Answer:
b. Asset Turnover &
d. Profit margin.
Explanation:
Return on asset (ROA) simply shows a percentage of how profitable companies assets are in generating the revenue. It is calculated as:
However, if we further break it down, we can write it as follows:
Both formulas Represent the same things.
But, the ratio of Net income to Sales is known as the Profit margin- A degree to which company makes money. Here, we can see how the ROA can be broken down in terms of profit margin.
Also, the ratio of Sales to Total asset is know as the Asset Turnover- a measure of company's use assets in generating the sales.
Hence, we can say that the ROA can be dis aggregated to reveal the Asset Turnover and the Profit margin.
Answer:
$90,000 and $86,000
Explanation:
In year 1, Lawrence Corp. purchased equipment for $100,000. Lawrence uses straight-line depreciation over a 10-year useful life with no residual value for financial reporting purposes.
In year 1, tax depreciation was $14,000. At the end of year 1, the carrying value for accounting purposes is $90,000, and the tax basis is $86,000.
Carrying value = Cost - Depreciation to date = 100,000 - (100.000 cost / 10 years) = $90,000
While tax basis = Cost - Tax depreciation = $100,000 - $14,000 = $86,000
Technically you could live in a tree house if you wanted to.
Answer:
$544.265
Explanation:
Given:
FV = $1,000
Yield to maturity = 5.2%
N = 12 years
Required:
Find the value of the zero coupon bond.
Use the formula:
PV = FV * PVIF(I/Y, N)
Thus,
PV = 1000 * PVIF(5.2%, 12)
= 1000 * 0.544265
= $544.265
The value of the zero coupon bond is $544.3
Answer:
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