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charle [14.2K]
3 years ago
15

The balance sheet of California Clothing reports total equity of $600,000 and $700,000 at the beginning and end of the year, res

pectively. Net income and sales for the year are $65,000 and $1,300,000, respectively. What is California Clothing's return on equity?
Business
1 answer:
kolbaska11 [484]3 years ago
5 0

Answer:

10%

Explanation:

return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%

Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.

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2 years ago
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6 0
2 years ago
On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100
-BARSIC- [3]

Answer:

A. Wednesday

Explanation:

On which of the given days do you get a margin call? On Wednesday

Margin account will falls below the maintenance margin of $2,000 after the market close on Wednesday.

The margin call will be $2,000 - [2,700 - (100,000 - 97,843.72)] =$1,456.28.

7 0
3 years ago
Peterson Photoshop sold $1,300 in gift cards on a special promotion on October 15, 2021, and sold $1,950 in gift cards on anothe
Anastaziya [24]

Answer:

$1,300

Explanation:

Given that,

On November 15, 2021

sold gift cards = $1,950

Of the gift cards sold in November,

Redeemed in November = $195

Redeemed in December = $455

Therefore, the deferred revenue is as follows

= November sales - Redemptions

=  November sales - (Redeemed in November + Redeemed in December)

= $1,950 - ($195 + $455)

= $1,950 - $650

= $1,300

4 0
4 years ago
Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60.
maksim [4K]

Answer:

10.71%

Explanation:

The computation of the required rate of return on this preferred stock is shown below :

The Required return on preferred stock is

= Dividend ÷ market value of preferred stock

= 7.50 ÷ $70

= 10.71%

By dividing the dividend from the market value of preferred stock  we can get the  Required return on preferred stock and the same is to be considered

therefore we ignored the par value i.e $60 as this is not relevant

5 0
3 years ago
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