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3 years ago

Required:

Business

1 answer:

olga55 [171]3 years ago

4 0

Answer:

Find below the variables missing from the question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows :

Division A Division B Division C

Sales $5,800,000 $9,800,000 $8,900,000

Average operating assets $1,450,000 $4,900,000 $2,225,000

Net operating income $284,200 $872,200 $191,350

Minimum required rate of return 18.00% 17.80% 15.00%

On the basis on return on investment Division A is preferred

On the basis of residual income Division A is also preferred

Explanation:

Return on investment is the net operating income compared to the average operating assets in the year:

Division A return on investment=$284,200/$1,450,000=19.6%

Division B return on investment=$872,200/$4,900,000=17.8%

Division C return on investment=$191,350/$2,225,000 =8.60%

Residual income=net operating income-(required rate of return*average operating assets

Division A residual income=$284,200-(18%*$1,450,000)=$23200

Division B residual income=$872,200-(17.80%*$4,900,000)=$0

Division C residual income=$191,350-(15%*$2,225,000)=$=$191,350-(15%*$2,225,000)

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Richard, age 50, is employed as an actuary. For calendar year 2019, he had AGI of $130,000 and paid the following medical expens

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Answer:

c. $10,340

Explanation:

For year 2018, the deduction for medical expense is amount of qualified medical expense that exceeds 7.5% of AGI.

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3 years ago

Individual policies are generally stand-alone policies, but may be written with other types of policies as a(n): a. Endorsement

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Answer:

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3 years ago

The following are the typical classifications used in a balance sheet:

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Answer:

a. Current assets

Allowance for uncollectable accounts

Inventories

Prepaid rent for next 9 months

Cash

b. Investments and funds

Investment in xyz corporation

c. Property, plant, and equipment

Equipment

Land in use

Building in use

d. Intangible assets

Patents

e. Other assets

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g. Long-term liabilities

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Explanation:

A Balance Sheet shows the balances of Assets, Liabilities and Equity as at the reporting date.

Assets

There are two major asset categories which are Current Assets and Non- Current Assets. Current Assets are assets not exceeding 12 months examples are Inventories and Cash. Whilst Non-Current Assets are assets exceeding a period of 12 months examples are Property, Plant and Equipment items such as Land, Investments and Intangible Assets

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3 years ago

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Answer:

Which of the following is not a cost created by high inflation?

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B. Inflation causes the real interest rate to change which can make it more difficult to borrow and lend money.

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