1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bond [772]
3 years ago
12

Peyton’s Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning o

f the year and $104 million at the end of the year. Calculate Peyton’s return on assets, profit margin, and asset turnover ratios.
Calculate Peyton's return on assets, profit margin, and asset turnover ratios.
Business
1 answer:
Lelechka [254]3 years ago
5 0

Answer:

See below

Explanation:

1. Returns on assets

= Annual net income ÷ Average total assets

Average total assets = beginning asset + ending assets ÷ 2

= ($80 million + $88 million) ÷ 2

= $84 miiliom

Return on assets = $13.4 million ÷ $84 million

Return on assets = $159.52

2. Profit margin

= Net income ÷ Net sales

= $13.4 million ÷ $114 million

= 11.75%

3. Assets turnover ratio

= Net sales ÷ Average total assets.

Recall Average total assets = $84 million

Average turnover ratio

= $114 million ÷ $84 million

= 1.36 times

You might be interested in
Select all that apply Describe data processing in accounting by selecting the correct statements below. (Check all that apply.)
lakkis [162]

Answer:

I. Batch processing accumulates source documents for a period of time and then processes them all at once.

II. Online processing enters and processes data as soon as source documents are available.

III. An advantage of online processing is timeliness.

IV. Accounting systems differ with regard to how input is entered and processed.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities. All the net income or cash from all operational business activities of a company is recorded as operating activities.

The correct statements that best describes data processing in accounting includes;

I. Batch processing accumulates source documents for a period of time and then processes them all at once.

II. Online processing enters and processes data as soon as source documents are available.

III. An advantage of online processing is timeliness.

IV. Accounting systems differ with regard to how input is entered and processed.

4 0
2 years ago
Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer service
Marrrta [24]
In this case, Costco offers <span>Self-service retailer
</span><span>Self-service retailer not only give the customers more freedom and leisure,  will help costco cut down the average wages needed because it need lesser employees so they could allocte it to increase the wages for the necessary employee.  </span>Currently, this model is used in almost every supermarket in all over the world.
5 0
3 years ago
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because
inn [45]

<u>Answer:</u>

<em>C) When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost. </em>

<em></em>

<u>Explanation:</u>

When benefits are zero, the firm is gaining adequate income to cater for the open door expense. Misfortunes bring about exit and discharge assets to stream to business sectors where there are benefits. Minimal income and negligible expenses are equivalent; some other yield levels will bring about decreased interest.  

Since quite a while ago running a focused balance, a firm is winning zero financial benefits as they won't keep on delivering because it could procure a superior return in another industry. Keep on creating because such interest relates to negative bookkeeping benefits.

8 0
3 years ago
Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as?
wariber [46]

Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as long-term liabilities.

Long-term liabilities, or non-present day liabilities, are liabilities which are due beyond a year or the normal operation period of the company. The everyday operation period is the amount of time it takes for a company to show stock into cash. long-time period liabilities, also referred to as long-term debts, are money owed a company owes 1/3-party creditors that are payable past twelve months. This distinguishes them from current liabilities, which a company should pay within one year.at the stability sheet, lengthy-term liabilities appear together with modern liabilities. together, these constitute everything a company owes. Price of these money owed is mandatory.on the stability sheet, lengthy-time period liabilities appear along side current liabilities. together, those represent everything a corporation owes. Price of these debts is mandatory.

Present day liabilities are liabilities that are due and payable within one year. Non-modern are liabilities which are due after a year or more. Contingent liabilities are liabilities which can or might not get up, relying on a certain event.

Learn more about Long-term liabilities here:-

brainly.com/question/15203427

#SPJ4

3 0
2 years ago
A US investor is considering investing in Mexico. The exchange rate today is $1 US buys 7.5 Pesos, the Mexican interest rate is
miv72 [106K]

Answer:

The future value of the investment in a year will be 129.23 dollars

Explanation:

We will convert the US dollars to Mexican Pesos

100 x 7.5 = 750

Then, we will apply the interest rate:

Principal (1+r) = Amount

750 x (1 + 0.12) = Amount

750 x 1.12 = 840

Now we convert the future value of the investment at the expected rate:

1 dollar = 6.5 pesos

We got 840 pesos

840/ 6.5 = 129,23 dollars

3 0
3 years ago
Other questions:
  • On January 1, 2016, Hess Co. purchased a patent for $1,904,000. The patent is being amortized over its remaining legal life of 1
    11·1 answer
  • In Step 1 of developing an EFE​ Matrix, how many opportunities and threats should be included in the full and narrow​ lists, res
    7·1 answer
  • Which of the following describes a self-managed team?A. Workers are trained to do all or most of the jobs in the unit.B. Workers
    12·1 answer
  • George offers to sell his car to Suzy for $10,000 on the coming Sunday, to which Suzy agrees. They write down the details on a p
    7·1 answer
  • Sam has taxable income of $350,000 dollars. Sam's nephew Adam has taxable income of $3,500. What federal income tax rate applies
    12·1 answer
  • You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifical
    13·1 answer
  • One employee is in charge of the following activities at a drive-through of a bank: Activity Activity Time per Customer Greet cu
    10·1 answer
  • Which of these will most likely have a positive effect on your lifestyle?
    8·1 answer
  • The shona of zimbabwe organized to resist european imperialism under the leadership of?
    7·1 answer
  • assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 pe
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!