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Inessa [10]
3 years ago
10

The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities o

f $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Business
1 answer:
Maurinko [17]3 years ago
6 0

Answer:

1.08 dollars of sales are generated from every $1 in total assets.

Explanation:

Calculate Current asset from net working capital formula:

Net Working capital = Current Assets - Current Liabilities

$2,715 = Current Assets - $3,908

Current Assets = $2,715 + $3,908

Current Assets = $6,623

Now calculate Total Assets:

Total Assets = Fixed Asset + Current Assets

Total Assets = $22,407 + $6,623

Total Assets = $29,030

We can calculate dollars' worth of sales are generated from every $1 in total assets by following formula:

Asset turnover ratio = Net Sales / Total Assets

Asset turnover ratio = $31,350 / $29,030 = 1.08

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QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be
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Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow =  $11,440

Acquisition price = $520,000

So Equity Dividend Rate = \frac{11440}{520000} X 100

     Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

4 0
3 years ago
Vino Winery is considering the purchase of a state-of-the-art bottling machine. The new machine will cost $20,790 and will have
jolli1 [7]

Answer:

the internal rate of return is 6%

Explanation:

The computation of the internal rate of return is shown below;

Given that

Years         Cash flows

0                -$20,790

1                   $6,000

2                  $6,000

3                 $6,000

4                 $6,000

Now apply the following formula i.e..

= IRR()

After applying the above formula, the internal rate of return is 6%

6 0
3 years ago
Foreign saving is used for domestic investment when foreigners engage in
dmitriy555 [2]

Foreign saving is used for domestic investment when foreigners engage in either foreign direct investment or foreign portfolio investment.

 

<span>To add, ‘Foreign savings’ and the ‘net external resources inflows’ are the two popular acronyms used for the current account deficit in the balance of payments.</span>

8 0
3 years ago
When economists say that a good is non-rival in consumption, they mean that:____.
juin [17]

Answer: When economists say that a good is no -rival in consumption, More than one person can enjoy the good at the same time

A good is excludable if someone can be prevented from using it. A good is rival in consumption if one person's use reduces others' ability to use the same unit of the good. Markets work best for private goods, which are excludable and rival in consumption. Markets do not work well for other types of goods.

5 0
3 years ago
At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit bal
disa [49]

Answer:

a. Allowance for doubtful accounts = Unadjusted balance + Adjusted balance

= $10,500 + $110,000

= $120,500

b. i)The adjusted balance of accounts receivable shall be $2,150,000(adjusted debit balance)

ii) Adjusted balance = Bad debt expense - Unadjusted balance

= $120,500 - $10,500

= $110,000 (Adjusted credit balance)

iii) Adjusted bad debt expense = Unadjusted balance of allowance for doubtful accounts + Adjusted balance allowance for doubtful accounts

= $10,500 + $110,000

= $120,500 (Adjusted debit balance)

c. Net realizable value = Gross accounts receivable - Allowance for doubtful accounts

= $2,150,000 - $110,000

= $2,040,000

3 0
3 years ago
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