Answer:
14.7%
Explanation:
The computation of the return on investment is shown below:
As we know that
Return on Investment = Net Income ÷Average total assets × 100
where,
Net Income = Sales - Cost of goods sold - Operating expense
= $4,525,000 - $2,550,000 - $1,372,000
= $603,000
And, the Average total assets = $4,100,000
So,
Return on Investment is
= $603,000 ÷ $4,100,000 × 100
= 14.7%
Answer:
Sale of plant assets. If the company<u> sales an equipment it will receive cash </u>for it. We are not given with any information of this transaction not being in cash, so we should assume it was a sale in cash or cash equivalent.
Explanation:
<u>Conversion of bonds into common stock.</u> The bonds, which are outstanding and represent a promise to pay, are converted into common stock, this transaction doesn't involve cash.
<u>Issuance of common stock to purchase land. </u>The land is acquire in exchange of common stock, the company is not using cash. the owner of the land can later sold the stock to a third party but it won't affect the cash flow of the company.
<u>Issuance of debt to purchase equipment </u>Like singing a note to purchase a machine, no cash is involve.
Answer:
$19.95
Explanation:
Breakeven is where when total Cost = Total Revenue,
Let Selling Price = X
Total Revenue = Total cost
X*800 = 10,600+6.70*800
800x = 15960
Hence, selling Price(X) = 15960/800 = $ 19.95
Answer:
The correct answer is letter "A": Jeffrey will be solely responsible for making payments for his Social Security (FICA).
Explanation:
Independent contractors act like third party services working for an entity to render services for specific jobs. Independent contractors are not employees of the company who hires them for the job which implies the independent contractors are fully responsible for the payment of their own Social Security and Medicare taxes.
Answer:
Pb R
atio:
For company A = 2.375
For company B = 1.5
Explanation:
As per the data given in the question,
ROPI = NDA (RNOA - WACC)
For Company A 100 × (21%-10%)
For Company B 100 × (14%-10%)
Present value of ROPI = (ROPI ÷ (1+WACC)) ÷ [1-(1+g) ÷ (1+WACC)]
For Company A = (11 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $137.50
For Company B = (4 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $50
Market value of equity = NOA + present value of ROPI
= $100 + 137.50 = $237.50(Company A)
= $100 + $50 = $150(Company B)
Pb Ratio = Market value of equity ÷ Book value of equity
For company A = $237.50÷100 = 2.375
For company B = $150÷100 = 1.5
