Answer: B. ($11 million)
Explanation:
Out of the listed transactions there, these are the ones that can be taken out of Retained Earnings.
Loss on sale of equipment of $6 million
Preferred dividend of $2 million
Common dividend of $3 million
So calculating would be,
= - 6 - 2 - 3
= -$11 million
This means that Retained Earnings will reduce by -$11 million making option B correct.
Answer:
a. $640 billion.
Explanation:
Net investment = $225
Gross investment = $865
Depreciation = Gross investment - Net investment = $865 - $225 = $640
Therefore, on the basis of Table, depreciation is a. $640 billion.
Answer:
(A) it will affect the GDP Deflator.
(B) it will affect both the GDP deflator and the CPI
Explanation:
(A) The increase in prices of imports increase real GDP and also the GDP deflator as now the US will purchase less of these cars from china and therefore there will be less imports of this car from china, people will prefer buying local inexpensive cars which will in turn increase the GDP even more than before so therefore this scenario only affects the GDP deflator only as the formula for real GDP is the sum of consumption spending, government spending,government saving( investment) and (exports minus imports) so the less imports we get the more real GDP we get in the US economy.
(B) This will affect both GDP deflator and CPI because firstly this will touch on the exports which will increase and bring in more revenue for the US therefore increasing real GDP because the prices of the fishing product has decreased which will cause the US economy to increase. it will also affect the CPI because now prices of this product have fell therefore the CPI is also going to fall probably causing a deflation.
Answer:
7.3%; 12.17%; 0.6 times; 15.95%
Explanation:
Return on assets:
= Net Income ÷ Average total assets
= ($65,700 ÷ $900,000) × 100
=
7.3%
Profit Margin:
= Net Income ÷ Net Sales
= ($65,700 ÷ $540,000) × 100
= 12.17%
Asset Turnover:
= Net Sales ÷ Average Total Assets
= $540,000 ÷ $900,000
= 0.6 times
Return on Equity:
= Net Income before dividend ÷ Equity
= [($65,700 + $30,000) ÷ $600,000] × 100
= ($95,700 ÷ $600,000] × 100
= 15.95%
Answer:
6.37%
Explanation:
Annual yield is the annual dividend yield of a bond.
Formula for annual yield = Annual dividend amount / Current price of the bond
Annual dividend amount = Annual interest rate * Face value
= 6% * $5,000
= <u><em>$300</em></u>
Current price = 94.125 means that the bond price is 94.125% of the Face value
Current price = 0.94125* 5000 = <u><em>$4,706.25</em></u>
Therefore, annual yield = 300/4,706.25 = 0.0637 or 6.37%
