Answer:
C. freely operating economy in which all markets are perfectly competitive.
Explanation:
When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.
- In such a free economy, demand for goods and services are not controlled.
- The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not.
- It is better to make such market competitive without interfering into how resources are managed and dispensed.
Answer:
$187,975
Explanation:
Calculation to determine The cash payments expected for Finch Company in the month of April
Cash Payment= 3/4 *$198,500 (May's manufacturing cost)+1/4 *$156,400 (April's manufacturing cost received in May)
Cash Payment=$148,875+$39,100
Cash Payment=$187,975
The The cash payments expected for Finch Company in the month of April are $187,975
Job Specification.
Definition of Job Specification: a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands.
Answer:
$114,000
Explanation:
The computation of the residual income is shown below:
As we know that
Residual Income = Net operating Income - Average Operating assets × Required rate of return
where,
Net Operating Income is
= Sales Revenue - Variable Costs - Fixed Costs
= $500,000 - $300,000 - $50,000
= $150,000
And,
Average operating Assets is
= Net Operating Income ÷ Return on Investment
= $150,000 ÷ 0.25
= $600,000
So, the residual income is
= $150,000 - $600,000 × 6%
= $150,000 - $36,000
= $114,000
Answer: 16.55%
Explanation:
Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.
From the information given, firstly, we calculate the return on equity. This will be:
= Growth rate /(1 + Growth rate) × Retention ratio
= 8% / (1 + 8%) × 46%
= 0.08/(1 + 0.08) × 0.46
= 0.08/1.08 × 0.46
= 0.08/0.4968
= 0.1610
= 16.10%
Return on equity, ROE = 16.10%
We then calculate the profit margin. This will be:
= ROE / Asset turnover × Equity Multiplier
where,
Equity Multiplier = 1 + debt-equity ratio
= 1 + 0.37 = 1.37
Profit margin = ROE / Asset turnover × Equity Multiplier
= 16.10% / {(1/1.41) × 1.37}
= 16.10% / 0.71 × 1.37
= 0.1610 / 0.9727
= 0.1655
Profit margin = 16.55%
