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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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Explain the relationship between the factors of production and how that creates a
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Answer:

Natural resources (land)

Labor  (human capital)

Capital (machinery, factories, equipment)

Entrepreneurship

Explanation:

nature is the first key of success like having a land to start up

labor is the teamwork needed support between all ( all for one, one for all)

capital is needed just like food, no money no business

Entrepreneurship: it depends on what is the idea of business you want, and how it really help the community  

7 0
3 years ago
The following is the adjusted trial balance for Baker Services. Accounts Debit Credit Cash $34,000 Accounts Receivable 28,000 Pr
marta [7]

Answer:

Ending RE           153,000

Explanation:

Retained Earning will be calcualte as follows:

$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning

We need to solve for the net incoem in order to solve for ending Retained Rearnings (RE)

Net Income: Revenues - Expenses

Service Revenue            280,000

Salaries Expense             (62,000)

Depreciation Expense       (5,900)

Supplies Expense             (14,000)

Insurance Expense           (14,600)

Utilities Expense            <u>  (20,000) </u>

             Net Income       163,500

Retained Earnings 11,500

Net Income         163,500

Dividends            (22,000)

Ending RE           153,000

7 0
4 years ago
Flint Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $76,700. Flint determined th
Sphinxa [80]

Answer:

The journal entry to record the reduction in value would be:

Account Title                                Debit              Credit

Loss on Impairment                     11,700

Debt Investments (Available-for-Sale)                11,700

$76,700 - $65,000 = 11,700

In this case, a loss has occurred and the individual security should be written down. If Flint Co. has already recognized an unrealized holding loss—equity, an additional entry is needed to reverse this amount as well as eliminate the fair value adjustment (available-for-sale) account.

5 0
3 years ago
The factors that need to be determined to compute depreciation are an asset's: a. Cost, residual value, and physical life. b. Fa
lakkis [162]

Answer:

Cost, residual value, and service life

Explanation:

The computation of depreciation requires three (3) inputs.

Cost: the acquisition cost of the asset

Residual value: the value at which the asset will be sold

Service life: the number of years the assets will be used by a company (also known as useful life).

Thus Depreciation = \frac{Cost - Residual Value}{Service Life}

Physical life will be inappropriate because the physical life includes not only the useful life of the asset in a company, but also the life of the asset when it is sold.

The fair value of an comes into play when the asset is revalued, usually for a sale. Replacement value is similar to fair value as it is the market value of the asset at a given point in time.

7 0
3 years ago
An economist is interested in studying the incomes of consumers in a particular country. The population standard deviation is kn
ki77a [65]

Answer:

A. 232.6

Explanation:

Standard deviation of population = $1000

Z value for 90% confidence interval is 1.645

width = z * \frac{standard deviation}{\sqrt{sample size} }

width = 1.645 * \frac{1000}{\sqrt{50} } = 232.6

3 0
3 years ago
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