1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gizmo_the_mogwai [7]
3 years ago
10

A company had average total assets of $955,000. Its gross sales were $1,108,000 and its net sales were $940,000. The company's t

otal asset turnover equals:
1.02.

0.86.

1.18

0.98.

1.13.
Business
1 answer:
Natali5045456 [20]3 years ago
6 0

Answer:

It is 0.98

Explanation:

Total Assets Turnover Ratio(TATR) =   <u>   Net Sales                </u>      

                                                            Average Total Assets

Net Assets =Gross Sales-Trade discounts-Sales tax-Sales return

TATR = 940,000/955,000 = 0.98 times

It is the ratio of a company's net sales to its average assets employed.

It is a ratio that tells how efficient the company is using its assets to generate its revenue.

The drawback of this ratio is that, if the divisional manager performance is based on this, it may sometimes leads to short-term view of performance. This  may then encourage dysfunctional behaviour which may include refusal to replace an old assets with lower based value which when replace may reduce this ratio because of the higher based value of the new assets while sales still remain the same

You might be interested in
Madison Corporation reported taxable income of $400,000 in 20X3 and accrued federal income taxes of $136,000. Included in the co
kap26 [50]

Answer:

A) $424,000

Explanation:

Madison Corporation's current earnings and profits for 20x3 would be:

reported taxable income - accrued federal income taxes + regular depreciation - E&P depreciation + net capital loss carryover =

$400,000 - $136,000 + $200,000 - $60,000 + $20,000 =  $424,000

5 0
3 years ago
A machine costs $1,000 and has a 3-year life. the estimated salvage value at the end of three years is $100. the project is expe
AnnyKZ [126]
Cost of machine = $1,000

NPV of revenues = p( \frac{1- (1+RoR)^{-n} }{RoR} ) = 600( \frac{1- (1+0.1)^{-3} }{0.1} ) = $1,492.11

NPV of salvage value = FV ( \frac{1}{ (1+RoR)^{n} } )= 100( \frac{1}{ (1+0.1)^{3} } ) = $75.13

Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567
5 0
3 years ago
Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassock standard
navik [9.2K]

Answer:

Efficiency variance  =$9,860   unfavorable

Explanation:

Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate

                                                                                                  Hours

11,900 units should have take (11,900× 4hrs)                          47,600                      

but did take                                                                              <u>48,180</u>

Difference                                                                                   580  unfavorable

Standard hours                                                                     <u> ×   $17 </u>

Efficiency variance                                                           <u>$9,860   unfavorable</u>

5 0
2 years ago
Able Trucking Corporation files a suit in a state court against Bob’s Service Company (BSC), and wins. BSC appeals the court’s d
xz_007 [3.2K]

Answer:

Explanation:

An appellate court will reverse a lower court’s decision on the basis of the facts only

when the finding is clearly erroneous (that is, when it is contrary to the evidence

presented at trial) or when there is no evidence to support the finding. Appellate courts

normally defer to a trial court’s decision with regard to the facts of a case, however, for

several reasons. First, trial court judges and juries have the opportunity to observe

witnesses and tangible evidence first hand. The appellate court sees only a cold record of

the trial court proceedings and therefore cannot make the kind of judgments about the

credibility of witnesses and the persuasiveness of evidence that can be gleaned only from

firsthand experience. Second, as occurs when there is no jury and the case is heard by a

judge, trial judges routinely sit as fact finders. As a result, they develop a particular

expertise in determining what kind of evidence and testimony is reliable and what kind is not

3 0
3 years ago
Priscilla owns 500 shares of Deltona stock. It is January 1, 2016, and the company recently issued a statement that it will pay
kotykmax [81]

Answer:

Priscilla's homemade dividend per share be in 2017 will be $3.585

Explanation:

In order to calculate what will be Priscilla's homemade dividend per share be in 2017 we would have to use the following formula:

homemade dividend=(Dividend in 2016×(1+Required rate))+Dividend in 2017

homemade dividend=($1×(1+8.5%))+$2.50

homemade dividend=$1.085+$2.50=$3.585

Priscilla's homemade dividend per share be in 2017 will be $3.585

7 0
3 years ago
Other questions:
  • When a furniture manufacturer buys the lumber and other raw materials, machines and equipment, manufacturing supplies, and offic
    15·1 answer
  • On December 31, 2012, Albacore Company had 300,000 shares of common stock issued and outstanding. Albacore issued a 10% stock di
    8·1 answer
  • The market price of airline flights increased recently. Some economists suggest that the price increased because several airline
    13·1 answer
  • Now consider machining jamming caused by both defective parts jamming and station malfunction. Assume component lot quality is a
    14·1 answer
  • Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from cus
    8·1 answer
  • Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10
    10·1 answer
  • Identifying Job Application Tools
    9·2 answers
  • Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7. 96% sales tax, a $2,138 veh
    10·1 answer
  • CARLIN:
    11·1 answer
  • This international business strategy is generally the most expensive commitment that a firm can make to an overseas market
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!