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Nina [5.8K]
3 years ago
14

Refer to the financial statements of Burnaby Mountain Trading Company. The firm's asset turnover ratio for 2017 is _________. (P

lease keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
Business
1 answer:
Aleonysh [2.5K]3 years ago
7 0

Answer:

1.69

Explanation:

asset turnover ratio = net sales / average assets

I looked up the missing information and found the following:

total assets year 1 = $4,000,000

total assets year 2 = $4,300,000

net sales year 2 = $7,000,000

average assets = ($4,000,000 + $4,300,000) / 2 = $4,150,000

asset turnover ratio = $7,000,000 / $4,150,000 = 1.6867 = 1.69

The higher the asset turnover ratio, the more efficient a company is. Therefore, a higher asset turnover ratio is always better although there is no fixed parameter.

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If the capital stock is fixed and something happens to raise the marginal product of capital (MPK) for any given quantity of cap
nadezda [96]

Answer:

D. rise

Explanation:

D. As per the study, marginal product theory suggests that, as the marginal product of capital (MPK) increases even if the capital stock is fixed or unchanged, the real rental will also be changed the same way i.e.  it will rise in this given scenario.

5 0
3 years ago
LO 1.1Which of the following is false regarding strategic planning?
Studentka2010 [4]

Answer:

It is the sole responsibility of supervisors.

Explanation:

Strategic planning includes setting objectives or goals and allocating resocurces to achieve set goals. The goals could be long or short term.

Strategic planning can span for years.

The strategic goals would vary from company to company because the aims and objectives of companies differ.

I hope my answer helps you.

8 0
3 years ago
Price inflation:_______.
expeople1 [14]

Answer:

c. courages investment by increasing the uncertainty about future returns

Explanation:

Inflation refers to the increase in the price level of the goods

The price inflation reflects that there is a rise in the price of the goods and services over a particular period of time lets say for one year. It can arise when the raw material cost during the process of production increased that push the price in upward

It also increased the uncertainty with respect to the future returns through investment

Hence, the correct option is c.

5 0
3 years ago
Manisha could work for another firm making​ $10,000 per​ month, but she decides to open her own gourmet cheese store and pay her
Ghella [55]

Answer:

Manisha's economic profits are - $5,000.

Explanation:

Manisha could work for another firm making​ $10,000 per​ month, but she decides to open her gourmet cheese store and pay herself​ $2,000 per month.

In her first month of​ operations, she spends​ $6,000 on​ cheese, $1,000 on other​ items, and​ $2,500 on rent.

She had a great opening​ month and brought in revenues of​ $14,500.

The economic profits

= Total revenue - (Implicit costs + explicit costs)

= $14,500 - ($10,000 + $6,000 + $1,000 + $2,500)

= $14,500 - $19,500

= - $5,000

4 0
3 years ago
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 50,000 bottles of wine were sold every
grigory [225]

Answer:

$4

$1 and $3

False

Explanation:

As per the data given in the question,

a)

Amount of tax for each bottle is $4 because the sellers are receiving $2 and buyers are paying $6. Therefore,

Amount of the tax on a bottle of wine is $6 - $2 = $4

b)

Burden on the consumer = $6 - $5

= $1

Burden on the seller = $4 - $1

= $3

c)

False, because the tax incidence depends on the flexibility or elasticity  of market.

6 0
3 years ago
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