Answer:
2.27%
; 61.54%
Explanation:
Given that,
Sales/Total assets = 2.2x
Return on assets (ROA) = 5%
Return on equity (ROE) = 13%
Therefore,
Return on assets = Profit margin × Assets turnover
0.05 = Profit margin × 2.2
Profit margin = 0.05 ÷ 2.2
Profit margin = 0.0227 or 2.27%
Percent of total assets is from equity:
= Return on assets ÷ Return on equity
= 0.05 ÷ 0.13
= 0.3846 or 38.46%
Hence, the debt is as follows:
Debt = Assets - equity
= 1 - 0.3846
= 0.6154 or 61.54%
Answer:
d. net income for the year will be overstated.
Explanation:
The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are
Debit Prepaid rent
Credit Cash account
On subsequent use of the rent, the required entries are
Debit Rent expense
Credit Prepaid rent
As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.
Answer:
$10,070
Explanation:
The true cash balance is the balance having considered the effect of the transactions that have happened but are yet to be captured in the books.
Reviewing the transactions,
- bank service charges of $50 - This will be deducted from the book balance
- Two credit memos are included in the bank statement: one for $940, which represents a collection that the bank made for Owen, and one for $60, which represents the amount of interest that Owen had earned on its interest-bearing account in June - Both will be added to the book balance
Hence the true cash balance
= $9,120 - $50 + $940 + $60
= $10,070
Answer:
Assume all markets are in long-run equilibrium. Market price in a duopoly would be <u>greater than or equal to</u> the market price in a monopoly, and <u>less than</u> or equal to the market price in a competitive market.
Explanation:
That is the logical answer to the question about markets that are in long-run equilibrium.
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