Question a)
The sum of the <u>Total assets</u> plus <u>total fixed assets</u> results in <u>total assets</u>.
Question b)
The division of <u>Net sales</u> over <u>total assets</u> results in <u>Asset Turnover</u>
Question c)
The subtraction of the <u>cost of good sold</u> from <u>net sales</u> is equal to the <u>gross margin</u>
Question d)
The subtraction of <u>Operating expenses</u> from <u>gross margin</u> results in the <u>Net Operating profits, before the taxes.</u>
Question e)
The subtraction of <u>Taxes</u> from <u>Net Profit before tax</u> results in <u>Net profit after taxes</u>
Question f)
The division of <u>Net profit after tax </u>over the <u>Net saves</u> gives you the <u>Net profit margin percentage.</u>
Question g)
The division of <u>Net profit Margin percent</u> over the <u>asset turnover </u>results in a <u>return on assets. </u>
 
        
             
        
        
        
Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x  $2 = $0.30
EOQ = √<u>2DCo</u>
                 H
EOQ = √<u>2 x 100,000 x $15</u>
                   0.30
EOQ = 3,162 units
2. Maximum inventory
    = Safety stock + EOQ
    = 1,500 + 3,162
    = 4,662 units
3. Average inventory
    = EOQ/2
    = <u>3,162</u>
          2
    = 1,581 units
4. Number of order
    = <u>Annual demand</u>
             EOQ
    = <u>100,000</u>
         3,162
   = 32 times
         
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by  holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
 
        
             
        
        
        
Answer:
14.58%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate) + weight of preferred equity x dividend yield
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
r= 3% + 1.1 x 8 = 11.8
equity = 0.4 x 11.8% = 4.72
d = 0.4 x 5 x (1 -0.21) = 1.58
p = 0.2 x 6 =  1.2
11.8 + 1.58 + 1.2 = 
 
        
             
        
        
        
Answer:
Option (C) is correct.
Explanation:
Given that,
Estimated overhead cost = $1,540,000
Estimated direct labors (in dollars) = $3,360,000
Estimated direct labor hours = 240,000
Actual overhead cost = $1,240,000 
Predetermined overhead rate:
= Estimated overhead cost ÷ Estimated direct labor hours
= $1,540,000 ÷ 240,000
= $6.42 per direct labor hour
 
        
             
        
        
        
Answer:
The net income will decrease and also the total assets will also decrease 
Explanation:
Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.
As the asset value is down the entry is asset (credit) and loss on asset (debit)
This will effect the net income as it will come down and total assets value also come down