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Viktor [21]
2 years ago
8

Assume J. K. Lumber increases its operating efficiency such that costs decrease while sales remain constant. As a result, given

all else constant, the__________.
A) equity multiplier will decrease.
B) return on assets will decrease.
C) profit margin will decline.
D) return on equity will increase.
E) total asset turnover will increase.
Business
2 answers:
Mars2501 [29]2 years ago
7 0

Answer:

D) return on equity will increase.

Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.

(1) Reduction in the cost of operations or production of goods and services

(2) increase in the price of the product etc.

If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.

m_a_m_a [10]2 years ago
4 0

Answer: D) return on equity will increase.

Explanation: Return on Equity (ROE) is a measure of management's ability to generate income from the equity available to it and can be said to be a return on asset.

Return on equity can be calculated by dividing net profits by the shareholders' average equity.

It can also be said to be a measure of the profitability of a business in relation to the equity, also known as net assets or assets minus liabilities.

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If all projects are assigned the same discount rate for purposes of​ evaluation, which of the following could​ occur? A. Highmin
Marysya12 [62]

Answer:

D. All of the choices could occur when using a single discount rate for all projects.

Explanation:

  • The discount rate is the rate of return that is used to discount the cash flows analysis in determining the present and future values of cash flows.
  • The discount rate also called the discounted cash flow analysis follows the valuation method based on the time concept of money the DFC helps to find out the variability of the project by calculating the present values by the discounted rate.
  • <u>Thus if all the projects are assigned the same discount rates then the aim of revaluation of the project choices will be the same for all the projects like investing in standards assets like the bonds. </u>
4 0
3 years ago
An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $329,500 45% weight Comparable 2: $
n200080 [17]

Answer:

$322,990

Explanation:

The reconciled estimated market value of the subject property will be calculated as follows:

($329,500 X 0.45) + ($320,900 X 0.35) + ($312,000 X 0.2) = $322,990

8 0
2 years ago
Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs
____ [38]

Answer:

The estimated rate based on labour hour==6

The  actual rate based on labour hour=6.08

The rate based on machine hour=24

The rate based on machine hour= 22.66

Explanation:

Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of  $249,280, actual direct labor hours of  41,000, and actual machine hours of 11,000.We can calculate the to apply .

The estimated rate based on labour hour=240000/40000=6

The  actual rate based on labour hour=249280/41000=6.08

The rate based on machine hour=240000/10000=24

The rate based on machine hour=249280/11000=22.66

4 0
3 years ago
Keyser Beverage Company reported the following items in the most recent year.
sladkih [1.3K]

Answer:

Net cash provided by operating activities = $49,730

Net change in cash during the year = $56,750

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES  $

Net Income     43,490

<em>Adjustments to reconcile net income to      </em>

<em>net cash provided by operating activities:      </em>

Depreciation on Fixed Assets    7,970  

<em>(Increase) Decrease in Current Assets:      </em>

Accounts Receivables    (10,700)

<em>Increase (Decrease) in Current Liabilities:     </em>

Accounts Payable     8,970

NET CASH PROVIDED BY OPERATING ACTIVITIES 49,730

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment    (9,000)

NET CASH USED IN INVESTING ACTIVITIES  (9,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Cash Dividends    (5,480)

Issue of notes payable    21,500

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 16,020

NET INCREASE (DECREASE) IN CASH   56,750

3 0
3 years ago
Engineers for The All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output
Trava [24]

Answer:

the average cost to reduce

Explanation:

In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.

This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.

7 0
2 years ago
Read 2 more answers
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