Answer:
Paid-in capital.
Explanation:
Philip's Inc. reports stockholders' equity on its financial statements. The two items reported in the stockholders' equity section of Philip's balance sheet are paid-in Capital and Retained Earnings.
In Financial accounting, Paid-in capital is one of the most essential components of the equity of a business and can be defined as the payments received in full (cash or assets) from shareholders (creditors or investors) in exchange for a company's stock. It comprises of common stock and preferred stock.
Answer:
false
it can increase instead of decreasing
ROE = 15.40 is the right answer.
ROE = (profit margin x asset turnover x equity multiplier)
ROE = (7 x 1.63 x 1.35)
ROE = 15.40
<h3>What is Return on Equity?</h3>
The efficiency of a company's management team in managing the capital that shareholders have invested in it can be gauged by investors using the ratio known as return on equity (ROE). In other words, return on equity evaluates how profitable a company is in comparison to the equity held by stockholders. A company's management is more effective at generating revenue and growth from its equity financing the higher the ROE.
Using ROE, one may assess a business's position in relation to the market and its rivals.
The method is especially useful when comparing businesses in the same industry since it can be used to evaluate almost any company with a focus more on tangible than intangible assets and to identify which businesses are more financially efficient.
Shareholder equity divided by net income is referred to as the return on equity (ROE).
Before common-stock dividends are paid, the bottom line profit shown on an organization's income statement is known as net income. An alternative to net income is free cash flow (FCF), which is another measure of profitability.
Thus, ROE is a financial measuring tool for any business.
For more information on ROE, refer to the given link:
brainly.com/question/27821130
#SPJ4
Answer: Variable cost of production
Explanation:
Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.
Variable cost is the cost that covers through the production phase and changes as production is being finalized. This cost changes price variables depending on how much the company produces. The rise and fall of production determines their final position in pricing. Packaging and the various material cost are examples of variable cost.
