Answer:
10.85 percent
Explanation:
Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152
Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent
The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
An entrepreneur is a person who manages and organizes a business. They also assume the risk of the business or enterprise.
Answer:
a. Current Assets and Property, Plant, and Equipment
Explanation:
These classify the assets and liabilities in the classified balance sheet into various types Including assets that are divided into Property, Plant, and Equipment, current assets.
Liabilities are similarly divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet that means
Total assets = Total liabilities + shareholder equity
Explanation:
Growth overfishing occurs when fish are harvested at an average size that is smaller than the size that would produce the maximum yield per recruit.
Answer:
B. Income Tax Expenses
Explanation:
The Purpose of the Income Statement in Financial Statement Preparation is to ascertain the profit or loss of a business entity for a particular year. Usually, the format is as follows:
1. Gross Profit= Sales- Cost of Goods sold(Opening Inventory + Purchases- Closing Inventory)
2. Net Profit/ Net Loss = Gross Profit + Other Revenues and Gains - Expenses for the period.
However, income tax expense is only calculated when the net profit has been ascertained. It is usally referred to as net income before tax. It is based on this figure, that the income tax expense is then calculated based on prevailing income tax percentage.
Every other part of the income statement covers a section, but all sections should be calculated and concluded before the income tax expense can be calculated and then subtracted to arrive at the final income tax.
