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Rina8888 [55]
3 years ago
13

The following data has been provided for a company’s most recent year of operations: Return on investment 20% Average operating

assets $ 100,000 Minimum required rate of return 15% The residual income for the year was closest to:
Business
1 answer:
Snowcat [4.5K]3 years ago
3 0

Answer:

$5,000

Explanation:

The return on investment is 20%

= 20/100

=0.2

The average operating assets is $100,000

The minimum required rate of return is 15%

= 15/100

= 0.15

The first step is to calculate the net operating assets

= ROI× average operating assets

= 0.2×100,000

= $20,000

Therefore, the residual income can be calculated as follows

= Net operating income-(minimum required rate of return×average operating assets)

= $20,000-($100,000-0.15)

= $20,000-15,000

= $5,000

Hence the residual income for the year was closest to $5,000

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They turned to individual offering and promoting. 
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When a central bank increases bank reserves by $1, the money supply rises by more than $1. The amount of extra money created whe
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Answer:

ii) in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.

Explanation:

In a  fractional-reserve banking system, banks only keep a fraction of total deposits on hand. They will usually only keep the amount required by the Fed, which is called the required reserve ratio. Banks will lend the rest of the money to customers, since they make money by borrowing from customers and lending it at higher rates.

E.g. you deposit $1,000 in the bank. The bank is required to keep 10% in reserves, but lends $900 to another client. That client will spend the money and purchase something. The seller of that good or service then deposits the money into his/her bank. That second bank will then separate $90 as reserves and lend $81 to a different client which will again purchase something, and the cycle goes on...

6 0
3 years ago
An operation's Beginning Inventory for an accounting period equaled $15,000. Ending Inventory for the period equaled $14,000, Pu
kherson [118]

Answer:

$1,500

Explanation:

Data provided:

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Ending Inventory for the period = $14,000

Total Cost of Sales = $21,000

Now,

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Property taxes on the factory building is an example of a committed fixed cost at Bennett, Inc.

<h3>What are committed fixed cost?</h3>

The costs necessary to maintain current production capacity are referred to as committed fixed costs or capacity costs. These expenses result from top managers' long-term choices regarding the scope and makeup of their firm.

committed fixed costs are essential for the efficient functioning of a business, and their absence may disrupt such operations, which could have a real effect on the organization.

For businesses, property taxes are a fixed expense. The taxes normally don't vary and are only adjusted for improvements in the value of the related asset or facility. However, property taxes typically remain constant from year to year.

To know more about fixed cost refer to:  brainly.com/question/14597388

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