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
vodomira [7]
3 years ago
8

The following information is from the 20X1 annual report of Weber Corporation, a company that supplies manufactured parts to the

household appliance industry. Average total assets $ 24,500,000 Average interest-bearing debt 10,000,000 Average other liabilities 2,250,000 Average shareholders' equity 12,250,000 Sales 49,000,000 Interest expense 400,000 Net income 2,450,000 Required: Compute Weber Corporation’s return on assets (ROA) for 20X1 using a combined federal and state income tax rate of 25% where needed. Compute the profit margin and asset turnover components of ROA for 20X1. Weber’s management believes that various business initiatives will produce an asset turnover rate of 2.25 next year. If the profit margin next year is unchanged from 20X1, what will be the company’s ROA?
Business
1 answer:
DENIUS [597]3 years ago
8 0

Answer:

ROA for 20X1= 10%

Profit margin for 20X1= 5%

Assets turnover= 2

ROA for the coming year= 11.25%

Explanation:

Weber corporation return on assets for 20X1 can be calculated as follows

ROA= Net income/Average total assets × 100

= 2,450,000/24,500,000 × 100

= 0.1 × 100

= 10%

The profit margin can be calculated as follows

= Net income/sales × 100

= 2,450,000/49,000,000 × 100

= 0.05 × 100

= 5%

The assets turnover ratio can be calculated as follows

= Sales/Average Total assets

= 49,000,000/24,500,000

= 2

The company ROA if when the turnover rate for next year is2.25 and the profit margin remain unchanged can be calculated as follows

= profit margin × assets turnover ratio

= 5% × 2.25

= 11.25%

You might be interested in
Goodwill represents the excess of the implied value of an acquired company over the
Paul [167]

Answer: Option A

                                           

Explanation: In simple words, goodwill refers to the additional value that an organisation have from its identifiable assets due to its operations over a period of time.

In other words, it can be defined as an intangible asset which an organisation creates over a period of time while establishing the brand image. These assets are not depreciated but are tested for impairment every year. For example brands like apple, Reebok and McDonald have high goodwill in the market which attracts customers towards them

Thus, from the above we can conclude that the correct option is A.

6 0
3 years ago
Legislation requires that all non-salaried employees who work more than 40 hours a week be paid over-time for the week. This leg
egoroff_w [7]

This legislation is called the Fair Labor Standards Act.

This act gives rights to United States workers. Among these rights are child labor laws, the requirement of employers to pay overtime to workers who work over 40 hours per week and also sets a minimum wage that must be paid to employees.

5 0
3 years ago
Read 2 more answers
Kingbird, Inc. receives a $11000, 9-month, 6% promissory note from Sunland Company in settlement of an open accounts receivable.
Scorpion4ik [409]

Answer and Explanation:

The journal entry at the time of receiving the note is as follows:

Note receivable Dr $11,000

         To Account receivable $11,000

(Being the note receivable is recorded)

Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets

6 0
3 years ago
In data mining, finding an affinity of two products to be commonly together in a shopping cart is known as:
adoni [48]

In data mining, finding an affinity of two products to be commonly together in a shopping cart is known as:

  • Association rule mining

<h3>What is Association Rule Mining?</h3>

This refers to the machine based learning method which aims to find similarities between variables in large databases.

With this in mind, we can see that when the affinity of two common products is used such as a shopping cart, in data mining, this is known as the association rule mining.

Read more about data mining here:

brainly.com/question/13954653

5 0
2 years ago
What is broad​ averaging, and what consequences can it have on​ costs?
mrs_skeptik [129]
 What is broad​ averaging, and what consequences can it have on​ costs? Broad averaging is when a company or organization spreads the cost of resources across different objects to help the individual products or services stay equal. When a company does this they are assigning the costs of resources uniformly to cost objects. Broad averaging directly relates to costs because they can mislead an organizations data reports by spreading out the costs inappropriately. <span>
</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • Anybody know how to do FIFO / LIFO Accountancy stuff?
    9·1 answer
  • In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.A
    15·1 answer
  • Abby starts up Bowls Bistro to serve and sell soups for workday lunches. Abby leases space in an office building owned by Carmen
    6·1 answer
  • Chittenden Enterprises has 600 million shares outstanding. It expects earnings at the end of the year to be $ 970 million. The​
    6·1 answer
  • Which describes a type of tax that people pay on money they earn?
    5·2 answers
  • Companies benefit from employee balance because, compared to poorly balanced employees, well balanced employees __________. a. S
    6·2 answers
  • You bought a 18-year, 7.2% semi-annual coupon bond today and the current market rate of return is 7.8%. The bond is callable in
    6·1 answer
  • Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government p
    11·1 answer
  • Why is a performance management system superior to a performance measurement system? because performance measurement systems are
    15·1 answer
  • William is preparing to file his tax return. Which two items are necessary to complete his tax return?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!