Profit margin of green giant = 8% = 0.08
Dividend payout ratio = 67% = 0.67
Total turnover = 1.3 times
Equality multiplier = 1.6 times
First calculate the return of equity = profit margin x turnover x equality
multiplier
Return of Equity = 0.08 x 1.3 x 1.6 = 0.1664
Now the sustainable rate of growth = Return of Equity x (1 - Dividend payout ratio)
Sustainable rate = 0.1664 x (1 - 0.67) = 0.1664 x 0.33 = 0.055
Sustainable rate of growth = 5.5%
Answer:
Current Ratio
Explanation:
Current ratio is the proportion of current assets to current liabilities. It is one of the liquidity ratios that measures the capability of an organization to meet it short term obligations which is represented by current liabilities such as accounts payable and short term loans.
These liabilities are met with current assets such as cash and accounts receivables. Ideal current ratio is 2:1 that implies that the organization has enough currents assets to meet its short term liabilities as well as maintain adequate liquidity.
Answer:
Product by value of analysis.
Explanation:
product in descending order of their individual dollar contribution to the firm, as well as the total annual dollar contribution of the product.
Answer:
a. $181,000
Explanation:
The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.
Calculation of Net Income will thus be as follows :
Revenue Received $260,000
Unearned Revenue($65,000-$35,000) $30,000
Total Revenue $290,000
Less Expenses :
Expenses ($85,000+$26,000-$28,000) $83,000
Depreciation $16,000
Net Income $181,000
Answer:
Supplier bills payable in 30 days
Explanation:
This is current assets
- Certificates of deposit that mature in six months
- Cash
- Customer receivables
The Supplier bills payable in 30 days is a current liability
