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klio [65]
3 years ago
10

Torrid Romance Publishers has total receivables of $3,000, which represents 20 days’ sales. Total assets are $75,000. The firm’s

operating profit margin is 5%. Find the firm's ROA and asset turnover ratio.
Business
1 answer:
AveGali [126]3 years ago
4 0

Answer:

Assets turnover ratio= 0.73

ROA= 3.65%

Explanation:

Torrid romance publishers have a total receivables of $3,000, it represents a 20 days sales

The total assets is $75,000

The operating profit margin is 5%

= 5/100

= 0.05

The first step is to calculate the total sales

= $3,000×365/20

= $3,000×18.25

= $54,750

The asset turnover ratio can be calculated as follows

= Total sales/Total assets

= $54,750/$75,000

= 0.73

The ROA can be calculated as follows

= Assets turnover ratio×operating profit margin

= 0.73×0.05

= 0.0365×100

= 3.65%

Hence the assets turnover ratio and ROA is 0.73 and 3.65% respectively.

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Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She ha
sladkih [1.3K]

Answer:

$88,700

Explanation:

Given:

Keisha owns a house value $275,000 with a mortgage of $195,000. She owns a car value $12,000 and has $7,500 in car loans.

She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card.

Hence, The net worth of Keisha is $88,700

7 0
2 years ago
The financial reporting for private not-for-profit entities primarily focuses on: Multiple Choice basic information for the orga
Romashka [77]

Answer: basic information for the organization as a whole.

Explanation:

Private Not-for-profit organization as the term implies, are not operating to make a profit therefore their financial statements will generally not include measures that are aimed at showing profit like profit making organizations.

They will instead focus on talking about the entire organization as whole and what it has done so far in the current period. This is what is required of them by U.S. GAAP.

7 0
3 years ago
On October 1, 2022, Ivanhoe Company places a new asset into service. The cost of the asset is $87500 with an estimated 5-year li
Dimas [21]

Answer:

$3150

Explanation:

Given:

Cost of the asset purchased = $87500 (on 1st October. 2022)

Salvage value at the end of its useful life = $24500

Useful life estimated = 5 years

Question asked:

What is the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation?

Solution:

<u>As we know:</u>

Straight-Line\ Depreciation\ Expense=\frac{Cost\ - Salvage\ Value}{Useful\ Life\ of\ the\ Asset}

                                                               =\frac{87500-24500}{5} =\frac{63000}{5} =12600

Depreciation expenses per year = $12600

But we have to find depreciation expenses for 2022 for:-

From 1st October, 2022 to 31st December, 2022 = 3 months.

<em><u>Straight-Line Depreciation Expense for Partial Year = </u></em>

<em><u /></em>D\times\frac{N}{12} \\\\ D=Depreciation\ expense\ for\ a\ complete\ year.\\N= Number\ of\ months\ during\ which\ the\ fixed\ asset\ was\ available\ for\ use

Depreciation Expense for 3 months = 12600\times\frac{3}{12} =\frac{37800}{12} =3150

Therefore, the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation is $3150.

                                                             

5 0
3 years ago
Sumiko files her tax return married filing separately. She has not lived with her husband for over two years. Beginning in Janua
Bezzdna [24]

Answer:

b. 7,200

Explanation:

600 x 12 =7200

4 0
3 years ago
In order to compete well and gain market share, contemporary businesses are changing to be more _______________. customer-driven
MaRussiya [10]
The answer to this problem is the first item in the choices which is the "Customer - driven". This will complete gain market share, an investment which focuses not only on the price of the product but on how the buyers and customers feel the satisfaction of the value of the product or services.
5 0
3 years ago
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