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Hunter-Best [27]
3 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]3 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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A tax year you choose, other than the calendar year, is known as a(n)
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Answer:

it is a. bonus year

Explanation:

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Suppose you are the manager of a local water company, and you are instructed to get consumers to reduce their water consumption
Veronika [31]

The price of the water needs to be raised by 40% when the consumption of water reduces by 10% and the price elasticity of demand results to 25%.

<h3>What is meant by the price of elasticity of demand?</h3>

The price elasticity of demand is determined as the proportionate variation in quantity with respect to variation in the price of a good.

Given values:

Change in water consumption (fall): 10%

Price elasticity of demand: 25%

Computation of percentage change in the price of water:

\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=\frac{\rm\ Change \rm\ in \rm\ water \rm\ consumption}{\rm\ Price \rm\ elasticity \rm\ of \rm\ demand} \\\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=\frac{10\%}{25\%} \\\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=40\%

Therefore, there is an increase in water price by 40%.

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6 0
2 years ago
Minimizing Costs For its beef stew, Betty Moore Company uses aluminum containers that have the form of right circular cylinders.
netineya [11]

Answer:

h = 28/πr² or 28/(π((14/π)^⅔))

r = (14/π)^⅓

Explanation:

Given

Let r = radius, h = height of the cylinder

Volume, V =28in³

V = πr²h ----- volume of a cylinder

πr²h = 28 --- make h the subject of formula

h = 28/πr²

Area of the the cylinder is;

A = 2πr² + 2πrh

Substitute 28/πr² for h to get area in terms of radius

A = 2πr² + 2πr(28/πr²)

A = 2πr² + 56/r

Differentiate A with respect to r

dA/dr = 4πr - 56/r²

Set dA/dr to 0 (.....using the least amount of metal)

4πr - 56/r² = 0

(4πr³ - 56)/r² = 0 --- Multiply through by r²

4πr³ - 56 = 0

4πr³ = 56 --- make r the subject of formula

r³ =56/4π

r³ = 14/π

r = (14/π)^⅓

h = 28/πr²

h = 28/(π((14/π)^⅔))

6 0
3 years ago
Read 2 more answers
Which process is used to produce very high volume products where little product variety is​ required? A. job shop B. batch produ
lesya692 [45]

Answer:

D. mass assembly

Explanation:

Mass assembly is a process used to produce very high volume products where little product variety is​ required.

This ultimately implies that, mass assembly is a manufacturing technique used by various industries or companies to produce standardized products (goods) in large quantities through the use of automated machineries or assembly lines from start to finish.

Hence, mass assembly avails business owners the ability or opportunity to manufacture their products in large quantities so as to enable them meet the needs or requirements of their customers for a long period of time.

8 0
2 years ago
The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 3600 units, the actual direc
Vera_Pavlovna [14]

Answer:

See below

Explanation:

Given the above information, the total direct labor variance is computed as;

Total direct labor variance = Standard cost - Actual cost

Standard cost = 3,600 units × 1.5 × $15 = $81,000

Actual cost = $74,400

Total direct labor variance = $81,000 - $74,400

Total direct labor variance = $6,600 Favourable

5 0
3 years ago
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