Answer:
11.11%
Explanation:
The computation of the return on assets is given below:
But before that following calculations need to be done
Total assets = Total debt ÷ Total debt ratio
= $657,000 ÷ 0.31
= $2,119,354.839
Total equity = Total Assets - Total Debt
= $2,119,354.839 - $657,000
= $1,462,354.839
Net profit = Total equity × Return on equity
= $1,462,354.839 × 0.161
= $235,439.129
And, finally
ROA = Net profit ÷ Total Assets
= $235,439.129 ÷ $2,119,354.839
= 11.11%
Answer:
Explanation:
In business accounting, the inventory conversion period / payables deferral period and average collection period use different inputs due to the fact that Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Therefore the accounts receivable (average collection period) are attached and dependent on the specific/changing price of the goods sold.
Answer:
Proposal A
3.75 years
Proposal B
3.375 years
Explanation:
<u>Proposal A</u>
Payback = 3.75 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $280,000 770,000 1
2 $280,000 490,000 2
3 $280,000 210,000 3
4 $280,000 0 *3.75
* 1050,0000 / 280,000 = 3.75 years
<u>Proposal B</u>
Payback = 3.375 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $350,000 700,000 1
2 $3150,000 385,000 2
3 $280,000 105,000 3
4 $280,000 0 *3.375
* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years
Answer:
Estimated manufacturing overhead rate= $77 per direct labor hour
Explanation:
Giving the following information:
Production:
Product A: 1,850 units
Product B: 1,250
Hours required:
Product A: requires 0.3 direct labor-hours per unit
Product B: requires 0.6 direct labor-hours per unit.
The total estimated overhead for the next period is $100,485.
First, we need to calculate the total amount of direct labor hours required:
Total direct labor hours= 0.3*1,850 + 0.6*1,250= 1,305 hour
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 100,485/1,305= $77 per direct labor hour
