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3 years ago

Queen Products Company are presented below. All balance sheet data are as of December 31.

Business

1 answer:

jonny [76]3 years ago

7 0

Answer:

1. Asset turnover times. =1.31 times

2. Return on assets. = 7.9%

3. Return on common stockholders’ equity =10.5%

Explanation:

Asset turnover

Asset turnover indicates how efficient a business in the use of asset to generate sales. The higher the number of times the better.

Asst turnover = Turnover /Total asset

= 757,500/577,100

=1.31 times

Return on Asset

Return on asset is measure of the percentage of asset earned as income. The higher the better

Return on assets = Net income/Assets

= 45,500/577,100× 100

= 7.9%

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<em>Return on Equity</em>

This measures the proportion of equity investment earned as net income. The higher the better

Return on Equity = Net income/Equity

Return on commons stockholders

= 45,500/433,400 × 100

=10.5%

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J.C. Penney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of

Alchen [17]

Answer:

$71.80

Explanation:

First, calculate the present value (PV) of each year's dividend at 11% required return;

PV(of D1) = 1.65 / (1.11) = 1.4865

PV(of D2) = 1.97 / (1.11²) = 1.5969

PV(of D3) = 2.54 / (1.11³) = 1.8572

Find D4 = 2.54(1+0.08) = 2.7432

Next find Present value PV of terminal cashflows

PV(of D4 onwards) = $\frac{\frac{2.7432}{0.11-0.08} }{(1.11)^{3} } \\ \\ =\frac{61.9067}{1.3676} \\ \\ = 66.8601$

Add the PVs to find the current value of the stock today;

= 1.4865 + 1.5969 + 1.8572 + 66.8601

= 71.8007

Therefore, it is worth $71.80

4 0

3 years ago

If a country's economic data shows private savings of $990 million, government spending of $999 million, tax revenue of $699 mil

balandron [24]

Answer:

Investment is equal to 890 million.

Explanation:

Investment refers to the money that is used to produce goods. Investment can be calculated by adding the private savings, the public savings that is determined by subtracting the government spending to the taxes received and the trade deficit that refers to the imports minus the exports.

I= S+(T-G)+(M-X)

S= private savings

T= net taxes

G= government spending

M= imports

X= exports

I= 990+(699-999)+(600-400)

I=990-300+200

I= 890

4 0

3 years ago

Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers

matrenka [14]

So, 30 billions were borrowed and 50 billion were returned, which means that the amount returned was bigger than the amount borrowed. This means that the there is now less money in the circulation (on people's accounts, money being exchanged between people), which means that the money supply decreased.

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4 years ago

Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches

shutvik [7]

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = $20,000 Favorable (F).

Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads

= $305,000 - $300,000

= $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads

= ($5.00 × 64,000) - $300,000

= $320,000 - $300,000

= $20,000 Favorable (F)

3 0

4 years ago

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expen

Sedbober [7]

Answer:

a. $16,350.

Explanation:

The computation of the advertising expense to Department T based on departmental sales is shown below:

= Total advertising expenses × Department T Sales ÷ total sales

= $37,000 × $212,550 ÷ $481,000

= $16,350

By multiplying the total advertising expenses with the department T sales and then divide it by the total sales we can get the allocation amount

6 0

4 years ago