Answer:
car production would decrease or slow down rapidly due to most car parts being made of steel, such as steering and suspension parts
Answer:
dividends payout ratio = total dividends / net income
- dividends payout ratio 2016 = $630 / $685 = 0.9197 = 91.97%
- dividends payout ratio 2017 = $335 / $605 = 0.5537 = 55.37%
return on equity = (net income - preferred dividends) / average equity
- return on equity 2016 = ($685 - $45) / $2,925 = 0.2188 = 21.88%
- return on equity 2017 = ($605 - $45) / $2,825 = 0.1982 = 19.82%
Answer:
a. Yes, the company was profitable as it is evidence by the positive net profit margin.
b. Yes, increase in asset turnover increases shows that the operating assets generate higher amount of sales than the last year.
Explanation:
a. Net Profit margin is the percentage (%) of the revenue remaining after all the expenses are subtracted from the sales. It states the amount of profit which a business could extract from the aggregate sales.
Yes, the company is profitable in the year 2015 as the business has positive net profit margin and it is also evidenced.
b. Assets turnover ratio is the one which measures the efficiency of the company or the business and its ability to generate the sales from the assets through comparing the net sales with the average aggregate assets.
Yes, the increase (last year it was 1.29, but now it increases from 1.29 to 1.42) states that the operating assets will generate higher amount of sales from the last year.
Answer:
9 and credit
Explanation:
got it correct on edmentum/plato
Answer:
The correct option is (b)
Explanation:
Under net approach of recording discount, accounts receivable is debited by the amount less discount offered for making early payment. If payment is not received within the discount period, then discount amount is credited as 'sales discount forfeited' and recorded as income in profit and loss account.
Net approach is theoretically correct as it reflects true assets, in this case accounts receivables, in the balance sheet. It means that amounts debited or credited reflects historical cost principle.
