Answer:
37.5%
Explanation:
In this question, we are asked to calculate the Value of the cash return on asset
We use a mathematical representation to do this. Let’s get the formula.
Mathematically:
Cash return on assets = operating cash flows/average total assets
According to the question, the operating cash flow has a value of $150,000. The average total assists have a value of (350,000+450,000)/2 = 800,000/2 = $400,000
We input these values into the formula:
Cash return on assets = 150,000/400,000 = 37.5%
Venture capitalists provide funds to small businesses, especially young ones, with a good amount of growth potential. They tend to get a decent share of ownership in the company in exchange of the investment that they made, and can serve as a very important support for the small business.
Answer:
passive income if taxable income is negative;active income if taxable income is positive.
Answer: $120,000
Explanation:
The cost, that would be allocated in the first-stage allocation to the Fabricating activity cost pool will be:
Wages and salaries = 10% × $420,000 = $42000
Depreciation = 5% × $240000 = $12000
Occupancy = 30% × $220,000 = $66,000
Therefore, the fabricating cost will be:
= $42000 + $12000 + $66000
= $120,000