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miskamm [114]
3 years ago
14

River Corp's total assets at the end of last year were $320,000, dividends paid were $12,000 and its net income was $32,750. Wha

t was its return on total assets
Business
1 answer:
8090 [49]3 years ago
5 0

Answer:

Return on Total Assets = 10.2%

Explanation:

The Return on Total Assets (ROTA) of a company is a ratio of the measure of a company's earnings before income and taxes, relative to its total net assets. Simply put, it is the amount of money a company receives in a financial year, relative to its total assets. The formula for calculating ROTA is given as follows:

ROTA = ( EBIT) ÷ Total Assets

where:

EBIT = Earnings before income and taxes = net income = $32,750

Total Assets = $320,000

∴ ROTA = 32,750 ÷ 320,000 = 0.102

converting 0.102 to percentage, we multiply by 100

∴ ROTA = 0.102 × 100 = 10.2%

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Alpaca Corporation had revenues of $250,000 in its first year of operations. The company has not collected on $18,900 of its sal
Sever21 [200]

Answer:

$84,360.00  

Explanation:

The cash balance at the end of the year is simply total cash receipts minus total cash payments which is further analyzed below:

Cash receipt from sales=total sales-accounts receivable=$250,000-$18,900=$ 231,100.00  

Cash paid for merchandise purchase=purchases-accounts payable=$96,000-$27,000=$69,000

Salaries paid     $12,700

Cash from  owners is $14,000

cash from borrowing is $14,000

interest paid is $3800

insurance paid is $7,800

Tax paid=(sales-purchases-salaries paid-insurance cost(one year)-interest paid)*tax rate

insurance for one year=$7800*1/2=$3,900

tax paid=($250,000-$96,000-$12,700-$3,800-$3,900)*40%=$53440

Cash balance=$231,100-$69,000-$12,700+$14,000-$14,000-$3800-$7800-$53440=$84,360.00  

 

4 0
2 years ago
The demand for a product is inelastic with respond to price if:<br> a.consumers are
Step2247 [10]
Not all of the answer choices are here
5 0
3 years ago
Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p
s344n2d4d5 [400]

Answer:

the nominal interest rate is 7%

Explanation:

The calculation of the nominal interest rate is given below:

As we know that

Nominal interest rate is

= Real interest rate + Inflation rate

So,

The nominal interest rate should be

= 5% + 2%

= 7%

Hence, the nominal interest rate is 7%

The same is to be considered and relevant  

5 0
3 years ago
The short-run aggregate supply curve is positively sloped because:
Varvara68 [4.7K]

Answer:

(D) higher prices lead to higher profit and higher output.

Explanation:

When the price increase, the profitability of the firm increase, therefore firm produces more at high price. Hence at high price output increase. This is the reason why SRAS curve is positively sloped.

4 0
3 years ago
Edward is in charge of hiring at his agency and consistently collects biographical data from applicants. What is a primary reaso
zhenek [66]

Answer:

B) It predicts future behavior based on the applicant's past

Explanation:

Generally the biographical information collected by human resource managers includes your age, sex, education, work experience and interests or even hobbies. Obviously the age, education and work experience is the most relevant information for them. Biographical data or biodata is useful because it helps to predict future behavior based on their past activities.

4 0
3 years ago
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