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3 years ago

9

All of the following will improve a firm's liquidity position except: Answer A)increase long-term debt and invest the money in m

arketable securities B)increase accounts receivable turnover C)increase inventory turnover D)increase the average collection period

1 answer:

user100 [1]3 years ago

7 0

Answer:

i think answer B is right

but i am not sure

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Financial data for Stirling Inc. for last year are as follows:

Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

<u><em>profit margin:</em></u>

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

<u><em>Assets turnover:</em></u>

$\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}$

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

<u><em>ROI</em></u>

$\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}$

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

<u>Residual Income:</u>

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

8 0

3 years ago

The factor-price equalization theory and transportation costs Which of the following statements about the factor-price equalizat

abruzzese [7]

Answer:

B and C

Explanation:

The correct statements about the factor-price equalization and the effects of transportation costs are:

Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
Transportation costs prevent product prices from equalizing.

6 0

3 years ago

The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

JulsSmile [24]

Based on the economic and financial analysis, the main reason for considering <u>nonconstant growth</u> in dividends is to allow for "<u>Supernormal</u>" growth rates over "<u>some finite length of time</u>."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is <u>supernormal</u> and <u>some finite length of time</u>.

Learn more here: brainly.com/question/13223703

7 0

3 years ago

Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss w

Brums [2.3K]

Answer: Hello your question is incomplete attached below is the complete question

answer:

1) attached below

2) Net operating income ( loss ) = - $104 million

Explanation:

Pretax operating loss = - $137 million

Non deductible Losses ; $5 million fine paid in 2021 ,

estimated $12 million loss from contingency that will be tax deductible in 2022

Enacted tax rate = 25%

Taxable operating income = - $120 million

attached below is the solution

4 0

2 years ago

Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim

jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr, $560

To Deferred revenue $560

(Being cash is received)

2. Deferred revenue $336

To Sales revenue $336

(Being 12 months sales service is recorded)

3. Cost of goods sold $280

To Inventory $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12) $28

To Service revenue $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

3 0

2 years ago