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3 years ago

To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False

Business

1 answer:

8090 [49]3 years ago

7 0

Answer:

FALSE

Explanation:

Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a company's sales by its total assets.

To increase sales, management should continue to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.

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Which of the following is likely to increase a country's gross domestic product (GDP)?

antiseptic1488 [7]

Answer: In macroeconomics, gross domestic product (GDP) is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a determined period, normally one year or quarterly.

GDP can be measured by adding up all the final demands for goods and services in a given period. In this case, the destination of the production is being quantified. There are four major areas of spending: household consumption (C), government consumption (G), investment in new capital (I) and the net results of foreign trade (exports-imports).

And it can also be measured by adding the income of all the factors that contribute to the production process, such as wages and salaries, commissions, rents, copyrights, fees, interests, profits, etc. The GDP is the result of the calculation by means of the payment to the factors of the production. All this, before deducting tax.

Thus the statements "b. An increase in Social Security expenses" as government expenses, "c. An increase in retirement and pension benefits to elderly citizens" as subsidies or transfers, and " d. An individual receiving an annual performance bonus of $5,000" as financial interest are likely to increase a country GDP.

3 0

3 years ago

Read 2 more answers

A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I

Valentin [98]

Answer:

A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

3 0

3 years ago

Income Statement (in Millions of Dollars) Net sales $100.0 Cost of sales 60.0 Selling, general, and administrative expenses 20.0

frez [133]

Answer:

the balance sheet is missing:

Balance Sheet (In millions of Dollars)

ASSETS

Cash $6.0

Accounts Receivable 14.0

Average Inventory 12.0

Fixed Assets, net 40.0

TOTAL ASSETS $72.0

LIABILITIES AND EQUITY

Accounts Payable $10.0

Salaries and Benefits Payable 2.0

Other current Liabilities 10.0

Long-term debt 12.0

Equity 38.0

TOTAL LIABILITIES AND EQUITY $72.0

a. Determine the length of the inventory conversion period.

inventory conversion period = average inventory / (COGS/365) = 73 days

b. Determine the length of the receivables conversion period.

receivables conversion period = accounts receivables / (net sales/365) = 51.1 days

c. Determine the length of the operating cycle.

length of operating cycle = 73 + 51.1 = 124.1 days

d. Determine the length of the payables deferral period.

length of the payables deferral period = accounts payables / (COGS/365) = 60.83 days

e. Determine the length of the cash conversion cycle.

cash conversion cycle = 73 + 51.1 - 60.83 = 63.27 days

f. What is the meaning of the number you calculated in Part e?

How long does it take to turn inventories into cash, it is a measure of asset liquidity.

8 0

3 years ago

For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.

Gnom [1K]

Answer:

Alice's consumer surplus = $5

Jeff's consumer surplus = $16

Nicole's producer surplus = $1

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.

Consumer surplus = willingness to pay - price of the good

Producer surplus is the difference between the price of a good and the least price the producer is willing to accept

Producer surplus = price of the good - least price the producer is willing to accept

Alice's consumer surplus = $30 - ($35 - $10) = $5

Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16

Nicole's producer surplus = $501 - $500 = $1

5 0

3 years ago

_____ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities,

IRINA_888 [86]

Answer:

The correct answer is E

Explanation:

SWOT analysis stands for Strength, Opportunities, Threats and Weaknesses analysis, is defined or described as the framework which is used for analyzing as well as identifying the factors of the external and the internal, which have an impact on the product, person or product viability.

So, the SWOT is the one which is a classic management tool or technique which incorporates the elements of the scanning.

4 0

3 years ago