Question 7 of 10

A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 4. 17 and an equity multiplier of

spayn [35]

A corporation has $ $640,000$ in sales, $ $23,000$ in net profit after taxes, a $4.17$ total asset turnover, and a $1.67$ equity multiplier. response is $9%.$ %

The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). The better a corporation is at turning its equity financing into profits, the higher its ROE.

Return on Asset is expressed as a percentage of the total return an organization generates in relation to its total assets. The return on asset calculation formula is.

Return on assets is calculated as Net Profit After Taxes by Asset Turnover and Sales multiplied by $100$ . For example, Return on Assets is $ $23,000*2.5$ by $640000*100$ Return on Assets is $ $57,500/640000*100$ Return

Learn more about equity here.

brainly.com/question/28202983

#SPJ4

8 0

1 year ago

Suppose that capital becomes more productive. What would we expect to happen? Choose one:

Nata [24]

Answer:

D. The equilibrium interest rate and amount invested would both increase

Explanation:

Investment spending is a significant classification of actual GDP. Not exclusively is it the most unstable piece of real GDP; however, speculation spending on physical capital is additionally a significant supporter of financial development. Things being what they are, if a firm needs to construct another processing plant, where does it get the assets to assemble it? The investment of loanable assets depends on investment funds. The interest in loanable assets depends on getting.

6 0

3 years ago

In the manufacture of 9,400 units of a product, direct materials cost incurred was $174,900, direct labor cost incurred was $109

stiv31 [10]

Answer:

$154,000

Explanation:

Calculation to determine the total conversion cost

Using this formula

Total conversion cost=Direct labor cost incurred

+Applied factory overhead

Let plug in the formula

Total conversion cost =$109,800+$44,200

Total conversion cost=$154,000

Therefore Total conversion cost is $154,000

5 0

3 years ago

BigBox and CheapStore are the only two firms in a market. Each firm must decide whether to price high or price low. The payoffs

Papessa [141]

I would need to see the chart but if BigBox has more, it would be they are the dominant, and same for CheapStore. basically, whoever has more revenue (money production) will have the dominant strategy.

8 0

2 years ago

Fair Value Journal Entries, Trading Investments Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The c

Inessa05 [86]

Answer:

Trading Investments Jets Bancorp Inc.

Journal Entries - Fair Value:

Dec. 31, 20Y3:

Debit Credit

Investment in Dolphins Inc. $3,200

Gain (Loss) on Investments $3,200

To record the investment's fair value and gain.

Gain (Loss) on Investments $4,200

Investment in Marino Company $4,200

To record the investment's fair value and loss.

Gain (Loss) on Investments $1,200

Investment in Namath Company $1,200

To record the investment's fair value and loss.

May 10, 20Y4:

Investment in Jets Bancorp Inc $24,000

Brokerage Commission $150

Cash Account $24,150

To record purchase of 1,000 shares at $24 per share plus commission.

Explanation:

a) Trading securities are a category of securities that include both debt securities and equity securities. An entity holds them with the intention to sell in the short-term for a profit that arises from increases in the prices of the securities.

b) Fair value is an asset's selling price, which is freely agreed upon between a willing and knowledgeable buyer and seller. But, for Debt Securities, it represents the market value of the investments at any point in time when financial statements are being prepared. Investments that are held for trading purposes are required to be accounted for, using the fair value method. This implies that the gains and losses, both realized and unrealized must be accounted for whenever financial statements are bing prepared or when the investment is disposed of.

3 0

3 years ago