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2 years ago

Average Rate of Return

Business

1 answer:

Natali [406]2 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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calculate how much credit created by commercial bank when there is a deposit of 80000, reserve requirement is 8% and withdrawl i

Scrat [10]

Answer:

Amount of credit created by commercial bank = 47,840

Explanation:

Given:

Total deposit in bank = 80,000

Reserve requirement = 8%

Withdrawal = 35%

Find:

Amount of credit created by commercial bank

Computation:

Amount available for withdrawal = Total deposit in bank[1 - Reserve requirement]

Amount available for withdrawal = [80,000][1-8%]

Amount available for withdrawal = 73,600

Amount of withdrawal = Amount available for withdrawal[35%]

Amount of withdrawal = 73,600[35%]

Amount of withdrawal = 25,760

Amount of credit created by commercial bank = 73,600 - 25,760

Amount of credit created by commercial bank = 47,840

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2 years ago

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to:

MArishka [77]

Answer: Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to: " B. Allocate some manufacturing overhead to each individual job ".

Explanation: The steps to implement a manufacturing overhead allocation system are:

1) Obtain a detailed list of all general manufacturing costs.

2) Choose an allocation base (machine hours, direct labor hours) to divide the general factory costs by this allocation base and assign general costs to each production unit.

3) The total allocation base is divided by the units produced to know the amount of manufacturing overhead associated with each unit.

4)"B. Assign some general manufacturing expenses to each individual job." For example, product X requires 2 hours of work to produce it and product Y one hour, higher general manufacturing costs will be assigned to product X

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2 years ago

Which of the following is an example of a financial asset?

Margaret [11]

Answer:

A. cash

Explanation:

cash is used in finance

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1 year ago

Suppose you believe that Delva Corporation's stock price is going to decline from its current level of $82.50 sometime during th

Yakvenalex [24]

Answer:

B. $1,989.75

Explanation:

Cost of option (C) = $510.25

Option selling price (Po) = $85 per share

Share price when selling (Ps) = $60 per share

Number of shares (n) = 100 shares

Since the option allows you to sell shares that are valued at $60 for at $85 each, by selling 100 shares, your total earnings are:

$E=(P_o-P_s)*n\\E=(\$85-\$60*)100\\E=\$2,500$

To find the pre-tax net profit (P), subtract the amount paid for the options from your earnings:

$P=E-C= \$2,500-\$510.25\\P=\$1,989.75$

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2 years ago

On March 1, 2022, Cullumber Company acquired real estate, on which it planned to construct a small office building, by paying $8

11111nata11111 [884]

Answer:

$101,200

Explanation:

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2 years ago