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Kisachek [45]
3 years ago
13

New Doors Corp. has $375,000 of total assets, and it uses $187,500 of total shareholder's equity capital. Its sales for the last

year were $520,000, and its net income was $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity (ROE) up to 15.0%. What profit margin (PM) would the firm need in order to achieve the 15% ROE, holding everything else constant?
a. 5.41%
b. 8.11%
c. 9.41%
d. 10.71%
e. 12.66%
Business
1 answer:
Maslowich3 years ago
6 0

Answer:

Profit margin (PM) the firm needs in order to achieve the 15% ROE: a. 5.41%

Explanation:

The profit margin reflects a company's overall ability to turn income into profit, is calculated by formula:

Profit margin = Net income/Net sales

The return on equity (ROE) is calculated by following formula:

ROE = Net income/shareholder's equity

New Doors Corp. uses $187,500 of total shareholder's equity capital and gets the return on equity (ROE) up to 15.0%

Net income = ROE x Shareholder's equity = 15.0% x $187,500 = $28,125

Profit margin = $28,125/$520,000 = 0.0541 = 5.41%

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Answer:

$12 billion.

Explanation:

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Now, finding the value of intermediate goods purchased.

Intermediate goods= Total\ sales - Total\ value\ added

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7 0
3 years ago
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts
scoundrel [369]

Answer:

The amount of uncollectible accounts is calculated as follows:

Amount of uncollectible accounts to be adjusted = 6% * Account receivables

= 6% * $138,500

=$8,310

Therefore, amount of uncollectible accounts is $8,310.

Bad debt Expenses = Opening balance of allowance for doubtful account (Credit balance) - Uncollectible account

Bad debt Expenses = $8,310 - $1,005

Bad debt Expenses = $7,305

The journal entry to record allowance for bad debts is as follows:

Account Titles and Explanation                  Debit         Credit

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8 0
3 years ago
Requisitioning an OTC item to use for script fulfillment included
Nina [5.8K]

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A patient care provider may receive decision data from requisition fulfillment logic to aid in choosing one of a variety of fulfillment venues to fill a specific drug demand.

A requisition router may direct the pharmaceutical request to a particular fulfillment site among the many options.

In respect to the related medication requisitions that they have completed, the fulfillment sites may provide medication requisition metadata (such as information about the preparation and handling of medicine units) to a medication requisition database.

Therefore, scanning the price barcode in the QT exception screen. is the answer.

Learn more about Router:

brainly.com/question/14449935

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8 0
2 years ago
Give a concrete example of how the type of college you choose can impact your total costs.
Zanzabum

Answer:

Because you chose to go to college instead of working, your opportunity cost is actually the sum of your college expenses plus the money you could have earned had you chosen not to work.

Explanation:

There are five main categories of expenses to think about when figuring out how much your college education is really going to cost: tuition and fees, room and board, books and supplies, personal expenses, and transportation. You can control some of these costs to some extent.

7 0
3 years ago
XYZ Corp. recorded service revenues of $150,000 in 2016, of which $80,000 were on credit and $70,000 were for cash. Moreover, of
german

Answer: $75,000

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Net cash inflow = Cash inflow - Cash outflow

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6 0
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