1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
Who sets the minimum wage in ct
Bogdan [553]

Answer:

governor lamont  

Explanation:

i think but im not too sure

6 0
3 years ago
A book store had a $780,000 in sales revenue in 2000 and $590,000 in 2011. Assuming a constant EXPONENTIAL annual rate of decrea
Tamiku [17]

Answer:

The predicted sales revenue for 2017=$501,334.008

Explanation:

If something reduces at a constant rate over a specified period of time, then it can be represented using an exponential function as follows;

y=a(1-r)^x, or y=ab^x

where;

y=final sales revenue after the reduction

a=initial sales revenue before the reduction

1-b=reduction factor

x=time interval

In our case;

y=$590,000

a=$780,000

1-r=b=unknown

x=2011-2000=12 years

replacing;

590,000=780,000.b^12

b^11=590,000/780,000=0.756

b=0.756^(1/12)

b=0.977

r=1-0.977=0.023

Determine predicted sales revenue;

y=ab^x

y=sales revenue in 2017

a=sales revenue in 2011=$590,000

b=0.977

x=7 years

replacing;

y=590,000(0.977)^7

y=$501,334.008

The predicted sales revenue for 2017=$501,334.008

6 0
3 years ago
The maximum distance people are willing to travel for a service is
ladessa [460]

Answer:

Range

Explanation:

Range is the term which is used to describe the maximum distance which the consumers or customers are prepared or willing to travel in order to acquire the goods or to use a service.

It is because at some point, the expense or the inconvenience which will outweigh the requirement of the good.

And there are two types of range, one is small rage and other is large range.

Small range is the range which the people are willing to go only a distance which is short for the everyday consumers services like the pharmacies, grocery. While the large range is the range which will people travel the longer distances for the other services like ball game.

6 0
3 years ago
Helpp please 10 points!<br><br> 2. What are Internal and external factors.
Sindrei [870]
Hope that helps! If you look it up it's all online!

4 0
3 years ago
What are the main advantages and disadvantages of organizing a firm as a​ corporation? the advantages​ are: ​(select all the cho
Elena L [17]

I believe the answers are:

a. there is no limit on the number of owners a corporation may​ have, thus allowing the corporation to raise substantial amounts of capital.

They do this by selling shares on the stock market. When the shares is sold in this place, every individuals who can afford the price of  a single share are eligible to be part owner of the corporation.

b. the life of the business can continue beyond the death of any of the owners.

In corporations, when one of the owners somehow died, the ownership of the corporations would be transferred to the person whould receive the inheritence (usually immdediate family members)

c. the corporation can use the assets of the owners to pay for corporate liabilities.

This happen during the liquidation process. To pay for corporate liabilities, owners had to sell their assets with the equal value of their percentage of their ownership times the amount of liabilities.

4 0
3 years ago
Other questions:
  • A company in panama pays for a u.s. architect to design a factory building. by itself this transaction
    12·1 answer
  • Suppose you value a special watch at $100. You purchase it for $75. On your way home from class one day, you lose the watch. The
    10·1 answer
  • Tom Brown decided to purchase a new bike on installment loan the bike was $300 he agreed to pay $30 a month for 12 months what i
    15·1 answer
  • Write two to four sentences setting forth the long-term direction and strategic path that management intends to follow. The stat
    15·1 answer
  • In the current year, Hermanson Corporation reported net income of $240,000, paid dividends of $25,000 on common stock, and $40,0
    5·1 answer
  • Someone who wants to make a safe (not risky) investment might consider putting his or her money into _____ or _____. stocks, the
    15·2 answers
  • Corporation is considering a capital budgeting project that would require an initial investment of $350,000. The investment woul
    14·1 answer
  • One piece of evidence suggesting that the stock market is efficient is that most individual investors cannot earn returns that b
    15·1 answer
  • _____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportu
    14·1 answer
  • A firm has a marginal cost of $20 and charges a price of $40. the lerner index for this firm is? 0.33. 0.20. 0.50. 0.75.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!