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weqwewe [10]
3 years ago
8

Last year Harrington Inc. had sales of $325,000 and a net income of $17,000, and its year-end assets were $230,000. The firm's t

otal-debt-to-total-assets ratio was 45.0%. Based on the DuPont equation, what was the ROE? 13.02% 13.44% 13.83% 14.00% 14.80%
Business
1 answer:
choli [55]3 years ago
6 0

Answer:

13.44%

Explanation:

Debt to total assets = Total Debt / Total Assets

45% = Total debt / $230,000

Total Debt = $230,000 x 45% = $103,500

As we know

Assets = debt + Equity

$230,000 = $103,500 + Equity

Equity = $230,000 - $103,500 = $126,500

Return on Equity is the measure of financial performance which can be calculated by dividing net income for the year by total shareholder's equity.

Return on equity = Net income for the year / Shareholders equity

ROE = $17,000 / $126,500 = 0.1344 = 13.44%

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The answer is $275.02
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3 years ago
DEF Ltd is a global leader in the manufacture, integration and support of networking and telecommunications systems. The company
Serjik [45]

Some of the challenges of this company include lack of control over financial reporting in all branches, and inaccurate data to make decisions for next years.

DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:

  • Inaccuracies related to revenue and deferred revenue.
  • Lack of documentation of some transactions.

Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:

  • Lack of control in all branches: DEF Ltd seems to be a big company with multiple branches around the world. This makes it difficult for the company to control all financial records even if employees are educated about the process through seminars.
  • Inaccurate data for next periods: Considering there are lots of inconsistencies and some of the reports are incomplete, it is likely even after the review process the company does not have complete information about the previous transactions or revenues. This can affect future projections and decisions.

Note: This question is incomplete; here is the missing part:

Using the disclosures above as a starting point, brainstorm about the challenges regarding internal controls and that a company may face in doing business internationally?

Learn more in: brainly.com/question/10916805

5 0
2 years ago
On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0
RoseWind [281]

Answer:

Bad Debt Expense ($40,000 - $3,200)  $36,800

           To Allowance for Doubtful Accounts   $36,800

(Being the bad debt expense is recorded)

Explanation:

The adjusting entry is shown below:

Bad Debt Expense ($40,000 - $3,200)  $36,800

           To Allowance for Doubtful Accounts   $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the value of the assets

And since there is a credit balance so the same is deducted from the account receivable

5 0
3 years ago
All of the following are disadvantages of outsourcing a product​ except: A. outsourcing allows the company to focus on its prima
devlian [24]

Answer:

A. outsourcing allows the company to focus on its primary function

Explanation:

  • The companies outsource to cut the labor costs and these include the salaries and the personal overheads and primarily used by these companies to focus on the core aspects of business.
  • To delegate the company's business to third parties and to the external agencies and improve the quality production and innovation.
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3 years ago
Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the f
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Answer:

B. One year from now, Stock X's price is expected to be higher than Stock Y's price.

Explanation:

Hope it helped...Please mark brainliest. Have a nice day!

7 0
3 years ago
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