1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dovator [93]
3 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]3 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

You might be interested in
Company X wants to borrow $10,000,000 floating for 5 years. Company Y wants to borrow $10,000,000 fixed for 5 years. Their exter
CaHeK987 [17]

Answer:

The answer is:

10% fixed rate = Company X's external borrowing (rate);

11.8% fixed rate = Company Y's payment to X (rate);

LIBOR + 1.5% = Company X's payment to Y (rate);

LIBOR + 1.5% = Company Y's external borrowing rate.

Explanation:

First, X will borrow at 10% fixed and Y will borrow at LIBOR + 1.5% floating; both at notational principal of $10 million.

Then; they will enter into a interest swap where:

- X will pay to the swap the interest rate of Libor +1.5% and receive from the swap the fixed interest rate of 11.8%. Thus, X interest income and interest expenses will be: Borrowed at fixed 10% and payment at Libor+1.5% to the swap; Receipt of 11.8% from the Swap=> Net effect: X borrowed at LIBOR - 0.3% ( saving of 0.3%).

- Y will pay to the swap the fixed interest rate 11.8% and receive from the swap LIBOR +1.5%. Thus, Y interest income and interest expenses will be: Borrowed at LIBOR +1.5 and payment 11.8% fixed to the swap; Receipt of Libor + 1.5% from Bthe Swap=> Net effect: Y borrowed at 11.8% fixed ( saving of 0.2%).

4 0
3 years ago
A manufacturing company has a beginning finished goods inventory of $15,400, raw material purchases of $18,800, cost of goods ma
cupoosta [38]

Answer:

$30,900

Explanation:

The beginning finished goods is $15,400

Raw materials purchased is $18,800

The cost of goods manufactured is $34,100

Ending finished goods is $18,600

Therefore the cost of gods can be calculated as follows

= 15,400+34,100-18,600

= 49,500-18,600

= 30,900

Hence the cost of goods sold by the company is $30,900

8 0
3 years ago
Municipal bonds are issued by whom?
posledela
Municipal bonds are debt obligations issued by states, cities, counties and other governmental entities.
6 0
3 years ago
Read 2 more answers
In which form of business is a single individual responsible for the repayment of any debts? proprietorship. corporation. partne
deff fn [24]
<span>In which form of business is a single individual responsible for the repayment of any debts? Proprietorship. In a </span>proprietorship, a sole person owns a business. Because they are the sole owner they are responsible for paying income taxes on profits earned from the business and also repayment of debt. A proprietorship is the simplest business a person can own and operate under. 
6 0
3 years ago
According to the Uniform Commercial Code's rule, when forms are not exchanged, _____. acceptance cannot materially vary from the
Likurg_2 [28]

Answer:

According to the Uniform Commercial Code's rule, when forms are not exchanged, acceptance cannot materially vary from the offer

Explanation:

Then UCC code was established because it was becoming increasingly difficult for companies to transact business across state lines given the various state laws.

The Uniform Commercial Code (UCC) is important since it helps companies in different states to transact with each other by providing a standard legal and contractual framework.

According to the Uniform Commercial Code's rule,  

  • Firm offers (offers to buy or sell goods and promising to keep the offer open for a period of time) are valid without only when it is signed by the offeror.
  • An offer to buy goods for shipment invites acceptance by either prompt shipment or a prompt promise to ship.

Therefore, when forms are not exchanged, acceptance cannot materially vary from the offer.

6 0
3 years ago
Other questions:
  • In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following ord
    10·1 answer
  • Political campaigns that operate at a local level and use face-to-face communication to generate interest and momentum by citize
    7·1 answer
  • The rapid spread of brand communities has been one of the major impacts of social media. the harley davidson owners group is one
    8·1 answer
  • Which of the following indicates that the functional currency of a foreign subsidiary is the US dollar? Group of answer choices
    11·1 answer
  • You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the p
    8·1 answer
  • Alpha Company uses a process cost system. During 2017, Alpha had no beginning work in process inventory. During 2017, Alpha star
    5·1 answer
  • Can someone please help me ! (Wingstop)
    5·1 answer
  • When is it better to file married filing separately?
    14·1 answer
  • Contribution margin is always the same as gross profit margin. is calculated by subtracting total manufacturing costs per unit f
    12·1 answer
  • Differential Analysis for Further Processing
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!