Answer:
a. Gross profit rate = Gross profit / sales
= <u> $710,000 * 100</u>
$1,230,000
= 57.72%
b. <u>Supreme Operating Income </u>
Gross Profit $710,000
Operating expenses <u>(440,000)</u>
Operating Profit <u> 270,000</u>
<u />
c. Return on Asset = Return/ Average Asset
= <u>$390,000 * 100 </u>
$4,000,000
= 9.75%
d. Return on equity = Return / Average equity
= <u>$390,000 * 100 </u>
$2,400,000
= 16.25%
e. Price-earnings ratio = Market price per share / earnings per share
= $88/ $4
= 22
Explanation:
Computation of Gross profit
$'000
Net Sales 1,230
Cost of goods sold <u>(520)</u>
Gross Profit 710
Answer: The assets that are classified as plant assets on the company's balance sheet include :
(1) the showroom building, a separate building used to service customer cars, and various parking lots.
Plant asset is known as the long-term fixed asset that is used to bring forth or sell commodities and services for the institution. These assets are tangible and are expected to produce economic benefits for the organization.
Answer:
C, gets larger without limit.
Explanation:
A decrease in discount rate ensures that financial institutions can borrow money at a cheaper rate. Since the lending rate of banks are decreased, the amount of available loans/credit is increased which in turn increases the lending activity of the financial institutions.
Simply put, a discount in rates of funds borrowed by a financial institution helps to increase the reserves of the institution as well as increase the supply of money in the economy.
From the question, a larger cash flow rate is obtainable from a decreased discount rates.
Cheers.
<span>In understanding and analyzing "demand," we focus on how much of a product the buyers are D. willing and able to buy.
It doesn't really matter whether customers want to buy something if they cannot afford it. This is why companies always try to make their products affordable so that most people can buy them. So, depending on how much money a person has, they will be allocate some of it to buy that particular product.
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