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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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kkurt [141]

True. Investors can postpone or avoid income tax by investing through individual retirement accounts. Tax-deferred and tax-exempt retirement accounts are two most popular options for lowering tax obligations. Both forms of retirement accounts reduce total amount of taxes a person will pay throughout their lifetime.

Immediate tax deductions up to the full amount of contribution in tax-deferred accounts is allowed. Money in account continues to grow tax-free. Instead of offering tax reductions on donations, tax-exempt accounts offer future tax benefits.

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7 0
1 year ago
UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburger patties, buns, milk, and so on). UAHH count
Assoli18 [71]

Answer:

730 items

Explanation:

The objective of the given information is to determine the number of hamburgers UAHH should order for the following conditions:

Average daily demand 600

Standard deviation of demand 100

Desired service probability 99%

Hamburger inventory 800

The formula for a given order quantity in a fixed period of time can be expressed as :

q = \overline d(L+T)+ z \sigma_{L+T}-I

where;

q =  order quantity = ???

\overline d = daily demand average = 600

L = lead time in days = 1

T = time taken = 1

z = no of standard deviation = ???

\sigma_{L+T} = standard deviation of usage in lead time and time taken = ???

I = present inventory level = 800

\sigma_{L+T} = \sqrt 2 × standard deviation of daily demand

\sigma_{L+T} = \sqrt{2} *100

\sigma_{L+T} = 1.4142 * 100

\sigma_{L+T} = 141.42 items

From the Desired service probability 99% = 0.99; we can deduce the no of standard deviation by using the excel function (=NORMSINV (0.99))

z = 2.33

From q = \overline d(L+T)+ z \sigma_{L+T}-I

q =600(1+1)+ 2.33*(141.42)-800

q =600(2)+ 2.33*(141.42)-800

q =1200+329.5086-800

q = 729.5086 items

q ≅ 730 items

Therefore; the  number of hamburgers UAHH should order from the following given conditions = 730 items

6 0
3 years ago
Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manu
Alex

Answer:

Net operating profit= 102,000

Explanation:

Giving the following information:

Selling price per unit $ 71

Manufacturing costs:

Direct materials $ 12

Direct labor $ 6

Variable manufacturing overhead $ 3

Fixed manufacturing overhead per year $ 264,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 4

Fixed selling and administrative expense per year $ 74,000

Year 1

Units in beginning inventory 0

Units produced during the year 11,000

Units sold during the year 8,000

Units in ending inventory 3,000

Year 2

Units in beginning inventory 3,000

Units produced during the year 12,000

Units sold during the year 14,000

Units in ending inventory 1,000

Unitary cost= (12 + 6 + 3) + (264,000/11,000)= $45

Income statement:

Sales= (8,000*$71)= 568,000

COGS= (8,000*45)= 360,000 (-)

Gross profit= 208,000

Variable selling and administrative= (4*8000)= 32,000 (-)

Fixed selling and administrative expense= 74,000 (-)

Net operating profit= 102,000

4 0
3 years ago
8. When Jill Thompson received a large settlement from an automobile accident,
Dennis_Churaev [7]

Answer:

The amount of fees that Jill will pay this year=$248.20

Explanation:

Expense ratio is a measure of how much fees that fund management firms charge their clients for their investments services. These fees cover administrative and operational costs. In our case, the expense ratio will be expressed as the fees that Jill will pay as a portion of the total amount she invested. The expense ratio can be expressed as shown;

ER=C/A

where;

ER=expense ratio

C=total funds cost

A=total funds assets

In our case;

ER=0.17%=0.17/100=0.0017

C=unknown to be determined

A=$146,000

replacing;

C=ER×A

C=0.0017×146,000=$248.20

The amount of fees that Jill will pay this year=$248.20

3 0
3 years ago
PLEASE HELP ASAP ITS A TEST
skelet666 [1.2K]

Answer:

A is the right answer so right it

8 0
3 years ago
Read 2 more answers
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