Answer and Explanation:
The Preparation of the simple income statement and a balance sheet is shown below:-
Corporation X
Income Statement
for the Year Ended xxxx
Particulars Amount
Sales $1,000,000
Less: Cost of goods sold $500,000
Gross profit $500,000
Less: Other expenses $60,000
EBIT $440,000
Less: Interest $70,000
EBT $370,000
Less: Income tax $100,000
Net income $270,000
Number of shares outstanding $80,000
Earning per share $3.375
(Net income ÷ Number of shares outstanding)
Corporation X
Income Statement
for the Year Ended xxxx
Particulars Amount
Assets
Cash $70,000
Accounts Receivable $150,000
Inventory
Raw Material $80,000
Finished Goods $250,000
Total Current Assets $550,000
Plant & Equipment $410,000
Total Assets $960,000
Liabilities
Accounts Payable $160,000
Other Current Liabilities $60,000
Total Current Liabilities $220,000
Long term Debt $200,000
Equity $540,000
Total Liabilities & Equity $960,000
Answer:
Explanation: 2,3,4,5 I just did it
I believe the answer is: For whom it should be produced.
There are only 3 basic economic questions that should be asked before opening a business. What to produce, for whom it should be produced, and how to produce it.
By knowing the target consumers, Jordan could determine the best possible place to set up his store that can be easily accessed by his target consumers.
For example, if he produce the lemonade to children, he need to place the stand on the roads where many of the students cross on their way from school to home.
Answer:
a. Productivity will definitely fall.
Explanation:
The productivity of a firm is directly associated with the type of return on inputs. If marginal returns on inputs are increasing, the increase in an input quantity will increase output more than proportionally. If the marginal returns of the inputs are constant, for each increase in the amount of inputs, there will be an increase of one unit produced. If the marginal return on inputs is decreasing, the increase in input quantity will lead to a less than proportional increase in output. Thus, the increase of one unit of capital and labor will generate less than one unit produced. Thus, it will be necessary to increase more than one unit of each input to produce one unit of good, that is, productivity will be decreasing.
This problem needs a Balance Sheet. Ratios are computed based on Balance Sheet, Income Statement, and Statement of Cash flows.
I'll just give out the formula needed to solve for each question.
Current ratio = Current Assets / Current Liabilities
* These figures are found in the Balance Sheet.
Quick ratio = (Cash + Marketable Securities + Accounts Receivable) ÷ <span> Current Liabilities
* These figures are found in the Balance Sheet
</span><span>Inventory turnover ratio = Cost of goods sold / Average Inventory
Inventory turnover ratio = 1,400,000 / Average Inventory
Receivables turnover = Net Credit Sales / Average Accounts Receivable
Assuming Sales is all on account,
Receivables turnover = 2,000,000 / Average Accounts Receivable
Total asset turnover = Net Sales / Total Assets
Assuming Sales is all net of sales returns and discounts,
Total asset turnover = 2,000,000 / Total Assets
Times interest earned (TIE) = Income before Interest and Taxes / Interest Expense
Times interest earned = 370,000 / 50,000 = 7.4 times
Total debt ratio = Total Liabilities / Total Assets
Return on equity (ROE) = Net Income / Shareholders Equity
Return on equity = 240,000 / Shareholders' Equity
Return on assets (ROA) = Net Income / Total Assets
Return on assets = 240,000 / Total Assets
Market-to-book ratio = Share Price / Net book value per share
Market-to-book ratio = 41.40 / Net book value per share
Price-to-earnings (P/E) ratio = Market Value per share / Earnings per share
</span><span>Price-to-earnings ration = 41.40 / 2.40 = 17.25
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