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Svetllana [295]
3 years ago
8

Average Rate of Return

Business
1 answer:
Natali [406]3 years ago
8 0

Answer:

22%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Average net income ÷ average investment

where,  

Average net income is

= Total income ÷ number of years

= $148,500 ÷ 5 years

= $29,700

And, the average investment would be

= (Cost - salvage value) ÷ 2

= ($300,000 - $30,000) ÷ 2

= $270,000 ÷ 2

= $135,000

Now put these values to the above formula  

So, the rate would equal to

= $29,700 ÷ $135,000

= 22%

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Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
Which of the following is a potential operating instrument for the central​ bank? A. The M1 money supply B. The monetary base C.
Angelina_Jolie [31]

Answer:

The correct answer is B. The monetary base.

Explanation:

The Monetary Base is made up of all legal money in circulation (that is, bills and coins), added to the reserves of commercial banks in the central bank. In other words, it is the legal money issued by the Central Bank of a country and can be in the hands of the public, or else in the cashier of the different commercial banks that the financial sector of the country. The monetary base is monitored by the central bank and constitutes its main way to control the money supply. Also another way to define the monetary base is that they constitute the monetary liabilities of the central bank.

7 0
2 years ago
A more professional focus of running events started to take place during the late 1800s. The catalyst for such a professional fo
UkoKoshka [18]

Answer: D. a desire to increase profits

Explanation:

During the late 1800s, a more professional focus of running events began to take place. The main reason for such a professional focus emphasis occurred due to a desire to increase profits.

It was realized that having a more professional focus on running events could bring about more funds and also bring about more intersted spectators.

3 0
3 years ago
Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year. In Janua
Rina8888 [55]

Answer:

$60,000

Explanation:

Since Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year, and in January of the prior year, Bailey recorded insurance expense of $240,000 for the cash purchase of a four-year insurance policy.

Bailey should report the insurance transaction in the current year's financial statements of an amortization of the insurance expense over the four year period, and take account the portion that pertains to the current year.

Therefore = $240,000 / 4 years = $60,000 per year

3 0
3 years ago
Read 2 more answers
Sammy's Pizza had the following financial information for the year as follows ($ in millions):
daser333 [38]

Answer:

Net Cash flow from Investing activities -$1,900

Explanation:

Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

Cash flow from Investing activities  

Purchase equipment - $5,400

Sale of land $3,500

Net Cash flow from Investing activities -$1,900

All other transactions are related to the operating and financing activities. Hence ignored it

7 0
3 years ago
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