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3 years ago

A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:

Business

1 answer:

vivado [14]3 years ago

3 0

Answer: 39%

Explanation:

From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.

To calculate its profit margin, we have to divide the net income by the net sales. This will be:

= 7605/19500

= 0.39

= 39%

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. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do

Dmitriy789 [7]

Answer:

The question is incomplete, find complete question in the attached.

The receivables turnover for the current year is 9.02 times while average days sales in receivable is 41 days

Explanation:

The formula for computing receivables turnover ratio is given as:

Net credit sales/average accounts receivable,where average receivables is the opening plus closing receivables divided by two.

Net credit sales=$35,657

Average receivables =($3495+$4415)/2=$3955

Receivable turnover ratio=$35657/$3955

=9.02

Average days sales in receivable=number of days in the year/receivable turnover ratio

Average days sales in receivable=365/9.02

=40.47 days approx 41 days

The average days sales in receivable implies the average number of days it takes receivables to settle their accounts

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3 years ago

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? p

Marta_Voda [28]

Answer:

human

Explanation:

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2 years ago

In the last few weeks, Steve has stopped chatting with his coworkers during work. He takes short lunch breaks, and he is complet

diamong [38]

This is a concentrated productive worker

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3 years ago

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.44 percent paid semiannually and sell for $1,930.36. The bonds hav

tigry1 [53]

Answer:

Current yield=5.6%

Explanation:

The current yield is the proportion of the current price of a bond earned as annual interest payment.

Current yield = annual interest payment/bond price

Annual interest payment = coupon rate × face value

= 5.44% × $2000

= $108.8

Current yield

= annual interest payment/price

= $(108.8/1,930.36) × 100

= 5.6%

Note we used the annual interest payment nothwithstanding that interests are paid semi-annually

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3 years ago

Biden Resorts Company currently has 0.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has

frutty [35]

Answer:

Hence, the weighted average cost of capital is 15.87%.

Explanation:

We have to find current weights,

Value of equity = Shares x Share price = 0.2 x 10 = $2 million

Face Value of Bonds FV = $1 million

Semi annual coupon P = 1 x 8% / 2 = $0.04 million

Number of coupons remaining n = 5 x 2 = 10

Semi annual yield r = 13.65% / 2 = 6.825%

Value of Debt = Px [1 - (1 + r)-n] / r + FV / (1 + r)n

= 0.04 x [1 - (1 + 0.06825)-10] / 0.06825 + 1 / (1 + 0.06825)10

= $0.8 million

Total Value = 2 + 0.8 = $2.8 million

Weight of Debt = 0.8 / 2.8 = 28.57%

Weight of Equity = 2 / 2.8 = 71.45%

Amount of Debt to be raised = Weight of debt x Capital

= 0.2857 x 7.5

= $2.14 million

Since the amount of debt to be raised is less than $2.5 million, the yield will be 13.65%

Cost of Equity = Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 3% + 2.2 x (10 - 3)

= 18.4%

The weighted average cost of capital:-

WACC = Weight of Debt x Cost of Debt x (1 -Tax Rate) + Weight of Equity x Cost of Equity

= 0.2857 x 13.65% x (1 - 0.3) + 0.7145 x 18.4%

= 15.87%

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3 years ago