1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
riadik2000 [5.3K]
3 years ago
8

The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respecti

vely. Sales revenues are $800,000, net income is $100,000, and net cash flows from operating activities are $150,000. What is Computer World’s cash return on assets?
Business
1 answer:
NikAS [45]3 years ago
5 0

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%

You might be interested in
As of December 31, year 2, a company has an inventory item that was originally purchased for $80 in year 1. The inventory item w
Naily [24]

The net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

<h3>What is net realizable value under IFRS?</h3>

Under the IFRS, inventories should be stated at the lower of cost and net realizable value. The net realizable value equals the selling price less the estimated costs of sale.

<h3>Data and Calculations:</h3>

Inventory purchase cost = $80

Net realizable value in year 1 = $60

Net realizable value in year 2 = $75

Replacement cost = $65

Normal profit margins = 20%

Thus, the net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

Learn more about net realizable value at brainly.com/question/794345

8 0
2 years ago
If the Fed has an interest-rate target, meaning they want to control the interest rate at a specific rate such as 4%, why will a
krek1111 [17]

Answer:

A rise in demand for reserves will shift the demand for reserves curve to the right which will cause a rise in interest rates. The Fed will then have to act to reduce this interest rate because they would prefer that it remained at the specific rate as mentioned.

To do this they will embark on Open Market Operations aimed at increasing money supply as this will reduce interest rates by increasing the supply of reserves because it will shift the supply curve for reserves to the right. The new equilibrium will be a lower interest rate.

The relevant Open Market Operation will be the buying of bonds from the public.

6 0
2 years ago
Consider the following information for a simultaneous move game: Two discount stores (megastore and superstore) are interested i
wariber [46]

Answer: a) For both stores to advertise.

Explanation: Superstore should advertise its products because the strategy provides a better payoff than the option of not advertising. The same situation exists for Megastore. Thus, the scenario when both companies advertise their products is a Nash equilibrium.

4 0
3 years ago
Read 2 more answers
Ivanhoe Co. reports net income of $78,000. Partner salary allowances are Pitts $10,000, Filbert $3,000, and Witten $5,000. Indic
xxTIMURxx [149]

Answer:

52 : 22 : 26 getting $31,200, $13,200,  and $15,600

Explanation:

In a partnership, the salaries earned by the partners are treated like salaries paid to third parties. As such, these salaries are deducted from the net income of the partnership before the sharing formula is applied to determine what each partner gets.

Total salaries paid = $10,000 + $3,000 + $5,000

= $18,000

Net profit to be shared = $78,000 - $18,000 = $60,000

Total of all ratios = 52 + 22 + 26 = 100

Division of net income to each partner is as follows;

Partner 1 = (52/100) × $60,000 =$31,200

Partner 2 = (22/100) × $60,000 =$13,200

Partner 3 = (26/100) × $60,000 =$15,600

Hence the partners share at the ratio 52 : 22 : 26 getting $31,200, $13,200,  and $15,600

7 0
3 years ago
Bengal Co. provides the following sales forecast for the next three months: July August September Sales units 5,400 6,100 5,960
AysviL [449]

Answer:

e. 5,540 units.

Explanation:

The computation of the budgeted production units for July month is shown below:

= Sales units + ending inventory units - beginning inventory units

where,

Sales units = 5,400 units

Ending inventory units = 6,100 units × 20% = 1,220 units

And, the beginning inventory units = 1,080 units

So by considering this, the production units is

= $5,400 + 1,220 units - 1,080 units

= 5,540 units

We simply applied the above formulas

5 0
3 years ago
Other questions:
  • What is the name of the monopolist having a declining long-run average cost throughout the market?
    11·1 answer
  • The following selected accounts appear in the adjusted trial balance for Deane Company. Indicate the financial statement on whic
    7·1 answer
  • Research reported in the harvard business review indicates that it is very difficult to build customer loyalty if a firm is sell
    6·1 answer
  • True or False: When refusing an internal request, it is not a good idea to provide an alternative.
    6·2 answers
  • You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage account for the next 9 years. I
    9·2 answers
  • For each of the following accounts indicate the effects of a debit and a credit on the accounts and the normal balance of the ac
    14·1 answer
  • Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more
    15·1 answer
  • During 2020, $890000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurre
    9·1 answer
  • If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new dep
    5·1 answer
  • Assume that you pay $2,849. 84 in state property taxes every year. If your property has an assessed value of $41,302, what is yo
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!