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viktelen [127]
3 years ago
12

Zero Corp's total common equity at the end of last year was $350,000 and its net income was $70,000. What was its ROE

Business
1 answer:
Arturiano [62]3 years ago
5 0

Answer:

ROE = 20%

Explanation:

Given:

Common equity = $350,000

Net income = $70,000

Find:

ROE

Computation:

ROE = [Net income/Common equity]100

ROE = [$70,000/$350,000]100

ROE = 20%

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Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0
3 years ago
Which of these statements is false? A company comparison should not be made with industry averages if the company does not clear
ValentinkaMS [17]

Answer:

A company comparison should not be made with industry averages if the company does not clearly fit into any one industry.

Explanation:

In Business management, it is important to note that many companies will not clearly fit into any one industry.

Hence, when using industry averages, it is often necessary to use an industry that the firm best fits rather than randomly picking up any industry. Additionally, the analysis of an organization's financial statements would be more meaningful if the results are compared with industry averages and with results of competitors.

Any financial service sought after, should use its best judgment by analyzing and identifying which industry the firm best fits.

5 0
3 years ago
In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a
Tems11 [23]

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
  2. Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

6 0
3 years ago
The definition of input , out put and processing please
goldfiish [28.3K]

The best definitions of input, output and processing are as follows:

  • Input refers to the resources that are used up in production to create further value, finished goods, or more input for further processing.

  • Processing is the intervening activity that changes the input to output.

  • Output is the product of processing input or resources.  Output is typically the finished outcome from a processing activity.

<h3>What is the relationship between input, output, and processing?</h3>

Processing is at the center of input and output.  

Processing involves changing, manipulating, or transforming input resources into output or finished products.

Thus, the definitions of input, output and processing are as given above.

Learn more about input, output, and processing at brainly.com/question/25250720

5 0
2 years ago
Steve walker was happy with his new personal computer. it had all the features he wanted, including a color monitor and cd-rom,
Sidana [21]
He was experiencing buyers remorse
6 0
3 years ago
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