The way a bank determines the balance on which you calculate your interest is known as an annual percentage rate. In reality, the banks take the annual percentage rate and charge a person on their daily interest rate. You can find out the daily rate by taking the APR, annual percentage rate, and divide it by the number of days in a year. The correct answer is D.
Answer:
Current year cost of goods sold is $181,800.
Explanation:
The current year cost of goods sold is calculated as follows:
Current year cost of goods sold = Last year cost of goods sold + Current year change
= $180,000 + ($180,000 * 1%)
= $180,000 + $1,800
= $181,800
Therefore, current year cost of goods sold is $181,800.
Answer:
Incremental cash flow= $1,369.863~ $1,370
Explanation:
In accrual accounting, accounts receivable gives a measure of revenue that a business has earned.
Given the annual revenue as $25,000. To get the daily revenue
Daily revenue= Annual revenue/ 365
Daily revenue= 25,000/365
Daily revenue= $68.493
Customers are expected to pay within 20 days, so for every 20 days
Incremental cash flow= 20 days* 68.493
Incremental cash flow= $1,369.863~ $1,370
Answer:
1. 8%
2. 1.5
3. 12%
Explanation:
1) Computation for the margin
Using this formula
Margin = Net operating income/Sales
Let plug in the formula
Margin= 600000/7500000
Margin = 8%
2) Computation for the turnover
Using this formula
Turnover = Sales/average operating assets
Let plug in the formula
Turnover = 7500000/5000000
Turnover= 1.5
3) Computation for the return on investment (ROI
ROI = 8*1.5
ROI= 12%
