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3 years ago

Paw Locker has the highest Return on Assets in its comparison group. Which of the following could be a secret to its success?

Business

1 answer:

marysya [2.9K]3 years ago

6 0

Answer:

Paw Locker

The secret to its success include:

c. Uses more equity financing than Dog Nation

d. Pays less interest expense than Pooch Mart

e. Uses less debt financing than Hound Smart

Explanation:

a) Data and Calculations:

Company Dog Shoe Hound Paw Pooch

Warehouse Smart Locker Mart

Return on Equity 0.177 0.178 0.177 0.177 0.177

Return on Assets 0.060 0.119 0.112 0.126 0.111

Financial Leverage 3.740 1.501 1.762 1.430 1.639

Return on Sales 0.026 0.065 0.03 0.065 0.057

Asset Turnover 2.338 1.828 2.93 1.927 1.938

b) Paw Locker's Return on assets (ROA) indicates how profitable it is relative to its total assets. Its ROA gives a manager, investor, or analyst an idea as to how efficient the Paw Locker's management is at using the company's assets to generate earnings. As a percentage, Paw Locker's Return on assets is 12.6% and is better than the other companies' ROAs.

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name two different market structures describe how and why they each have a different competitive situation

Mkey [24]

Economists suppose that there are various buyers and sellers in the marketplace which means that competition is everywhere in the market which in turn allowed price to change in reaction to changes in supply and demand. In Economics, there are some market structures that describes how each structure compete in a different competitive situation. Monopoly is one. Monopoly is one of the market structures whereby there is one producer or seller which means, the industry is the single business. This market structure prohibits others from joining the market when a company has a patent or copyright. Oligopoly is another market structure where there are chosen few firms that make up an industry. Both market structures have high barrier entries where competing markets for share are interdependent as the consequence of market forces.

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3 years ago

Read 2 more answers

Jasper makes a $45,000, 90-day, 6.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest

Mice21 [21]

Answer:

The entry should be:

c. Debit Cash $45,731.25; credit Interest Revenue $731.25; credit Notes Receivable $45,000

Explanation:

Jasper makes a cash loan to Clayborn Co.. This is a Notes Receivable of Jasper.

The amount of the loan is $45,000

Tern of the loan is 90-day and interest rate is 6.5%

The interest amount Jasper receives on maturity date:

$45,000 x 6.5% x 90/360 = $731.25

The entry should be:

Debit Cash $45,731.25

Credit Interest Revenue $731.25

Credit Notes Receivable $45,000

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3 years ago

Joanette, Inc., is considering the purchase of a machine that would cost $520,000 and would last for 7 years, at the end of whic

Ostrovityanka [42]

Answer:

The present value of the project is -$10,465.64

Explanation:

The net present value computation for Joannette Inc is set below

In year zero $520,000 and $600 would be incurred on the machine purchase and working capital respectively.

In years 1 to 6 the cash inflow of $112,000 would recorded in respect of reduction in labor costs and other costs

In year 7 ,the cash inflow of $112,000 and recoupment of net working capital would be recorded

NPV=-$526000+($112,000/(1+14%)^1+$112,000/(1+14%)^2+$112,000/(1+14%)^3+$112,000/(1+14%)^4+$112,000/(1+14%)^5+$112,000/(1+14%)^6+$112000+$52000+$6000/(1+14%)^7= ($10,465.64)

Find attached.

Download xlsx

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3 years ago

Elizabeth Proctor sells equipment for $80 000 to Matthew Gamble on 1 July 2013 in exchange for note bearing 12 per cent interest

11111nata11111 [884]

Answer:

Following would be the journal entries in the books of Elizabeth Procter,

On July 1, 2013.

Notes Receivable A/C Dr. $80,000

To Equipment A/C $80,000

(Being equipment sold against notes receivable being recorded)

On June 30, 2014

Notes Receivable A/C Dr. 9600

To Interest Revenue A/C 9600

(Being accrued interest on notes receivable recorded)

On Sept 2014,

Cash A/C Dr. 92,000

To Notes Receivable A/C $80,000

To Interest Receivable A/C $9600

To Interest Revenue A/C $2400

(Being notes receivable and interest received receipt being recorded)

Interest Revenue refers to the income which has been earned as on a date.

Interest Receivable refers to the income which has not been received and which has been outstanding.

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4 years ago

"a perfectly competitive market. The firm will stay in the market in the long run only if the market price is greater than or eq

Lady bird [3.3K]

Answer:

$10 for 200 units which means $0.05 per unit.

Explanation:

The firm will only survive in a perfectly competitive market if its average cost is at minimum level which we can see in the figure. The lowest average cost is $10 for 200 units which means average cost per unit is $0.05 per unit. At this stage the company will be able to produce higher profits because its average cost per unit is at minimum level.

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4 years ago