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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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6 0
1 year ago
Clarion Corp. invested cash in a 6-month certificate of deposit (CD) on November 1, 2015. If Clarion Corp. has an accounting per
Ira Lisetskai [31]

Answer:

A is the correct option

Explanation:

Revenue or income is recognized based on accrual concept of accounting where revenue or income is recognized when earned and expenses when incurred not when received or paid in  cash.

As a result,on the 31st December Clarion Corp. has earned two months' interest on the 6-month certificate of deposit as it has invested for two months.

The correct option is A,Clarion recognizes interest revenue on 31st December ,2015 only.

It is also important to note that the since 2015 came to end the fraction of interest revenue relating to  year 2015 needs to be recognized by debiting accrued income account and crediting investment on the face of the income statement

5 0
3 years ago
Can an opinion be wrong? Isn’t everyone entitled to an opinion?
attashe74 [19]

Answer:

Yes

Explanation:

An opinion can indeed be wrong unless you based if of scientific facts and have evidence to back up your opinion. Everyone is indeed entitled to an opinion but not everyone listens to everyone’s opinion that is not backed up with facts.

3 0
1 year ago
Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The
Natasha2012 [34]

Answer:

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Explanation:

4 0
3 years ago
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year
Lana71 [14]

Answer: $107,500

Explanation:

There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.

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6 0
3 years ago
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