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DochEvi [55]
2 years ago
5

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $13.8 million, gross profit of $8.70 million, EBIT of $

6.9 million, net income available to common stockholders of $4.5 million, and common stock dividends of $2.5 million. The 2018 year-end balance sheet listed total assets of $53.8 million and common stockholders' equity of $22.3 million with 2.0 million shares outstanding.
1. Calculate the profit margin.
2. Calculate the basic earnings power.
3. Calculate the return on assets.
4. Calculate the return on equity.
5. Calculate the dividend payout.
Business
1 answer:
Margarita [4]2 years ago
5 0

Answer: See explanation

Explanation:

1. Calculate the profit margin

Profit Margin = (Net Income/Net Sales) × 100

Profit Margin = (4,500,000/13,800,000) × 100

Profit Margin = 3.26 × 100

Profit margin = 32.6%

2. Calculate the basic earnings power.

Gross Profit Margin:

= Gross Profit/Net Sales × 100

= (8,700,000/13,800,000) × 100

= 6.304 × 100

= 63.04%

3. Calculate the return on assets.

Return on assets= Net income/Total asset

= 4,500,000/53,800,000

= 0.0836

= 8.36%

4. Calculate the return on equity.

Return on equity = Net income/Equity

= 4,500,000/22,300,000

= 0.2017

= 20.17%

5. Calculate the dividend payout.

Dividend payout = Dividend/Net income

= 2,500,000/4,500,000

= 0.556

= 55.6%

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marishachu [46]

Answer:

Break-even point in dollars= $36,364

Explanation:

Giving the following information:

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

To calculate the break-even point in dollars for the firm, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]

weighted average selling price= (selling price* weighted sales participation)= $50

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (25*0.5 + 20*0.50)= $22.5

Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364

4 0
3 years ago
Your assistant wants to use secondary data exclusively for the current marketing research project. You advise him that the use o
Rudik [331]

Answer:

D) It is generally more expensive to obtain than primary data.

Explanation:

A) It may not exist.

Problem. Primary data may not yet be available due to its sensitivity of the primary data.

B) It may not be relevant

Problem. Published data may not be applicable to your region. For example published data for Asia might not be applicable to Africa.

C) It may not be impartial.

Problem. Primary data used to create the secondary data might not treated all rivals equally.

D) It is generally more expensive to obtain than primary data.

Not a problem. Secondary data is not expensive as compared to primary data.

E) It may not be current.

Problem. Primary data collected might be out of date thus can not be used recent decisions as many things would have changed.

7 0
3 years ago
Devin Company has the following data for their budget and actual performance. Actual Master budget Master Budget Variance Sales
snow_tiger [21]

Answer:

The operating income master budget variance 6687      Unfav

Explanation:

Devin Company

Actual Vs. Budget Performance Report

For the year

                              Actual          Master       Master Budget  

                          Performance   budget         Variance

Sales                   150,298         155,842            5544    Unfavorable

Variable Costs     65,548          63,937             1611      Unfav

Fixed Costs         12,007           12,475              468       Fav

Operating Income 72743          79430             6687      Unfav

 

The operating income master budget variance is unfavorable because actual operating income is less than the budget operating income .

When the actual sales revenue is less than the budgeted revenues the variance is unfavorable.

When the actual costs are more than the budgeted costs the variance is unfavorable, and favorable when the actual costs are less than the budgeted costs.

6 0
3 years ago
Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the co
BaLLatris [955]

Answer:

The correct answer is C

Explanation:

NCI stands for the Non-controlling interest which also called as the minority interest, it is defined as the position of ownership where the shareholder owns outstanding shares that is less than 50% and has no control on the  decisions.

Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.

7 0
3 years ago
Drag each label to the correct location on the image.<br> Identify the features of stocks and bonds.
andre [41]
Stock;
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bonds;
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