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ANEK [815]
3 years ago
10

A company has annual sales of $160 million, a net profit margin of 4%, and total assets of $90 million. It carries $10 million i

n accounts receivable, $25 million in inventory, has $55 million in total debt, and 5 million shares of common stock outstanding. Based on this information, the company's return on equity (ROE) is
Business
1 answer:
sasho [114]3 years ago
4 0

Answer:

18.29%

Explanation:

Return on Equity is the net profit available for equity/ Total equity value.

Total equity = Total assets - Total debt

= $90 million - $55 million = $35 million

Earnings for equity = Annual sales \times net profit margin 4%

= $160 million \times 4% = 6.4 million

Therefore, return on equity = \frac{Net\ profit\ for\ equity}{Total\ value\ of\ equity}

= \frac{6.4\ million}{35\ million} \times 100 = 18.2857

Therefore, ROE = 18.29%

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Corruption, Inc., uses process costing, they have overstated the percentage of work completed with respect to conversion cost on
forsale [732]

Answer:

(1) understated

(2) understaded

(3) unchanged

Explanation:

The amount of equivalent units will be higher as the ending inventory of work in process will be above of what it should be.

As we have more equivalent untis the cost per equivalent unit will be lower:

\frac{cost}{equivalent \:units}

So both, conversion cost and total cost per equivalent untis will e lower than it should be as are getting divided over a larger amount.

the physical amount of units worked during the month and those which are complete will not be affected as the percentage of completion is an accounting tool to calculate the cost not to count the amount of units in possession

5 0
3 years ago
Emily Casper earns a weekly salary of $785. How much will she make after four weeks?
OleMash [197]

Answer:

$3140

Explanation:

It is given that,

Weekly salary of Emily Casper is $785. We need to find her earning after 4 weeks. It is a type of question based on the unitary method.

1 week = $785

4 week = 4 × $785

= $3140

Hence, her salary after 4 weeks is $3140.

7 0
3 years ago
A random experiment with three outcomes has been repeated 50 times, and it was learned that E1 occurred 20 times, E2 occurred 13
enot [183]

Answer:

P(E1)=\frac{20}{50}=0.4

P(E2)=\frac{13}{50}=0.26

P(E3)=\frac{13}{50}=0.34

I used the relative frequency method

Explanation:

To solve this question we can use the relative frequency to find out each probability. The relative frequency is the ratio of the occurrence of each event and the total number of outcomes.

Here the experiment has been repeated 50 times, so that is the total number of outcomes and the denominator. There are 3 possible events E1, E2, and E3, so we can calculate the ratios to get the probabilities

Event E1 occurred 20 times of the 50: P(E1)=\frac{20}{50}

Event E2 occurred 13 times of the 50: P(E2)=\frac{13}{50}

Event E3 occurred 17 times of the 50: P(E3)=\frac{17}{50}

8 0
4 years ago
Suppose that Billy McGee owns the Internet domain www.ironmaiden.com. Iron Maiden, the legendary British heavy metal band, was g
Eduardwww [97]

Answer:

B

Explanation:

Coase theorem states that in a situation of conflicting property right . the trading parties should be able to arrive at a mutually benefiting term that should cover the the  cost and other underlying value of the property involved.

In the scenario above , for  Billy McGee to retain the domain name as the WIPO has already given the right to Iron maiden , he will have to pay iron maiden more than the value to iron maiden and less than the value to him so that the two can mutually benefit from the transaction

5 0
3 years ago
What are some examples of information you might include in the current status of a career plan? Check all that apply.
kolbaska11 [484]

answer:

a: classes you have taken

b: job or volunteer experience

e: software skills

g: leadership skills

4 0
3 years ago
Read 2 more answers
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