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3 years ago

Xyz stock price and dividend history are as follows:

1 answer:

7 0

1. The rate of return for each year is 4.05%
2010 $100 $4 => 4%
2011 $110 $4 => 3.6%
2012 $90 $4 => 4.4%
2013 $95 $4 => 4.2%
Average is 4.05%
2. The dollar-weighted rate of return is
-3(4%) - 2(3.6%) + 1(4.4%) + 4(4.2%)
14.75%

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On October 15, 2018, Jon purchased and placed in service a used car. The purchase price was $25,000. This was the only business

Anika [276]

Answer: Total deduction= $2,528

Explanation:

25000*0.2*0.8=4,000

Auto maximum = $3,160

Total deduction = 3,160*0.8

Total deduction= $2,528

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3 years ago

Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current ass

Y_Kistochka [10]

Answer:

1. 1.5 Times

2.$100,000

3.0.775 Times

4.$75,000

5.$100,000

Explanation:

Liquidity ratios can be found by just simply putting the given values in their appropriate formulas. All you have to memorize is the simple formulas

1.Current Ratio

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

CURRENT RATIO = $300,000/$200,000

CURRENT RATIO = 1.5 Times

2. Working Capital

WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES

WORKING CAPITAL= $300,000 - $200,000

WORKING CAPITAL= $100,000

3. Acid ratio

ACID RATIO = CURRENT ASSETS - INVENTORY - PREPAID EXPENSES/CURRENT LIABILITIES

ACID RATIO = ($300,000 - $110,000 - $35,000)/$200,000

ACID RATIO = 0.775 Times

4. Receivable turnover

RECEIVABLE TURNOVER = CREDIT SALES/AVERAGE RECEIVABLE

RECEIVABLE TURNOVER = $750,000/$75,000

RECEIVABLE TURNOVER = 10 Times

Working

AVERAGE RECEIVABLE = (Opening receivables+Closing receivables)/2

AVERAGE RECEIVABLE = ($55,000 + $95,000) / 2 = $75,000

5. Inventory Turnover

INVENTORY TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY

INVENTORY TURNOVER = $400,000 / $100,000

INVENTORY TURNOVER = 4 Times

Working

AVERAGE INVENTORY = (Opening inventories+Closing inventories)/2

AVERAGE INVENTORY = (110,000 + 90,000)/2

AVERAGE INVENTORY = $100,000

3 0

3 years ago

Can you breifly explain why stockholders' investment and revenues increase stockholders' equity, while dividends and expenses de

Scilla [17]

From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.

Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.

Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).

5 0

3 years ago

Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?

WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales = $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

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3 years ago

Question 4

denis23 [38]

Answer:

B. Accounts Receivable

7 0

3 years ago

Read 2 more answers