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Dovator [93]
2 years ago
9

Cullumber Company reports the following information (in millions) during a recent year: net sales, $12,105.0; net earnings, $355

.0; total assets, ending, $5,825.0; and total assets, beginning, $4,090.0. Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin.
Business
1 answer:
Alex17521 [72]2 years ago
3 0

Answer:

1. 0.07161

2. 2.43

3. 0.02932

Explanation:

1. The computation of the return on total assets is shown below:

Return on assets = (Net income) ÷ (average of total assets)

where,

Net income is $355

Average total assets = (Beginning total assets + ending total assets) ÷ 2

                                   = ($4,090 + $5,825) ÷ 2

                                   = $4,957.50

Now put these values to the above formula  

So, the ratio would equal to

= $355 ÷ $4,957.50

= 0.07161

2. The computation of the assets turnover is shown below:

Total asset turnover = (Net Sales ÷  average of total assets)

                                   = ($12,105 ÷ $4,957.50)

                                   = 2.43

3. The computation of the profit margin is shown below:

= (Net earnings ÷ net sales) × 100

= ($355 ÷ $12,105) × 100

= 0.02932

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umka21 [38]

Answer:

It is more profitable to raise the selling price by $2.

Explanation:

To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>

Sales revenue= selling price * number of units

<u>Current:</u>

Sales revenue= 5.5*2,200= $12,100

<u>Proposal:</u>

Sales revenue= 7.5*1,800= $13,500

It is more profitable to raise the selling price by $2.

7 0
3 years ago
Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg
nordsb [41]

Answer:

The correct answer is $12,400.

Explanation:

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

We can calculate the pension expense by using following formula:

Pension expense =  Interest cost + Service cost - Expected return on plan assets.

Where, Interest cost = $6,400

service cost = $17,000

Expected return on plan assets = $11,000

So, by putting the value, we get

Pension expense = $6,400 + $17,000 - $11,000 = $12,400

Hence, Journal entry for the following are as follows:

Pension Expense A/c Dr.   $12,400

To Cash                                      $12,400

8 0
3 years ago
Dennis Galvan works as a campaigner at Green Earth, an environmental organization. Every month, his organization arranges a team
mote1985 [20]

Answer:

social environment

Explanation:

The activities performed as mentioned in the problem is termed as employee engagement activities. Reason behind doing this to increase social interaction which generates understanding between employee. it strengthen social and emotional connection of people and hence employee feel more satisfied towards their work and organization. This is done via increases healthy social engagement and hence social environment is correct answer

7 0
3 years ago
A total of $44,000 is invested in two municipal bonds that pay 5.75% and 7.25% simple interest. The investor wants an annual int
Nataliya [291]

Answer:

Amount invested at 5.75% = $30,000

Amount invested at 7.25% = $14,000

Explanation:

Let the amount invested

at 5.75% = X

at 7.25% = Y

According to given condition

X + Y = $44,000 ( Eq 1)

and

0.0575X + 0.0725Y = $2,740 ( Eq 2)

By multiplying ( Eq 1) with 0.0575

0.0575X + 0.0575Y = $2,530 ( Eq 3)

By subtracting ( Eq 3) from ( Eq 2)

0.0725Y - 0.0575Y = $2,740 - $2,530

0.015Y = 210

Y = 210 / 0.015

Y = $14,000

X + $14,000 = $44,000

X = $44,000 - $14,000

X = $30,000

Check:

$30,000 x 5.75% + $14,000 x 7.25% = $2,740

$2,740 = $2,740

5 0
3 years ago
Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if t
sleet_krkn [62]

Answer:

C. when they are incurred, whether or not cash is paid.

Explanation:

In accrual accounting, expenses are recorded in the moment they are incurred, even if they have not been paid for.

In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

One common example of an accrued expense is accrued wages:

Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.

4 0
3 years ago
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