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3 years ago

The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:

Business

1 answer:

WINSTONCH [101]3 years ago

3 0

Answer:

Return on equity.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time

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Kim Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old E

Ulleksa [173]

Answer:

Kim Inc.

The net advantage (disadvantage) of replacing the old equipment with the new equipment is:

= $7,500.

Explanation:

a) Data and Calculations:

Old Equipment New Equipment

Purchase price $262,500 $450,000

Accumulated depreciation 95,000 0

Annual operating costs 300,000 245,000

Total operating costs for 10 years 3,000,000 2,450,000

Salvage 92,500 0

Total incremental cost $2,907,500 $2,900,000

b) The net advantage obtained by Kim for replacing the old equipment with the new equipment is $7,500 ($2,907,500 - $2,900,000). Note that the purchase price of the old equipment with its accumulated depreciation are not relevant costs. This case is worked out without taking into account the time value of money. Assuming that the present value of the cash flows was computed, a different result and conclusion would be reached.

4 0

3 years ago

An individual purchased a fixed annuity with flexible premiums. When she annuitized the policy, she chose the Life Income 10-Yea

Dvinal [7]

Answer:

The beneficiary should receive 6 more years of payment.

Explanation:

An annuity certain option guarantees that the insured or his/her beneficiaries will receive payments for a minimum period of time in case the insured dies.

In this question the certain option was 10 years, during the first 4 years the insured received his/her annuity payments, but once the insured passed away, his/her beneficiaries will continue to receive payments until the 10 year period ends (6 more years).

5 0

3 years ago

GRZ Inc. purchased a customized delivery truck in January 2018 for $70,000. They plan to use this truck for 7 years, and the com

asambeis [7]

Answer:

The correct answer is A) $2.800

Explanation:

Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:

Finding the depreciable cost: $Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000$
Finding the depreciation per year: $Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000$
Finally, the depreciation tax shield for 2018: $Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800$

7 0

3 years ago

In the event of a robbery, what must you do?<br> Select all that apply.

maria [59]

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Question: In the event of a robbery, what must you do?

--------------------------------------------------------------------------------------------------------------Answer: In the event of an armed robbery, instruct your staff to remain calm, alert and observant. Panic only heightens the danger involved. Emphasize that their safety and welfare is your primary concern. Money can be replaced, human life cannot. Here are a few tips to help educate and protect your staff in the unfortunate event of a robbery.

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7 0

3 years ago

A manufacturing company has a beginning finished goods inventory of $15,400, raw material purchases of $18,800, cost of goods ma

cupoosta [38]

Answer:

$30,900

Explanation:

The beginning finished goods is $15,400

Raw materials purchased is $18,800

The cost of goods manufactured is $34,100

Ending finished goods is $18,600

Therefore the cost of gods can be calculated as follows

= 15,400+34,100-18,600

= 49,500-18,600

= 30,900

Hence the cost of goods sold by the company is $30,900

8 0

3 years ago