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TEA [102]
2 years ago
5

A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnove

r ratio of .75 and debt of $10,000. What is its sustainable growth rate?
Business
1 answer:
Degger [83]2 years ago
5 0

Answer:

Sustainable Growth Rate: 2.5%

Explanation:

Sustainable growth rate is calculated by multiplying return on equity with retention ratio.

Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.

Growth rate = Retention ratio * return on equity

Retention ratio = 50%

Return on equity = Net profit available for distribution / Opening equity

Return on Equity = (25,000 * 10%) / 50,000

Return on Equity = 5%

Growth Rate = 5% * 50%

Growth Rate = 2.5%

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A worker was just hit by a forklift. The scene is safe and you begin to assess the worker. You see that she is conscious and
user100 [1]

Answer:

Make sure the injury isn't severe. Call 911 and keep making sure they are breathing normally. If not, give them CPR until an ambulance comes. Try not to move them too much and keep them calm.

6 0
2 years ago
PLEASE HELP Question 21(Multiple Choice Worth 5 points) (04.09 LC) A paid position with specific duties, tasks, and responsibili
VikaD [51]

Answer:

Job

Explanation:

A job is any regular and legal activity that one does to earn money.  A job is a responsibility, position, or role assigned to a worker/ employee. Each job has a job description which details what duties the employer expects the employees to perform.

A job refers to employment, either full-time or part-time. It is also a piece of work to be performed.

5 0
3 years ago
Prepaid Insurance $ 3,600 Supplies 3,500 Equipment 18,750 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 21,000 Unearn
SOVA2 [1]

Answer:

1. Depreciation expense 3600

          Accumulated depreciation 3600

2.Unearned rent  330666

                 Rental income 330666

3. Interest expense     2100

               Interest payable               2100

4.Cost of goods manufactured 2640

           Supplies                                2640

5. Insurance expense 2400

              Prepaid insurance  2400

Explanation:

depreciation for the year = 300*12=3600

2. Earned rent was 62000/3*4=330666

3.Interest expense for the year = 525*4=2100

4.opening supplies were 3500 and ending were 860 so (3500-860)=2640 were consumed and 860 will be reported to balance sheet.

5. Opening prepaid insurance was =$3600

Insurance was expense out at the rate of $200 per month = 200*12=$2400

$1200 shall be reported to balance sheet.

8 0
3 years ago
When Pat was talking with his customer about the new accounting system, his customer mentioned that she thought the new system w
amid [387]

Answer:

overcoming reservations

Explanation:

From the question we are informed about Pat who was talking with his customer about the new accounting system, his customer mentioned that she thought the new system was not going to fit into their budget. Pat explained that once her people were trained on it, it would require less time to process orders, and therefore save her money in payroll. The part of the sales presentation demonstrated in this case is an example of overcoming reservations.

Sales presentation can be regarded as sales pitch and it's a selling technique which can be explained as line of talk which is an attempts of persuading someone or something, using a planned sales presentation strategy of particular product/service which is been designed to initiate as well as close a sale of that particular product or service, example of this is overcoming reservations which is a method of persuading customers.

8 0
2 years ago
What is the most likely reason for a company to have an increase in average collection period? a. The company has incurred addit
KengaRu [80]

Option A

the most likely reason for a company to have an increase in average collection period : The company has incurred additional marketing expenses to attract customers

<u>Explanation:</u>

The average collection period is the measure of time it necessitates for a business to obtain prices owed by its customers in words of accounts receivable.  To satisfy their economic commitments, Businesses estimate the average collection period to create assured they possess sufficient money on control.

Most firms intend for an average collection period that is flatter than a retail credit system. They require to be capable to extend serving terms to intrigue customers and be capable to accumulate efficiently as strongly.

4 0
3 years ago
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