Answer:
13.42%
Explanation:
The computation of return on equity is shown below:-
Debt = Assets × ( Debt to assets ratio)
$155,000 × 37.5%
= $58,125
Equity = Total Assets - Debt
= $155,000 - $58,125
= $96,875
Old Return on equity = Old Net Income ÷ Equity
=$20,000 ÷ $96,875
= 20.64%
New Return on equity = New Net Income ÷ Equity
= $33,000 ÷ $96,875
= 34.06%
Increased in Return on equity = New Return on equity - Old Return on equity
= 34.06% - 20.64%
= 13.42%
Markets for goods and services appear in a number of forms. in perfectly (or purely) competitive markets:
i. there are large numbers of independently acting buyers and sellers
ii. the good that is produced and traded is homogenous or standardized.
<h3>
What are competitive markets?</h3>
- A competitive markets, also known as an atomistic market, is defined by a number of idealizing conditions, which are together referred to as perfect competition, or atomistic competition, in the field of economics, notably general equilibrium theory.
- It has been shown that in theoretical models with competitive markets, a market will eventually find an equilibrium where the supply of all goods and services, including labor, equals the demand for all goods and services at the price in question.It would be Pareto optimal for this equilibrium to exist.
- The two types of efficiency that competitive markets offers are allocative and productive. In the near term, completely competitive marketplaces are not always productively efficient since output does not always occur where marginal cost equals average cost.
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Answer: The journal has been attached
Explanation:
The summary journal entries to record the following transactions for a company in its first month of operations has been attached.
Note that the work on process Inventory for (f) was calculated as the direct labor of 40000 multiplied by 125%. This will be:
= 40000 × 125%
= 40000 × 1.25
= 50000