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Hunter-Best [27]
4 years ago
15

The income statement for Stretch-Tape Corporation reports net sales of $540,000 and net income of $65,700. Average total assets

for the year are $900,000. Stockholders' equity at the beginning of the year was $600,000, and $30,000 was paid to stockholders as dividends during the year. There were no other stockholders' equity transactions that occurred during the year.Required:Calculate the return on assets, profit margin, asset turnover, and return on equity ratios.
Business
1 answer:
Mnenie [13.5K]4 years ago
8 0

Answer:

7.3%; 12.17%; 0.6 times; 15.95%

Explanation:

Return on assets:

= Net Income ÷ Average total assets

= ($65,700 ÷ $900,000) × 100

= 7.3%

Profit Margin:

= Net Income ÷ Net Sales

= ($65,700 ÷ $540,000) × 100

= 12.17%

Asset Turnover:

= Net Sales ÷ Average Total Assets

= $540,000 ÷ $900,000

= 0.6 times

Return on Equity:

= Net Income before dividend ÷ Equity

= [($65,700 + $30,000) ÷ $600,000] × 100  

= ($95,700 ÷ $600,000] × 100  

= 15.95%

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When countries sell off state-owned enterprises and privatize them, it usually results in a(n) Multiple Choice increase in moder
lisov135 [29]

Answer:

increase in modernization by new investors.

Explanation:

When countries sell off state-owned enterprises and privatize them, it usually results in an increase in modernization by new investors. This is because, new but private investors will want to earn quickly their Investment back, and in so doing, will pump adequate capital into the business, so as to attract customers and enhance iamge of the company.

Note also that:

1. Decline in productivity throughout the private sector can not be caused by sales of geovenrment assets to private investors.

2. Acquisition of government ownend assets can not leads to lack of accommodation of outside investors.

3. Sales of government assets can not continuing to drain on future natural resources. As this will even lead to money being spent somewhere else or wisely saved for future and cogent use.

4. Change in political leadership can not be caused by sales of government assets to probate imvestor(s).

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4 years ago
The typical _____ bond pays interest periodically, usually every six months, during the life of the bond and repays the entire p
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The typical <u>debenture</u> bond pays interest periodically, usually every six months, during the life of the bond and repays the entire principal amount borrowed at maturity.

Debenture bond is also called as unsecured bond which pays interest periodically, usually every six months. This bond is unsecured by any collateral, such as U.S. Treasury Bonds.

Debenture bond helps large companies who are with good credit scores, and good cash flow, lots of assets. Thus, these companies are more likely to use debenture bond, which let them avoid tying up assets.

Hence, the debenture bond pays interest periodically, usually every six months.

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1 year ago
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Answer:

By $41,000 the next year's sales are derived from the side effects of adding the new product to its sales offerings.

Explanation:

For calculating the sale for next year, the tent expense and climbing gear is to be considered. With the help of these, the next year sale from the side effects can be derived. The sleeping bag cost is not to be considered so it would not be taken for calculation. The computation is shown below:

=  (Tent Expense Next year  + Climbing gear Next year ) - (Tent Expense Previous year  + Climbing gear Previous year )

= ( $264,000 + $426,000) - ( $238,000 + $411,000)

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3 0
3 years ago
Network externalities are important because Choose one:
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Answer:

(C) as the network size grows, the services become cheaper.

Explanation:

Network externalities relate to the economies of scale, it is basically the relation of demand with the quantum.

As when the production increases then due to increase in number of units, the cost of producing is less. Accordingly if the supply is more then price is less for the consumers. This clearly relates to services also.

Thus, when there is a growth in network size then the cost of such service or goods tend to decline as on per service basis.

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