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Alecsey [184]
4 years ago
13

Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities

$ 30,000 Long-Term Liabilities $ 100,000 Total Liabilities $ 130,000 Current stock price $ 28 Number of Shares Outstanding40000 Use the above info to determine the ratios. Use two decimals and enter percents as percent
Business
1 answer:
marishachu [46]4 years ago
5 0

Answer:

Profit Margin = income / sales

45,000 / 1,000,000 = 4.5%

Return on Assets = income / assets

45,000 / 250,000 = 18%

Assets turnover = sales / assets

1,000,000 / 250,000 = 4

Earning per share: income / shares outstanding

45,000 / 40,000 = 1.125

Price- Earning ratio = market price / EPS

28 / 1.125 = 24,89

Return on Equity = income / equity*

45,000 / 120,000 = 37.5%

Debt to Equity ratio liab / equity

130,000 / 120,000 = 1,08

Explanation:

*solving for equity

Assets = laib + equity

250,000  =  130,000 + equity

equity = 120,000

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The correct answer is the last option: Any company that has stock that outside vendors can buy or sell.

Explanation:

To begin with, a <em>''publicly traded company''</em> is a company whose ownership is organized via shares of stock of the organization which are understand to be freely traded in any stock exchange or in over-the-counter market. Moreover, this type of association is formed within the legal systems of particular states and therefore that they legal limitations resides over the law of the country that they have been created in. To sum up, a public company is a type of organization that can be choose to use depending the legal systems of the country in order to acquire certain advantages when it comes to manage the company.

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2 years ago
Situation 1: A company offers a one-year warranty for the product that it manufactures. A history of warranty claims has been co
mr_godi [17]

Answer:

Please find the detailed explanation below.

Situation 1 and 2 have disclosure while situation 3 does not require any disclosure.

Explanation:

Situation 1. Accrual. The one-year warranty has created what is known as contingent liability. Contingent liability is a type of liability that is dependent on the outcome of some specific actions which has happened in the past. The eventual liability may or may not happen. But since the probable claim from the one-year warranty has been determined, it should be disclosed. But if the claim cannot be determined, it shouldn't be disclosed.

Situation 2. Since this contract happened before the issuance of financial statement and the amount of loss from this contract can be reasonably estimated or determined, then it must be disclosed and the likely amount must also be disclosed. This disclosure will be under 'note to the financial statement'.

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4 0
4 years ago
An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equ
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Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

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