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lakkis [162]
3 years ago
10

1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe

these trends. (a) and (b) are separate unrelated circumstances. a) Sales increased by a total of 30% in the prior three years, while Days of Sales in Inventories increased also by 30% in each of these three years. Costs of Goods Sold to Sales remained constant. b) Gross property, plant, and equipment increased by a total of 30% during the prior three years. Operating and administrative expense increased relative to sales by 30% in the prior three years. Sales remained constant. Costs of goods sold to sales remained constant. ANSWER:
Business
1 answer:
marta [7]3 years ago
6 0

Answer:

Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:

a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales.  This result will be different with an increase by a similar margin in the Cost of Goods Sold.

b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.

Explanation:

The net earnings to sales is an expression of the ratio of the net income to the sales revenue.  The net earnings result after deducting all costs from sales revenue.  The net earnings to total book assets are the same expression as the Return on Assets.

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Marizza181 [45]

The best type of system for the order of the jewelry would be:

 

<span>1. </span>A customer chooses what he wants from the jewelry

<span>2. </span>He/she must check if the special jewels that he/she wanted are available for pre-order

<span>3. </span>Once the business agreement is done a transaction shall be followed in the making.

 

<span>Special orders should always be made to be pre-ordered, if the supplier has the item.</span>

6 0
3 years ago
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

8 0
3 years ago
The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: ($ in millions) Co
Yuri [45]

Answer: The answer is c $1,080 $560

Explanation:

The journal entry will be

Dr: common stock $200 million

Dr: paid in capital $180 million

In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.

Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560

6 0
4 years ago
Read 2 more answers
During the 1990s, several airlines were on the brink of bankruptcy. These same airlines were giving away millions of dollars in
lara [203]

Answer:

Assuming that the elimination of frequent-flyer programs would have enabled the airlines to earn higher profits and remain in business, then it would be a purely good idea for the airlines to eliminate their frequent-flyer programs.

The big question is, how much did the frequent-flyer programs cost the airlines?  Would the cost-savings be sufficient to eliminate their bankruptcies?  It is a known-fact that the airlines that create such programs always recover the program costs by charging higher fares.

Explanation:

The issue of airlines going bankruptcy does not seem to stem from customer-loyalty programs like the frequent-flyer programs.  The root cause lies in operational and other costs that airline managements have not been able to control.

4 0
3 years ago
a. Ten years ago today, Excel Corp issued a regular coupon bond that had original maturity of 15 years. The bond pays interest s
Vlad [161]

Answer:

Total $1,271.0564

Explanation:

We have bond of 10 years ago, so the bond is left with 5 years of life

<u>we need to calculate the present value ofthe cuopon payment:</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50 (1,000 x 5%)

time 10 (5 years 2 payment a year)

rate 0.02 (4% annual divide by 2 to get semiannually)

50 \times \frac{1-(1+0.02)^{-10} }{0.02} = PV\\

PV $449.1293

<u>and the present value of the principal</u>

\frac{Maturity}{(1 + rate)^{time} } = PV

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time 5

rate 0.04

\frac{1000}{(1 + 0.04)^{5} } = PV

PV  $821.9271

<u>We add both to get the present value ofthe bond</u>

PV c $449.1293

PV m  $821.9271

Total $1,271.0564

6 0
3 years ago
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