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Zielflug [23.3K]
3 years ago
10

A firm has a tax burden of 0.9,a leverage ratio of 1.1, an interest burden of 0.6, and a return-on-sales ratio of 13%. The firm

generates $2.62 in sales per dollar of assets.
What is the firm's ROE?
Business
1 answer:
Afina-wow [57]3 years ago
4 0

Answer:

the firm's ROE is 20%

Explanation:

The tax burden is 0.9

The interest burden is 0.6

The return on sales margin is 13%

The turnover ratio is 2.62

The leverage ratio is 1.1

Calculate the ROE

ROE = 0.9 * 0.6 * 0.13 * 2.62 * 1.1

=0.2 or 20%

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YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any pa
jarptica [38.1K]

Answer:

warrant expense 51,000 debit

          cash                       6,000 credit

          warranty liability 45,000 credit

--to record warrant-related accounts--

interest payable 16,667 debit

interest expense  3,333 debit

          cash                  20,000 credit

--to record interest expense for the loan and installment--

Manufacturing Facilities 5,192,772  debit

              Cash                    5,000,000 credit

              Restoration Liability 192,772 credit

-- to record the payment to contractor--

Explanation:

Warranty: the additional expected expense are considered warranty laibility

Loan: we previously recorded accrued interest from March 1st to Dec 31th

That is: 200,000 x 10% x 10/12 months = 16,667 payable

At February 28th we recognize the last two month of interest

200,000 x 10% x 2/12 months = 3,333 expense

in total we have 16,667 + 3,333 = 20,000 cash outlay

Facility: the asset should add to all the cost necessary to acquire it:

As the conversion into community center is mandatory it is part of the cost:

present value of the 500,000 in ten years:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $500,000.00

time  10.00

rate  0.10000

\frac{500000}{(1 + 0.1)^{10} } = PV  

PV   192,771.6447

Total cost:

5,000,000 cashg + 192,772 liability = 5,192,772

4 0
3 years ago
Write down any four techniques that you can practice to become an effective listener.
klemol [59]
For techniques that you can practice to become an efficient listener or listening with all ears paying attention giving feedback and observing your anatomy is of listening.
8 0
2 years ago
Read 2 more answers
Which of the following concepts requires that economic data be recorded in dollars in the United States?
s344n2d4d5 [400]

Answer:

Unit of measure concept  

Explanation:

The definition for a unit of measure refers to a common principle used throughout accounting, whereby all activities should be reported uniformly using the same currency. For instance, a business that holds its documents in just the U.S. will report its whole dealings in U.S. dollars, whereas a German company will report all its payments in euros.

If a transaction includes transactions or transfers in another currency, the sum is translated until being registered to the domestic currency utilized by an entity. Without a specific standard unit, financial reports will be impossible to generate.

4 0
3 years ago
Read 2 more answers
If individuals believe their income will decrease in the near future, they may _____________ their spending
Finger [1]
Decrease, cut, halt, slow down.
7 0
3 years ago
In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ra
uysha [10]

Answer:

C. Stella, Capital will be debited for $4,000.

Explanation:

As for the provided information, we have,

Out of all the partner's Tiffany is retiring.

Tiffany's capital balance = $50,000

On his retirement he is paid $60,000

Since no goodwill is recorded, the excess amount paid over capital = $60,000 - $50,000 = $10,000, will be debited in remaining partner's ratio.

Ron's share in these $10,000 = $10,000 \times 3/(3+2) = $6,000

Stella's share = $10,000 \times 2/(2+3) = $4,000

Thus, Correct answer is debiting Ron's capital by $6,000 and Stella's capital by $4,000

3 0
3 years ago
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