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mafiozo [28]
3 years ago
8

Last year, DJ's Soda Fountains, Inc. reported an ROE = 27 percent. The firm's debt ratio was 50 percent, sales were $9 million,

and the capital intensity ratio was 1.5 times. What is the net income for DJ's last year? Multiple Choice a. $1.22m b. $1.82m c. $2.43m d. $2.84m
Business
1 answer:
notsponge [240]3 years ago
7 0

Answer:

b. $1.82m

Explanation:

Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.

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Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for
Oksi-84 [34.3K]

Answer:

1. In a Year 20,367 20,017

2. In a Year 21,333 21,917

3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Explanation:

1. Using NPW Analysis

Walmart Kit Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC PV 2.71 5.05

Amc 27100 60600

Total Cost 61100 120100

In a Year 20,367 20,017

2. Using EUAW Analysis

Walmart Kit

Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC 30000 72000

Total 64000 131500

In a Year 21,333 21,917

In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Hence Target product will be the best option we would advice the management to go for.

7 0
3 years ago
A nonsufficient-funds check was returned to your company. How does the bank treat this on your bank statement?
Anit [1.1K]

Answer:

B. IT'S SHOWN AS A DEBIT MEMO

Explanation:

A bank creates a debit memo when it charges a company a fee on its bank statement, thereby reducing the balance in the company's checking account. Thus, if a bank account has a balance of $1,000 and the bank charges a service fee of $50 with a debit memo, the account then has a remaining balance of $950. Examples of charges that can cause debit memorandums are bank service charges, bounced (not sufficient funds) check fees, charges for the printing of check stock, and rental fees for the use of remote deposit capture scanners and software

8 0
4 years ago
Galatea Foods was founded in Greece by Galatea Chronos in 1978, and the company spread rapidly through Western Europe. Ms. Chron
Alina [70]

The company probably uses the multidomestic strategy.

<h3><u>What is a multidomestic strategy?</u></h3>
  • A multi-domestic strategy is one in which businesses adapt both their product lineup and their marketing approach to suit several national contexts in an effort to maximize local responsiveness.
  • Each large national market where commerce is conducted typically has established production, marketing, and R&D operations.
  • The structure of multinational corporations is described by an alternative use of the phrase.
  • International or multinational businesses advertise comparable products in numerous countries and benefit from economies of scale through shared overhead.

Multinational corporations can achieve more localized management by having separate headquarters in many nations, but at a higher cost by forgoing the economies of scale through cost sharing and centralization.

Know more about multidomestic strategy with the help of the given link:

brainly.com/question/14989951

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4 0
1 year ago
A decrease in supply is caused by:
ArbitrLikvidat [17]
D it has to be.........
4 0
3 years ago
Twenty-six years ago, several small vineyard owners in california joined voluntarily to market their grapes and wine in an attem
pentagon [3]
<span>Diversification. The wine got them started and they progressed into the very items that brought them income. They are trying to control the market and also expand into financial and tech so you can consider them a business development business.</span>
8 0
3 years ago
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