The return on assets for Cruz Company with a total revenue of $80,175 and total expenses of $50,000, given average assets of $425,000 is 7.1%.
Return on Assets = Net Income/Average Assets x 100
= $30,175/$425,000 x 100
= 7.1%
- The return on assets indicates the profitability of Cruz Company relative to its assets. It is expressed as a percentage by dividing the Net Income with the Average Assets, then multiplied by 100.
Data and Calculations:
Revenue = $80,175
Expenses = $50,000
Net income = $30,175
Assets:
Beginning balance = $400,000
Ending balance = $450,000
Average assets = $425,000 ($400,000 + $450,000)/2
Thus, the return on assets equals 7.1% for the year.
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<span>Demographics are used by advertisers to determine what advertisements and products are more likely to be seen or bought by a group of people within the same age range. If a product is less likely to be bought by a certain age group it will not be marketed towards them. It will instead be marketed towards an age group who will buy it.</span>
Answer:
The correct option is C
Explanation:
Closed end fund is the fund which is of pooled assets and increases or raise the fixed amount of capital by the procedure of IPO (stands for Initial Public Offering) and then the shares are listed for the purpose of trade on the stock exchange.
When the investors wish to liquidate (means cash), the holdings in fund which is closed end, might sell the shares on the secondary market or open market.
Answer: Option (B) is correct.
Explanation:
Capital contribution by David = $40,000
Interest of David in partnership =
Total capital of the partnership after the admission of new partner:
=
= $200,000
Total capital of partnership before decreasing of obsolete inventory:
= $140,000 + $40,000 + $40,000
= $220,000
Therefore, value of decrease in inventory:
= Total capital before decrease - Total capital after decrease
= $220,000 - $200,000
= $20,000
The reduction in value of inventory will be distributed in old partners in ratio of 3:1
Hence,
Capital balance of Allen after admission of David:
=
= $125,000
Capital balance of Daniel after admission of David:
=
= $35,000
Answer:
Break-even Sales revenue =$220,600
Explanation:
<em>B</em><em>reakeven point is the level of activity that equates the total cost to the total revenue.</em>
<em>At the break-even point the business makes no profit and no loss</em>.
Break-even point = Total fixed cost for the period / Contribution margin ratio
<em>Contribution margin = total contribution/ total sales</em>
<em>Contribution = Fixed cost + profit</em>
Contribution = $42,028 + $83,828
= $125,856.00
<em>Contribution to sales ratio</em>
= (125,856.00 /331, 200) × 100
= 38%
Break-even sales revenue = $83,828/0.38
=$220,600