment found in the book Ready Player One make it far more enjoyable than the movie.

Explanation:

Thesis statements summarize in one sentence the main idea of a research study or an essay. The sentence is a direct answer to a question. It must be concise, direct and easy to read so anybody can understand what the content of the following pages could explain.

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3 years ago
Many firms engage in __________ planning to prepare the organization, its managers, and its employees to cope with sudden catast
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Crisis Panning

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6 0
2 years ago
Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump su
Sedaia [141]

Answer:

$78,199

Explanation:

If the market price of common stock is $165 per stock, then selling 500 common stocks should = $82,500

If the market price of preferred stock is $230 per preferred stock, then selling 100 preferred stocks should = $23,000

If we add both we would get $105,500. If we want to allocate the proceeds proportionally according to their market prices:

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preferred stocks = ($23,000 / $105,500) x $100,000 = $21,801

the journal entries should be:

  • Dr Cash account 78,199
  • Cr Common Stock account 5,000
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Health insurance is an agreement in which an insurer chooses to pay a portion or all of a person's medical expenses in exchange for a fee.

Some key features regarding the health insurance are-

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To know more about the health insurance, here

brainly.com/question/1941778

SPJ4

8 0
1 year ago
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