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Natali [406]
3 years ago
12

For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth o

r expansion. These undistributed profits are referred to
1. ascurrent assets.
2. owners' equity.
3. retained earnings.
4. dividends payable
Business
1 answer:
Tanzania [10]3 years ago
5 0

Answer:

3. retained earnings.

Explanation:

When a company earns profit, taxes are deducted to find the net profit or net earnings. From these, it pays dividends at a certain dividend payout ratio; which is usually dividends/ net profit. Whatever remains is reinvested back into the company for funding potential profitable projects and other expansions and are referred to as retained earnings. This gives the retention rate which is basically (1 - payout ratio).

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Hank has a 32% marginal tax rate and has already recognized a STCL of $8,000 and a L TCG of $5,000, both due to the sale of stoc
Ivenika [448]

Answer:

The increase in his tax liability is $1,120

Explanation:

STCL due to sale of stock = $8,000

LTCG due to sale of stock = $5,000

∴Net STCL = $8,000 - $5,000

 Net STCL = $3,000

LTCG on sale of antique clock = $7,000

∴Net LTCG on sale of antique = $7,000 - $3,000 = $4,000

LTCG on sale of antiques is taxed at the rate of 28%

∴ Tax liability = $4,000 * 28%

  Tax liability = $4,000 * 0.28

  Tax liability = $1,120

6 0
3 years ago
Organizational effectiveness is a _________, meaning that it is created and defined by an individual or group rather than existi
vova2212 [387]

Answer: Social construct

Explanation:

The organizational effectiveness is the social construct that it is basically defined by the individual and groups instead of existing in external world independently.  

Social construct basically influence the organization for their actual rights and actions. Basically, it is the idea which are accepted and created by the society people.

In the social construct all the people unite together rather than exist independently. It basically assign notion and meaning that are assign to each object in the environment.

6 0
3 years ago
Suggest and critically discuss a model that helps managers to decide to adopt an offensive or defensive route. Support your answ
Artist 52 [7]

Answer:

Please find the complete question in the attached file.

Explanation:

In order to study the impact on five forces and thereby decipher an offensive or defense strategy to stay competitive and maintained, management must employ a prototyping approach as Porters 5 Headed framework. Samsung, for example, should adopt a great combination because of its subsequent globalization.

Providers' bargaining power — In this industry, several companies offer low-cost services, which indicates the suppliers have much less bargaining energy.

Consumers' trading strength - Since Hyundai either works in a totally competitive environment or an oligopolistic marketplace across the globe.

The threat of new entries – The risk is significantly greater because new entries from low-cost China carriers can eat Samsung share since they are tax- and licensing-friendly.

The danger of competing among established businesses - That's also relatively significant because profits are thin and innovative developments are continually making the industry as a whole and tough.

Barriers to business – The biggest barriers are an initial investment, high marketing, and distribution expenses, and constant innovation.

6 0
2 years ago
Use the information from the balance sheet and income statement below to calculate the following ratios:
Marina86 [1]

Answer:

a. Current Ratio  = current assets / current liabilities = 190,000 / 153,000 = 1.24

b. Acid-test ratio  = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92

c. Times interest earned  = EBIT / interest expense = 65,000 / 8,000 = 8.13

d. Inventory turnover  = COGS / inventory = 90,000 / 50,000 = 1.8

e. Total asset turnover  = net sales / total assets = 210,000 / 525,000 = 0.4

f. Operating profit margin  = operating income / total sales = 65,000 / 210,000 = 0.31

g. Days in receivables  = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 =  52.14 days

h. Operating return on assets  = operating income / total assets = 65,000 / 525,000 = 0.12

i. Debt ratio  = total liabilities / total assets = 273,000 / 525,000 = 0.52

j. Fixed asset turnover  = total sales / fixed assets = 210,000 / 335,000 = 0.63

k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18

4 0
3 years ago
15. The Eller Mutual Fund had a Net Asset Value (NAV) per share of $17.50 on January 1, 2019. On December 31, 2019 the fund’s NA
klio [65]

Answer:

The rate of return is 21.26%

Explanation:

Before calculating the return in percentage terms, it would be more appropriate to start with computing the return on the mutual fund in dollars ' terms.

Return in dollars terms;

Net Asset Value on 31 December 2019              $19.47

less

Net Asset Value on 1 January 2019                    ($17.50)

return  on NAV                                                      $1.97

Add:

Income distributions                                             $0.75

Capital gains distributions                                     $1.00

Total return on mutual fund                                   $3.72

Rate of return=total return mutual fund/Opening net asset value

rate of return =$3.72/$17.50

                       =21.26%

7 0
3 years ago
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