1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ra1l [238]
2 years ago
14

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together i

nformation in order to release a financial report. You have found the return on equity to be 16.1 percent. Sales were $1,780,000, the total debt ratio was .31, and total debt was $657,000. What is the return on assets (ROA)
Business
1 answer:
oee [108]2 years ago
7 0

Answer:

11.11%

Explanation:

The computation of the return on assets is given below:

But before that following calculations need to be done

Total assets = Total debt ÷ Total debt ratio

= $657,000 ÷ 0.31

= $2,119,354.839

Total equity = Total Assets - Total Debt

= $2,119,354.839 - $657,000

= $1,462,354.839

Net profit = Total equity × Return on equity

= $1,462,354.839 × 0.161

= $235,439.129

And, finally

ROA = Net profit ÷ Total Assets

= $235,439.129 ÷ $2,119,354.839

= 11.11%

You might be interested in
A real estate broker takes an exclusive right to sell listing from a seller for $400,000. A buyer makes an offer for $375,000, w
LuckyWell [14K]

Answer:

Based on this information, the purchase contract is probably <u>Void/Voidable</u> under the Truth in Lending Act (TILA) of 1968 is a United States

5 0
3 years ago
Kuzma​ Foods, Inc. has budgeted sales for June and July at $ 680 comma 000.00 and $ 720 comma 000.00​, respectively. Sales are 8
atroni [7]

Answer:

The budgeted Accounts Receivable balance on July​ 31 is $ 244,800.

Explanation:

Since the company sells 85% credit of which 60% is collected in the month of sale and 40% in the following month. This implies that where the sales for the month of June is $ 680,000, all of the credit sales for the month of June would have been collected by 31 July. Hence no receivables will be budgeted for considering June sales by 31 July.

For sales to be made in July budgeted at $ 720,000, 85% will be credit sales

This amounts to

Credit sales for July = 85% of 720000

                                  = \frac{85 * 720000}{100}

                                  = $ 612,000

60% of the credit sales in the month of July will be collected by 31 July while 40% will be collected in the following month hence,

Accounts Receivable balance on July​ 31

= 40% of 612000

= \frac{40 * 612000}{100}

= $ 244,800

6 0
3 years ago
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,
quester [9]

Answer:

 The impact of eliminating the backpack division

Particulars                                           Amount

Decrease in contribution margin      $480,500   ($950500-$470,000)

<u>Decrease in Expenses:</u>

Fixed expenses                                  <u>$208,800 </u>   ($70522,000*40%)

Decrease in Net operating income <u>$271,700</u>      (Financial disadvantage)

3 0
3 years ago
The tax withheld from your check each pay period will be 20 dollars. True False
strojnjashka [21]
False.... The amount of money taken out of a check for taxes depends on how much you're getting paid.
3 0
3 years ago
Read 2 more answers
Why might the unemployment rate underestimate the underutilization of labor​ resources? The unemployment rate might underestimat
DaniilM [7]

Answer:

marginally attached staff and​ part-time staff that hope on getting​ full-time jobs

6 0
3 years ago
Other questions:
  • Crunch Lite produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large
    13·1 answer
  • Kate is a busy student. She likes to run to stay healthy and fit. She doesn't shop all the brands because she knows what shoe is
    5·1 answer
  • True or false: if jacques's fire engines were a competitive firm instead and $160,000 were the market price for an engine, incre
    12·1 answer
  • High and unexpected inflation has a greater cost. True or False
    15·1 answer
  • When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product
    15·2 answers
  • Strong global competition can result in ____ in the United States.
    5·2 answers
  • An economic principle states that the lower the price of a product, the greater the quantity consumers will wish to purchase. Th
    14·1 answer
  • True or false one of the advantages of a home equity loan is that you can borrow money anytime up to the approved amount
    11·1 answer
  • On June 30, 2020, Pier1 Inc. issued 500 shares of $1 common stock for $15 per share. On June 30, 2020, Pier5 Inc. reacquired 100
    9·1 answer
  • Since stocks can be traded online, which purpose is best served by markets?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!