Answer:
Investment Y
Explanation:
Investment Y pays compound interest, which earns interest compared to simple interest over time. In compound interest, the interest earned in the period is added to the principal, thereby increasing the principal amount for in the next period. It means that the interest earned also earns interest.
Compound interest increases the principal amount at the beginning of every period. As a result, the interest earned will be higher every year. Investment X earns simple interest. In simple interest, the principal amount remains is constant throughout the investment period. The interest in simple is constants throughout the period. Compound interest has higher returns compared to simple interest.
Answer:
d. decrease retained earnings $1.88 million and increase liabilities by $1.88 million
Explanation:
The mentioned things above are an example of commercial
drugs. It is because a commercial drugs is a way of having transformation to be
processed in order to create a new or different substance which are house hold
cleaning products, glues and even pesticides for they are processed to be
created as a new substance for a specific use.
Answer:
Income Statement for Swing Hard Incorporated for the month ended February 28.
Sales $20,935
Less Expenses
Wages ($2,600)
Electricity ($1,420)
Net Income / (Loss) $16,915
Net profit margin = 80.8%
Explanation:
<em>Income Statement for Swing Hard Incorporated for the month ended February 28.</em>
Sales ($20,600 + $155 + $180) $20,935
Less Expenses
Wages ($2,600)
Electricity ($1,420)
Net Income / (Loss) $16,915
<em>Company's net profit margin</em>
Net profit margin = net profit / sales × 100
= $16,915 / $20,935 × 100
= 80.8%
Note
The Income Statement is always prepared on <em>accrual basis of accounting</em> meaning Revenues and Expenses must the recorded when they occur or incur not as when they are paid.
Answer: 2.5
Explanation:
The Turnover (Asset Utilization) is calculated by dividing the business Turnover (Sales) by it's Assets.
We have the amount of assets (Investment). Now we have to calculate the Sales.
The Net Income was 12.5% of $100,000 so solving for that would be,
= 0.125 * 100,000
= $12,500
$12,500 was the Net Income.
It was said that the Net Income was 5% of sales so using algebra we have,
12,500= 0.05x
x = 12,500/0.05
= $250,000
With sales of $250,000 we can calculate the Turnover as,
Asset Turnover = Sales / Assets( Investment)
= 250,000/100,000
= 2.5
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