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ehidna [41]
3 years ago
10

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,500 C

ost of goods sold 7,700 Depreciation 445 Earnings before interest and taxes $ 1,355 Interest paid 90 Taxable income $ 1,265 Taxes 443 Net income $ 822 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 230 $ 265 Accounts payable $ 1,460 $ 1,580 Accounts rec. 1,010 910 Long-term debt 1,020 1,345 Inventory 1,680 1,670 Common stock 3,260 2,980 Total $ 2,920 $ 2,845 Retained earnings 600 850 Net fixed assets 3,420 3,910 Total assets $ 6,340 $ 6,755 Total liab. & equity $ 6,340 $ 6,755 What is the return on equity for 2017?
Business
1 answer:
romanna [79]3 years ago
6 0

Answer:

The return on equity for 2017 is 21.46 %

Explanation:

Return on equity measures the return earned on the owners investment in the company.

<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>

                            = $822 / ( $2,980 + $850) × 100

                            = 21.4621 or 21.46 %

Note : That Retained earning is part of Owners Investment.

Conclusion :

The return on equity for 2017 is 21.46 %

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A wealth gap is an economic difference between
kirill115 [55]

Answer:

classes

Explanation:

"The term “wealth gap” refers to the gap in wealth between two groups such as rich and poor people."

6 0
3 years ago
Following ethical standards that have been outlined by the company you work for are___standards(apex)
Mashcka [7]

Answer:

D. organizational

Explanation:

You must focus on both your personal life and profession. Just got the question right on apex.

5 0
3 years ago
You are 20 years old and have completed your BBA and want to pursue further education but you don’t want to take money from your
Dmitrij [34]

Answer:

1. Will you be able to meet your goal at this current saving rate?

  • yes, you will even have some spare money

annual cost of MBA = 400,000 x 2 years = 800,000

monthly salary = 25,000 and you will deposit 12,500

ordinary annuity, 0.8333%, 59 periods (5 years - 1 month) = 75.80535

the future value of your account = 12,500 x 75.80535 = 947,566.88 which is more than the cost of the MBA

2. What percentage of your salary should you save if you want to have exactly your university expenses amount?

  • 42.2138%

800,000 / 75.80535 = 10,553.34

10,553.34 / 25,000 = 0.422138 = 42.2138%

3. How would your answer to part 1 change if the saving account rate changed to 5%?

  • actually you still have more money than what you need even if the interest rate falls to 5%, so you can still take your MBA

monthly salary = 25,000 and you will deposit 12,500

ordinary annuity, 0.41666%, 59 periods (5 years - 1 month) = 66.72805

the future value of your account = 12,500 x 66.72805 = 834,100.63 which is more than the cost of the MBA

4. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose?

  • I would choose the 10.5% semiannual compounding because the effective interest rate is higher.

the effective interest rate of investing at 10% compounded monthly = (1 + 10%/12)¹² - 1 = 10.47%

the effective interest rate of investing at 10.5% compounded semiannually = (1 + 10.5%/2)² - 1 = 10.77%

8 0
3 years ago
John walks into a grocery store and suddenly realizes that the prices on most of his favorite imported products are reduced. Whi
rosijanka [135]
The correct answer is D. I saw other people put this so sorry I don’t really know why I’m sorry
8 0
3 years ago
The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP
skad [1K]

Answer: Nominal GDP 2016 = $7,100

REAL GDP 2016 = $3,700

Nominal GDP 2017 = $4,500

Real GDP 2017 = $4,500

Explanation:

To calculate the Nominal and Real GDPs we use the following formulas,

Nominal GDP = Sum of (Current Year Price x Current Year Quantity)

Real GDP = Sum of (Base Year Price x Current Year Quantity)

We make the assumption that 2017 is the base year so calculating would be,

Nominal GDP, 2016 = [(7 x 600) + (70 x 20) + (300 x 5)]

= $(4200 + 1400 + 1500)

= $7,100

Remember for this we will use 2017 as the base year so we will use 2017 prices

Real GDP, 2016 = [(3 x 600) + (20 x 20) + (300 x 5)]

= $(1800 + 400 + 1500)

= $3,700

Nominal GDP, 2017 = [(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

Now seeing as 2017 is the base year, it's nominal and real GDPs will be the same.

Real GDP, 2017 = $[(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

I included the details part of question so it is clearer.

If you have need any clarification do react or comment.

3 0
3 years ago
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