<u>Calculation of Return on Total Assets:</u>
Return on Total assets can be calculated using the following formula:
Return on Total Assets = Net Income / Total Assets
We can calculate Net income as follows:
Sales $2960
Less: Operating Costs $2675
Less: Interest charges $125
Income before tax = 160
Less: Tax (160*40%) = 64
Net Income = $96
Hence , Return on Total Assets = 96/2100 = 0.0457 =<u>4.57%</u>
Explanation:
what this means is it is asking what kind of job or career you want to be. an example is :
i want my career to be a doctor.
so basically this is just a fancy word for job.
Answer:
(A) The nine-month statement should first be annualized.
Explanation:
In accounting when preparing financial statements there is a standard period of financial statements that should be adhered to. The financial statements should be of the same duration. So comparing a nine month financial statement to a twelve month financial statement is against standard accounting practices.
Moreover it will not give a clear picture when comparism is done this way. For example if two companies both have income of about $1,000,000 and financial statements of nine and twelve months are compared. The company with nine months financial statement will show lower income than the one with twelve month statement, and this is not the reality.
So the nine month statement should be annualised to ease comparability.
The answer is a. decreases. When the interest rate goes up, the transaction demand for money goes down or decreases. It goes the other way around when interest rates go down, the transaction demand for money is high or increases. It happens simply because a consumer can get more products at a lower interest rate, the tendency is to purchase more.