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Genrish500 [490]
3 years ago
7

For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, it

s net income before taxes was $42,714, and its net income was $29,900. The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000. The company's return on equity for Year 2 is closest to:
a. 3.67%
b. 60.16%
c. 5.24%
d. 7.82%
Business
1 answer:
mixer [17]3 years ago
6 0

Answer:

Return on equity = Net income/Shareholders' equity x 100

                            = $29,600/$829,000 x 100

                            = 3.57%

The company's return on equity is closest to 3.67%

Explanation:

Return on equity is the ratio of net income to shareholders' equity. The net income = $29,600 and shareholders' equity = $829,000. The division of net income by shareholders' equity gives return on equity.

You might be interested in
For the most recent year, Triad Company had fixed costs of $190,000 and variable costs of 75% of total sales revenue, earned $58
poizon [28]

Answer:

The computations are as follows

Explanation:

a)  Before tax income  is

 = After Tax Income ÷ (1 - Tax Rate)

= $58,500 ÷ (1 - 0.35)

= $90,000

b) Total Contribution Margin

Contribution Margin = Fixed Costs + Before Tax Income

= $190,000 + $90,000

= $280,000

c) Calculation of Total Sales

Variable Cost is 75% of Sales

SO, Contribution Margin 25% of Sales

Contribution Margin = $280,000

25% of Sales = $280,000

Sales = $280,000 ÷ 25%

         = $1,120,000

d) Break Even Point in dollars

Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage

= $190,000 ÷ 25%  

= $760,000

We simply applied the above formula

8 0
3 years ago
What is guaranteed by an implied warranty for all products?
Ratling [72]
A. that the product will work as described for a reasonable amount of time
8 0
3 years ago
Which of the following (all other factors held constant) will cause an increase in a stock’s value?
Lady_Fox [76]

Answer:

B, a decrease in the stock's beta.

Explanation:

A stock's beta is the determination of the stock's volatility in comparison with the market.

Simply put, it is the determination of how easily a stock will crash. The lower the beta of a stock, the less likely it is to be volatile.

Mostly, stocks with a volatility below 1.0 is less volatile compared to stocks with a beta above 1.0.

The beta of a stock is calculated by finding the rate, the rate of return and the market rate of return of the stock. All of these above are to expressed as a percentage. Having gotten the percentages from above, the risk free rate is subtracted from the rate of return of the stock. After that, the risk free rate is also subtracted from the market rate of return.

The value from the first subtraction is divided by the value from the second subtraction.

Cheers.

6 0
2 years ago
In the current year, Don has a $55,000 loss from a business he owns. His at-risk amount at the end of the year, prior to conside
jeyben [28]

Answer:

False

Explanation:

It is false that In the current year, Don has a $55,000 loss from a business he owns. His at risk amount at the end of the year, prior to considering the current year loss, is $36,000. He will be allowed to deduct the $55,000 loss this year if he is a material participant in the business.

8 0
3 years ago
Read 2 more answers
Josh earns $8.25 per hour and works 28 hours per week how much money will Josh earn a year show your work will mark brainiest
Sunny_sXe [5.5K]
So it’s 8.25 times 28 =231 hours
And there are 356 days in a year so 356 times 231 =82236 and that’s the answer hope I helped and get brainiest answer!
4 0
3 years ago
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