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3 years ago

Which of the following ratios use de-levered net income?

Business

1 answer:

ivann1987 [24]3 years ago

3 0

Answer:

c. Return on Assets

Explanation:

The net income usually has an impact of interest expense since interest expense is deducted from earnings before interest and tax in arriving at net income.

Hence, in order to take out the impact interest expense when computing return on assets, an adjusted net income known as de-levered net income is computed using the below formula:

Net Income + (1-t)xInterestExpense

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3 years ago

Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 5,900 units are p

Fantom [35]

Answer:

Given:

Sales budget = 5,900 units

Variable selling and administrative expense = $11.20 per unit

Fixed selling and administrative expense = $131,570 per month

Depreciation = $16,520 per month

Therefore, we'll compute cash disbursements for selling and administrative expenses using the following formula:

<em>Cash disbursements = Variable selling and administrative expense × Sales budget + Fixed selling and administrative expense - Depreciation</em>

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<u><em>Cash disbursements = $181,130</em></u>

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3 years ago

94. Averaging the deviations from the mean for a portfolio of securities will: A. compute the standard deviation. B. compute the

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Answer: C. equal zero

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Some deviations will be positive, others will be negative.

When these deviations are added together, the negative deviations will cancel out the positive deviations which will lead to the average deviations being 0.

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3 years ago

Mike sells small-business health insurance programs, working on straight commission. Closing the sale is an extremely stressful

Harlamova29_29 [7]

If closing the sale is an extremely stressful point for him. If he does not close the sale, the outcome will be he will generate no income.

<h3>What is income?</h3>

Income can be defined as a the cash receive from the sales of goods and services.

Based on the given scenario in a situation were Mike did not close the sale for the day this will tend to mean that he will generate no revenue or income reason being that closing the sale will enables him to generate income.

Therefore the outcome will be he will generate no income.

Learn more about income here:brainly.com/question/25745683

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2 years ago