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
Answer:
Option (B) is correct.
Explanation:
Given that,
Selling price per unit = $48
Desired profit margin on sales = 12.5%
Flyer’s current full cost for the product = $44 per unit
Profit = Selling price × profit margin
= $48 × 12.5%
= $6
Target cost of unit = Selling price - Profit
= $48 - $6
= $42
Answer:
D. FreshDirect shares warehouse space with farmers and livestock producers
Explanation:
FreshDirect does not share its own resources with the supplier in order to get a lower rate. If it does that , he would be practicing a business model which has different entities attached to each other to work for greater goal.
Here, this is not the case. FreshDirect tends to look for out of the box ways to lower supplier cost but "FreshDirect shares warehouse space with farmers and livestock producers" is not one of those ways.
Answer:
The loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000
Explanation:
By using the given information which is mentioned in the question, first we have to calculate the book value of equipment.
So, the book value of the equipment is equals to
= Cost price - accumulated depreciation
= $120,000 - $66,000
= $54,000
Now we can calculate the loss or gain on sale of equipment which is equals to
= Sale price - book value
= $45,000 - $54,000
= - $9,000
Since, the amount shows negative which means the company has suffered a loss of $9,000 on equipment
The other things like net income of 2017 and 2018 is irrelevant because it tells the net income of overall company not for equipment. So, it is not being considered while computation
Hence, the loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000
Answer:
Convert the bonds into 20 common stocks.
Explanation:
the investor has 3 options:
- sell the bond at $1,000 x 1.005 = $1,005
- sell the bond to the corporation at $1,000 + $10 = $1,010
- convert the bond into 20 common stocks = 20 x $51 = $1,020
the option that yields the highest return is to convert the bonds into common stocks.
