Answer:
Time value of money
Explanation:
The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.
Answer:
$157,584.
Explanation:
Belotti would record depletion in 2021 = $273,600 * (4,900/36,000)tons
Belotti would record depletion in 2021 = $273,600 * 0.13611
Belotti would record depletion in 2021 = $37,239.70
Depletion per unit = ($273,600-$37,239.70)/14,700 tons
Depletion per unit = $236,360.3 / 14,700 tons
Depletion per unit = $16.08
Belotti would record depletion in 2022 = 9,800 tons * $16.08
Belotti would record depletion in 2022 = $157,584.
Answer:
a. Return on Investment
ROI= Operating income/Average invested assets
Beverage Division ROI = 358 / (2,680+2,602) /2
= 358 / 2,641
= 0.13555
= 13.56%
Cheese Division ROI = 643 / (4,473 + 4,409)/2
= 643 / 4,441
= 0.14478
= 14.48%
b. Profit margin
Profit Margin= Operating income / Sales
Beverage Division = 358 / 2690
= 0.13309
=13.31%
Cheese Division = 643 / 3934
= 0.16345
= 16.35%
c. Investment turnover for the year
Investment turnover = Sales / Average invested assets
Beverage Division = 2690 / 2641 = 1.02
Cheese Division = 3934 / 4441 = 0.89
d. Beverage$'m Cheese'million
Average Assets 2641 4441
Targeted return 8% 8%
Target income 211 355
Residual Income Beverage'm Cheese'm
Operating income 358 643
Less: Target income 211 355
Residual Income 147 288
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders.
Answer:
5
Explanation:
Interest earned ratio is a financial ratio used to measure a company's ability to meet its obligations to the providers of the long term debt based on earnings.
It is measured as the earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.
Earnings before interest and taxes (EBIT) = $1,000,000 + $600,000 + $400,000 = $2,000,000
Farrar Cakes’ times interest earned ratio
= $2,000,000/$400,000
= 5