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Sonja [21]
3 years ago
10

Bonner Corp.'s sales last year were $345,000, and its year-end total assets were $355,000. The average firm in the industry has

a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Use the year-end balance in your calculations. Select the correct answer. a. $211,325 b. $211,175 c. $211,101 d. $211,250 e. $211,026
Business
1 answer:
MAXImum [283]3 years ago
3 0

Answer:

  d.  $211,250

Explanation:

The TATO is the ratio of sales to assets:

  TATO = sales/assets

Filling in the desired numbers, we can find the desired level of assets:

  2.4 = 345,000/assets

  assets = 345,000/2.4 = 143,750

Starting with assets of 355,000 the reduction necessary to bring assets down to 143,750 is ...

  $355,000 -143,750 = $211,250 . . . . matches choice D

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Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Ye
Tamiku [17]

Answer:

$233 million

Explanation:

                      Statement of cash flow

              Cash flow from operating activity

Particulars                                                 Amount ($ in millions)

Net income                                                 113

<em>Adjustment in net income</em>

Depreciation                                   72  

Amortization                                    5

Loss on sale of land                        3

Decrease account receivable       14  

Decrease inventory                       12

Increase account payable             8

Decrease salary payable              (8)

Increase interest payable              7

Increase income tax payable        7           <u>120</u>

Net cash flow from operating activity     <u>233</u>

6 0
3 years ago
Product costs consist of all of the following except:_______
alexdok [17]

Answer: Dividends

Explanation:

What is Product costs ?

The cost incurred to produce a product are referred to as product  cost. Direct labor, direct materials, consumable production supplies, and factory overhead all are included in these prices. The cost of the labor necessary to provide a service to a customer can also be considered when calculating product cost. In the latter scenario, all cost involved with a service, such as compensation, payroll taxes, and employee benefits, ought to be included in the product cost.

Since product cost contains the amount of effort that is required by both GAAP and IFRS, it is included in the financial statements. When deciding on short-term production and sale-price strategies, however, managers may alter product costs to eliminate the overhead component.

To learn more about Product cost checkout the link below : https://brainly.ph/question/3079032

8 0
2 years ago
1. Almost half the jobs in this country come from small businesses.<br> True<br> False
Dmitrij [34]

Answer:

True

Explanation:

Small businesses make up:

99.7 percent of U.S. employer firms,

64 percent of net new private-sector

jobs,

49.2 percent of private-sector

employment,

42.9 percent of private-sector payroll,

46 percent of private-sector output,

43 percent of high-tech employment,

98 percent of firms exporting goods,

and

33 percent of exporting value.

3 0
3 years ago
The technical help desk completes requests in the order in which they are received. On Monday requests were made by seven employ
Valentin [98]

Answer:

A. Heidi submitted her request after Fay

Explanation:

Bonnie before Chac

Doug after Chad and Bonnie

Eileen before Chad and Doug

Fay before Eileen

Greg after Bonnie

Heidi after Greg

if Eileen's request was completed before Greg's:

lets call Fay's request A, Heidi's request B, Eileen's request C and Doug's request D

A before C

C before D

B after D

therefore, B after A and C

7 0
3 years ago
You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.0
Gre4nikov [31]

Answer:

Answer for the question:

You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.00%. What is its yield to maturity? The bond has 6 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question). Group of answer choices

is given in the attachment.

Explanation:

5 0
3 years ago
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