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nataly862011 [7]
2 years ago
10

The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in Augus

t. The minimum required rate of return for performance evaluation purposes is 19%. What was the West Division's residual income in August
Business
2 answers:
MrRissso [65]2 years ago
7 0

Answer:

Correct answer is $45,600

Explanation:

Average operating assets x Minimum required rate of return= $45,600 $240,000 * 19% = $45,600

professor190 [17]2 years ago
5 0

Answer: See explanation

Explanation:

West Division's residual income in August would be calculated as the difference between the Net Operating Income and the Minimum Required Return.

= $42,200 – ($240,000 x 19%)

= $42,200 - $45,600

= $(3,400) Negative

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Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia
erastova [34]

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

                   = $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

                                        = $53,900

total assets = current assets + net fixed assets

                   = 53,900 + 391,500    

                   = 445,400

Then:

ROA = 53,900/445400

        = 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

                                 = 0.041763/0.958237

                                 = 4.36%

Therefore, The internal growth rate is 4.36%

7 0
3 years ago
Walmart has exceptional logistics, but in 2014, Walmart was criticized for unusual shortages. Customers complained, saying they
iVinArrow [24]

Answer:

It is Control the inventory process (B)

Explanation:

Control the inventory process : Unusual shortage of products on Walmart shelves is an evidence of poor inventory control system.

The deficiencies in the system must be identified and then appropriate corrective control system to address them must be put in place.

A system that prevent stock-out on the shelves must be adopted and its compliance must be enforced.

5 0
3 years ago
(True) or (False)? Goods in-transit to a buyer should be counted as buyer’s inventory if they were shipped FOB destination.
Artemon [7]

Answer:

Correct answer is FALSE

Explanation:

FOB Destination transfers ownership of the goods to the buyer after the goods reached to its destination (either in the buyer’s warehouse or any place stated in the contract to be delivered). Thus, goods in-transit under FOB destination still belongs to the seller and not to the buyer yet. Moreover, it should not be included to buyer’s inventory because the title of ownership of the said goods still belongs to the seller at the time of transit.

5 0
3 years ago
These are the general term for the factors of production used in the making of goods and services.
Margaret [11]

These include any resource needed for the creation of a good or service. The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.

4 0
3 years ago
Read 2 more answers
Total spending in an economy is the sum of: personal consumption plus gross private investment plus government spending plus net
vichka [17]

Answer:

The correct answer is personal consumption plus gross private investment plus government spending plus net exports.

Explanation:

Total spending in an economy is the sum of personal consumption plus gross private investment plus government spending plus net exports.

Personal consumption expenditure is spending by consumers on goods and services. Gross private investment is the expenditure by the businesses.  

Government spending is the expenses incurred by the government. Net exports are the amount spend on the purchase of goods and services from abroad.

All these together make total spending in an economy.

6 0
3 years ago
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