Answer and Explanation:
The computation is shown below:
a. The margin is
= Net operating income ÷ Sales
= $5,200,000 ÷ $18,600,000
= 27.96%
b. The turnover is
= Sales ÷ average operating assets
= $18,600,000 ÷ $35,200,000
= 0.53 times
c. The return on investment is
= Net operating income ÷ average operating assets
= $5,200,000 ÷ $35,200,000
= 14.77%
Hence, the above formulas to be applied
Answer:
The equivalent units of production for the month is 11,850 units
Explanation:
The computation of the equivalent unit is shown below:
= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)
= (8,900 units × 100%) + (5,900 units × 50%)
= 8,900 units + 2,950 units
= 11,850 units
For computing the equivalent units,we have to consider both the units which are mentioned in the question.
Answer:
The boss is correct.
Explanation:
Under Sarbanes-Oxley Act, a rules-based approach to corporate governance and reporting is used. It is based on the view that companies must be
required by law (or by some other form of compulsory regulation) to comply with established principles of good corporate governance.
Except in the instances of exceptions provided in the act, company has no choice than to comply regardless of the cost implication because non-compliance is punishable under the act. Sometimes, it is called tick box approach
This is contrary to what is obtainable in a principled-based approach where allowance is given for explanation in the event of possible con-compliance.
Answer:
$444.42
Explanation:
For computing the saving amount, first need to calculate the economic order quantity, total cost etc
The economic order quantity is
where,
Annual demand is
= 774 packaging crates × 12 months
= 9,932 crates
And, the carrying cost is
= $12 × 34%
= $4.08
= 363.37 crates
Now the total cost is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08
= $742.02 + $740.52
= $1,482.54
Now the total cost in case of 774 packing crates is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08
= $348 + $1,578.96
= $1,926.96
So, the annual saving cost is
= $1,926.96 - $1,482.54
= $444.42
Answer:
Provide a device through which the credit-creating activities of banks can be controlled
Explanation:
The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.
The legal reserve requirement is used by the government as a means to control the supply of money in the economy.
If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.
A high reserve requirement reduces the amount that banks can make available for loans.
I hope my answer helps you
