Answer:
it has flexibility in setting prices of its products.
Question : What is sustainable growth Rate
Answer:
Sustainable growth Rate = 1.69 %
Explanation:
Sustainable growth Rate = Return on Equity x Retention Rate
Where Return on Equity = Asset Utilization Rate x Profitability Rate x Financial Utilization Rate
Asset Utilization Rate= Total Sales/Total Assets
= 20,700/46,260 = 0.45
Profitability Rate = Net Income/ Total Assets
= 4,940/46,260 = 0.11
Financial Utilization Rate = total debt/ Total equity
= 16,780/ 29,480 = 0.57
Return on Equity = 0.45 x 0.11 x 0.57
=0.028
Retention Rate = 1- dividend pay out ratio
= 1-0.40
= 0.60
Sustainable growth Rate = 0.028 x 0.60
= 1.69 %
Answer:
$950,000
Explanation:
<u>Particular Amount Amount</u>
Finish Goods $39,000
W.I.P Goods $34,000
Add: material $27,000
material purchase $555,000
Direct labor $248,000
<u>Factory Overhead $143,000</u>
$1,007,000
Less: material $20,000
W.I.P Goods at end $33,000
<u>Finish Goods $43,000 </u>
<u> $911,000</u>
<u>Total cost of goods sold $950,000</u>
Answer:<u><em> The amount and character of Daniela's gain or loss from the distribution will be $0.</em></u>
Explanation:
Given : Daniela is a 25% partner in the JRD Partnership, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000.
<u><em>Here, Daniela will not recognize any gain or loss on the distribution. She will instead reduce the basis of the inventory she receives in complete liquidation of her interest.</em></u>
