Answer:
ROA for 20X1= 10%
Profit margin for 20X1= 5%
Assets turnover= 2
ROA for the coming year= 11.25%
Explanation:
Weber corporation return on assets for 20X1 can be calculated as follows
ROA= Net income/Average total assets × 100
= 2,450,000/24,500,000 × 100
= 0.1 × 100
= 10%
The profit margin can be calculated as follows
= Net income/sales × 100
= 2,450,000/49,000,000 × 100
= 0.05 × 100
= 5%
The assets turnover ratio can be calculated as follows
= Sales/Average Total assets
= 49,000,000/24,500,000
= 2
The company ROA if when the turnover rate for next year is2.25 and the profit margin remain unchanged can be calculated as follows
= profit margin × assets turnover ratio
= 5% × 2.25
= 11.25%
Answer:
One thing to clear ab initio is that equilibrium quantity and price are achieved when the demand and supply curves intersect at a point. Therefore, at equilibrium, the demand and supply in quantity are equal.
a) If a technological improvement reduces the cost of product, the equilibrium price will reduce and equilibrium quantity will be equal to the quantity demanded and supplied.
b) If there is a reduction in the number of sellers, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
c) If there is a tax levied on the sellers of apps, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
Explanation:
a) The market is in equilibrium when the supply and demand curves intersect, meaning that the quantity demanded and quantity supplied are equal. The price and quantity at which this intersection occurs are called the equilibrium price and equilibrium quantity respectively. In economics, when quantity supplied equals quantity demanded, an equilibrium situation is achieved, and it is represented by this equation: Qs = Qd; where Qs is quantity supplied and Qd is quantity demanded.
b) Equilibrium price reduces when there is a cost reduction and more supplies are pushed to the market to meet demand.
c) When suppliers leave the market, it means that the market price and demand are no longer attractive and beyond their individual influence. This leads to a reduction in quantity supplied overall.
d) Sales tax increases the price of goods and services, and equilibrium will be achieved when there consumers demand the product with increased price and sellers are willing to produce and sell at such a price.
Answer:
114
Explanation:
For computing the forecast value for the resulting year, we have to apply the formula which is shown below:
= Actual demand × alpha + forecast demand × ( 1- alpha)
= 90 × 0.2 + 120 × (1 - 0.2)
= 18 + 96
= 114
To compute the forecast value we have to deduct the alpha from the forecast demand and multiply the alpha with the actual demand
Answer:
a. banks hold reserves equal to only a fraction of their deposit liabilities.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
In the banking system, fractional reserve banking describes a situation in which a depository financial institution such as a bank, hold an amount of reserves that is typically equal to only a fraction of its deposit liabilities.
Answer:
Assets = Liabilities + Stockholders’ Equity = $286,150
Explanation:
Note: See the attached excel file for the Analysis of the Effect of March 2021 on the Accounting Equation.
From the attached excel file, the following can be obtained:
Assets = Total assets = $193,400 + $23,400 + $20,000 + $44,000 + $5,350 = $286,150
Liabilities = Total liabilities = $18,000 + $20,000 = $38,000
Stockholders’ Equity = Total Stockholders’ Equity = $220,000 + $28,150 = $248,150
Liabilities + Stockholders’ Equity = $38,000 + $248,150 = $286,150
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Stockholders’ Equity = $286,150
