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Flura [38]
3 years ago
15

Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 30,700 $ 11

5,000 Sales 336,000 2,370,000 Total assets 485,000 919,000 Total debt 229,000 465,000 Stockholders' equity 256,000 454,000 a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
Business
1 answer:
BlackZzzverrR [31]3 years ago
6 0

Answer:

<u>Return on equity (ROE) for Firm A</u>   = 11.99%

<u>Return on equity (ROE) for Firm B</u>   = 25.33%

Explanation:

Return on equity (ROE) = net income by shareholders' equity

<u>Return on equity (ROE) for Firm A </u>

30,700/256,000 x 100= 11.99%

<u>Return on equity (ROE) for Firm A </u>

115,000/454,000x 100 = 25.33%

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The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organiz
LenKa [72]

Answer: D. Common stock

Explanation:

Common stock refers to the security which represents ownership in a corporation.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.

3 0
2 years ago
Last year a small accounting firm paid each of its five clerks $25,000; two junior accountants received $60,000 each; and the fi
djverab [1.8K]

Answer:

the firm's average salary increased by 40%

Explanation:

the average salary for last year = [(5 x $25,000) + (2 x $60,000) + $255,000] / 6 = $500,000 / 6 = $83,333.33

this year's average salary = [(5 x $25,000) + (2 x $60,000) + $455,000] / 6 = $700,000 / 6 = $116,666.67

this means that the average salary has increased by = [($116,666.67 - $83,333.33) / $83,333.33] x 100 = 40%

3 0
3 years ago
Suppose Jack Roper pays his employees $19.25 per hour at his organic rice packaging plant. He does this even though the market r
nydimaria [60]

Answer:

In my opinion Jack believes in the efficiency wage theory. This theory states that an increase in wages will increase labor productivity, lower staff turnover and attract the best possible employees.

So when Jack increases his employees' salaries, their increased productivity will recoup the extra labor costs. At the end, Jack believes his profit will increase because of the higher wages he pays.

8 0
3 years ago
A country in which most economic decisions are made by individuals or private companies has a system that falls in the main cate
astraxan [27]

Answer: Market Economy

Explanation:

A country in which the economic decisions are majorly controlled by individuals or private companies is a market economy.

A market economy is an economic system where there is very little government interference which is in the form of regulations, the economy is controlled mainly by private individuals and production is determined by the forces of demand and supply.

4 0
3 years ago
You invest $1,000 now, at an annual simple interest rate of 6%. What is the effective rate of interest in the fifth year of your
Delvig [45]

Answer:

The effective rate of interest in the fifth year is 6.15%

Explanation:

Mathematically, the effective rate of interest can be calculated as follows;

Reff = (1 + r/y)^y - 1

where;

r is the interest rate = 6% = 6/100 = 0.06

y is the period = 5 years

Substituting these values;

Reff = (1 + 0.06/5)^5 - 1

Reff = (1 + 0.012)^5 - 1

Reff = 1.012^5 - 1

Reff = 1.061457 - 1

Reff = 0.0615 which is 6.15%

3 0
3 years ago
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