1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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 %

You might be interested in
jillian wishes to purchase an all-inclusive insurance policy for her new car. If an insurance company quotes her a price of $100
DerKrebs [107]

Ask what <u>coverage </u>is included for $100.

A low cost policy may not be an all-inclusive policy- you always have to look at the details.

6 0
3 years ago
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
Arisa [49]

Answer:

15.4%

Explanation:

Calculation to determine your best guess for the rate of return on the stock

The revised estimate on the rate of return on

the stock would be:

Before

14% = α +[4%*1] + [6%*0.4]

α = 14% - 6.4%

α = 7.6%

With the changes:

7.6% + [5%*1] + [7%*0.4]

= 7.6% + 5% + 2.8%

= 15.4%

Therefore your best guess for the rate of return on the stock will be 15.4%

3 0
3 years ago
A focused low-cost strategy
melamori03 [73]

Answer:

(C). Involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors

Explanation:

The focused low cost strategy is a business level strategy that <u>involves an organization choosing a segment or niche </u>within a large market and then <u>focusing its available resources on serving the needs of customers in that market segment.</u>

It requires the organization to operate at<u> low costs</u> so it can <u>offer prices of its products, lower than what competitors have to offer.</u>

5 0
3 years ago
Production Volume4,000 Units5,000 UnitsDirect Materials$85.80 per unit$85.80 per unitDirect Labor$56.10 per unit$56.10 per unitM
guapka [62]

Answer:

4300 units would cost  $ 898461 or $ 208.9 ≅ $ 209 per unit

Explanation:

Production Volume                   4,000 Units       5,000 Units

Direct Materials                 $85.80 per unit        $85.80 per unit

Direct Labor                     $56.10 per unit             $56.10 per unit

Manufacturing overhead   $73.60 per unit           $62.10 per unit

Total Manufacturing Costs   $ 215.5 per unit         $ 203.7 per unit

The best estimate of the total cost to manufacture 4,300

4000 units at $ 215.5 = $ 862,000

5000 units at $ 203.7= $1018500

9000 units would Cost = $ 862,000+$1018500= $ 1880500

We have taken the total of the two costs and then divided with the number of 9000 units to get an average price as the fixed costs are decreasing as the number of units increase from 4000 to 5000.

4300 units would cost = $ 1880500/ 9000 * 4300= $ 898461 or $ 208.9 ≅

$ 209 per unit

5 0
3 years ago
When analyzing a tv ad, the first thing to keep in mind is:
Elis [28]
A I think, if not then c

3 0
3 years ago
Read 2 more answers
Other questions:
  • One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,
    15·1 answer
  • A creditor who extends credit to a consumer to purchase a consumer good under a written security agreement obtains​ a(n) _____ s
    14·1 answer
  • A(n) ____ model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations perfor
    12·1 answer
  • Marigold Corp. began the year 2022 with $98300 in its Common Stock account and a debit balance in Retained Earnings of $42100. D
    15·1 answer
  • A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will m
    8·1 answer
  • Mattel Inc.’s 2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,0
    11·1 answer
  • The project title should
    14·1 answer
  • Joy and her manager agreed in January that in order to be ready to take on a new group project in June, Joy should complete a cl
    14·1 answer
  • Select the correct answer.
    11·2 answers
  • what is an example of an activity that would be considered a management function for an sec audit client?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!