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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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Match the following definitons with appropriate options given in below:
Len [333]

Answer:

1. A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.

-Demand Curve

2. The amount of a good that buyers are willing and able to purchase at a given price.

-Quantity Demanded

3. The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.

-Law of Demand

4. A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.

-Demand Schedule

Explanation:

5 0
3 years ago
Providing products,<br> services, and jobs has a<br> positive effect on this
Agata [3.3K]
Economy. And it may be good on the environment, but economy is what best fits this question.
4 0
3 years ago
Purple Feet Wine, Inc., receives an average of $14,000 in checks per day. The delay in clearing is typically four days. The curr
Dominik [7]

Answer:

The correct answer is $56,000.

Explanation:

According to the scenario, the given data are as follows:

Average checks per day = $14,000

Days in clearing = 4 days

Interest rate = 0.018% per day

So, we can calculate the company's float by using following formula:

Company's Float = Average checks per day × Days in clearing

By putting the value in the formula, we get

Company's Float = $14,000 × 4

= $56,000

8 0
3 years ago
Identify the risks exist in the conversion cycle of Central Production Limited.
11111nata11111 [884]

Answer:

Authorization of transactions:- Because of unclear subjugation, there is a potential risk of entering a money transfer again and again. To minimize this, all workers should adopt the rules for specific purchases, such as maintaining a set pricing list and guarantee a limited error distance.

Explanation:

The following are the risks which currently exist in the Central Production Limited conversion cycle:-

  • Lack of a "Maker and Checker" concept:- It is important because it executes the role of a sort account executive to check that the instructions and demands presented are correct and are not replicated. It would be extremely effective that someone in a position of power and authority might supervise certain rates and with certain operations.
  • Use of Hard-copies:- The production center supervisor will temporarily suspend the use of such hard copies for each production process. It is not only a resource loss, but risks being lost or duplicated as well. It really would give them a better chance if all online requests could be collected which would be far more effective and could be seen by all stakeholders. It will also lead to better leadership and faster distribution of information.
  • Wastage:- Tests should be in place to determine why additional material is needed above the normal volume, and it should be approved by a senior authority to the superintendent of the production line.
  • Supply Chain Management:- Interactions between a variety of agencies are too many. Use an ERP (Enterprise Resource Planning) device to help in streamlining the entire process flow will serve them well.
5 0
3 years ago
Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration.
ivolga24 [154]

Answer:

differential revenue = $7

so correct option is a.$7

Explanation:

given data

Product A costs = $6

contribution margin = $3

Product B costs = $12

contribution margin = $4

to find out

the differential revenue for this decision

solution

we get here the differential revenue for this decision that is express

so first we get here selling price for both product that is

selling price product A = Product A costs + contribution margin

selling price product A  = $6 + $3 = $9

and

selling price product B   = $12 + $4 = $16

so now we get differential revenue that is

differential revenue = selling price product B - selling price product A

differential revenue = $16 - $9

differential revenue = $7

so correct option is a.$7

4 0
3 years ago
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