Answer: The answer is C. Dorothy, who works in her small bakery for less than 30 hours a week.
Explanation: A part-time business can't exceed <u>35 hours a week.</u>
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<u>Solution and Explanation:</u>
calculating the increase in the net operating income is as follows:
S.no Particulars and explanation Amount
1. Sales ( $268000 + 84000 ) 352000
2. Contribution ( 1 multiply with 40 percent) 140000
3. Fied expense ( $119200 plus $6200 ) 125400
4. Net operating income ( 2 step minus 3 step) $14600
therefore, net operating income increased by $ 14600 plus $12000
Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.
Answer:
$29,050
Explanation:
The computation of the residual income is shown below:
Residual income = Net operating income - Minimum required income
= $83,000 - $53,950
= $29,050
Here
Minimum required income = Average operating assets × Minimum required rate of return
= $415,000 × 13%
= $53,950
This should be the answer and the options provided are wrong
<span>Objective, Introduction, Instruction, Practice, and Conclusion</span>
Answer:
The return on assets and debt/equity ratio does not change
Explanation:
An operating lease does not affect assets and liabilities. From the formula:
Equity = Assets - Liabilities, since both assets and liabilities are not affected (they remain unchanged) therefore the equity is also the same.
The debt/ equity ratio = total liabilities/total equity. Since liabilities and equity remain unchanged, therefore The debt/ equity ratio is the same.
Also the return of assets (earnings/assets) remain the same
