Answer:
Sustainable Growth Rate: 2.5%
Explanation:
Sustainable growth rate is calculated by multiplying return on equity with retention ratio.
Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.
Growth rate = Retention ratio * return on equity
Retention ratio = 50%
Return on equity = Net profit available for distribution / Opening equity
Return on Equity = (25,000 * 10%) / 50,000
Return on Equity = 5%
Growth Rate = 5% * 50%
Growth Rate = 2.5%
The actions of Mulally in doing the above can be said to be part of his <u>Strategy </u>for <u>Ford</u>.
<h3>Actions by John Mulally.</h3>
- Were done to turn Ford Motors around so that it would be successful again.
- Involved closing down plants and increasing labor productivity.
John Mulally was the CEO of Ford Motors and when he took over, Ford needed a turnaround in their fortunes. He engineered a series of changes to ensure that Ford would be competitive again.
In conclusion, this was his strategy.
Find out more on labor productivity at brainly.com/question/6430277.
Answer:
Beckman noncontrolling interest in subsidiary income $10,520
Calvin Machine (net of accumulated depreciation) $71,200
Explanation:
To calculate noncontrolling interest in subsidiary's income;
Revenue $65,550
Expenses $39,250 (29,250 + $6,800 + $3,200)
Net Income $26,300
Noncontrolling percentage = 40%
NonControlling Income = $10,520
Depreciation of Machine = 
= 6,800 per annum
Amortization of trade secrets = 
Amortization of trade secrets = 
= 3,200
Answer:
A. $80
B. $795
C. $0
Explanation:
Only expenses that can be directly attributed to the business are deductible.
Personal expenses will not be deductible.
A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.
B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.
C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.
C. Company cite :)
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