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sweet [91]
3 years ago
5

Using the following information, prepare a vertical analysis of two years' income statements. Fees Earned is $153,500 for Year 2

and $149,700 for Year 1. Operating expenses are $122,800 for Year 2 and $127,245 for Year 1. Which of the following statements are true?
A. Operating income has decreased as a percentage of revenue.
B. Operating income has increased as a percentage of revenue.
C. None of these choices are correct.
D. Operating expenses have increased as a percentage of revenue.
Business
1 answer:
ValentinkaMS [17]3 years ago
7 0

Answer:

(B) Operating income has increased as a percentage of revenue

Explanation:

Conducting a vertical analysis,

Operating income (year 1) = Fees earned, less operating expenses

= 149,700 - 127,245 = $22,455

Therefore operating income as a percentage of revenue = 22,455/149,700 = 15%.

Operating income (year 2) = 153,500 - 122,800 = $30,700

Therefore operating income as a percentage of revenue = 30,700/153,500 = 20%.

Therefore, operating income as a percentage of revenue increased from year 1 to year 2.

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Giant Equipment Ltd. Is considering two projects to invest next year. Both projects have the same start-up costs. Project A will
klemol [59]

Answer: A.) Project A, because it has a higher present value than project B.

B.) Project B

Explanation:

Particulars --------- project A ----------- project B

Annual cash flow -- 42000 ------------ 48000

Interest rate --------- 12% ----------------- 12%

Number of years ---- 8 -------------------- 7

Calculating the present value of both projects using a financial calculator :

At 12% rate of return :

PV of project A = $233,677.77

PV of project B = $219,060.31

B.) At 14% rate of return:

PV of project A = $222,108.80

PV of project B = $234,656.04

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3 years ago
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3 years ago
Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale?
Akimi4 [234]

Under a C) exclusive right to sell, the listing firm will earn a commission if the property sells during the listing period, even if it's a licensee from another firm or the seller who finds the buyer.

Promoting dealers cooperate with the brokers promoting the home to acquire reimbursement for supporting connect them with the right shoppers. The listing broking will pay the promoting agent a commission for finding a purchaser to shop for the belongings.

In most instances, you don't require a college degree to come to be an actual property agent, but it does help capacity profession task seekers stay aggressive and applicable. A partner or bachelor's degree is more than sufficient—perhaps in the enterprise, finance, or some other related subject.

They realize the nearby actual estate market, look into and appraise homes to decide honest marketplace costs, write and provide list presentations to offer dealers a document of their findings, and market and stage homes for sale to attract capacity consumers.

The question is incomplete. Please read below to find the missing content.

Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale?

A. Open listing

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3 0
2 years ago
"Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2010. The estimated January 1, 2010, inventory is 6,500 u
iVinArrow [24]

Answer:

Production= 76,500

Explanation:

Giving the following information:

Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2010. The estimated January 1, 2010, inventory is 6,500 units, and the desired December 31, 2010, inventory is 7,000 units.

We need to use the  following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 76,000 + 7,000 - 6,500

Production= 76,500

4 0
3 years ago
Read 2 more answers
Wilbert's Clothing Stores just paid a $1.20 annual dividend and increases its dividend by 2.5 percent annually. You would like t
astraxan [27]

Answer:

For 100 shares, the mount that should be paid = $1766

Explanation:

We have to calculate the price of the stock in the 4th year because the investor cannot afford the stock in another 3 years.

Price of the stock = Do + g / ke - g

Dividend in current year = $1.2

Dividend after 1 year = 1.2 +2.5% (1.2)= 1.23

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                            =1.29227 + 2.5%(1.29227)/0.075

                            = 17.66

Therefore, for 100 shares, the mount that should be paid = 17.66 * 100 = $1766

5 0
3 years ago
Read 2 more answers
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