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Len [333]
3 years ago
6

Little Book LTD has total assets of $860 000. There are 75

Business
1 answer:
malfutka [58]3 years ago
5 0

a)Little book LTD earning per share is $1.118 per share.  

Explanation:

To calculate earning per share we will use following formula:

\frac{net income}{weighted average  shares outstanding}

Now to find net income we will take help of  asset turnover ratio :\frac{net sales}{total asset}

Asset turnover ratio = \frac{x}{860000}

\begin{align}\frac{x}{$86000}\end{align}1.5 × $860000 = x

x (net sales) = $1290000

Outstanding shares = 75000 shares

So Net Income  = $1290000×.065

                          = $83850

Now Earning per share = \frac{83850}{75000}

    Earning per share = $1.118

b)  Market to Book Ratio will be 1.2 for Little Book LTD.

Explanation:

Market to Book Ratio =\frac{Market Capitalization}{Total Book Value}

Market Capitalization = $ 75000× $ 12

                                    = $900000

So, Market To Book Ratio =\frac{900000}{750000}

       Market To Book Ratio = 1.2            

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Both power distance and femininity are negatively related to the Environmental Sustainability Index. False

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Chicago Company has a subsidiary in Germany where it generates large profits. The subsidiary remits most of its earnings to the
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Answer:instructing the German subsidiary to borrow euros from a bank in Germany

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The Chicago Company will instruct the German subsidiary to lend Euro from bank in Germany.

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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $23,490 and variable exp
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Answer:

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Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%

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3 years ago
Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was
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Answer:

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Now we can elaborate the following income statement for Garnett Co.

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COGS                             ($20,000)

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Answer:

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