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Elan Coil [88]
3 years ago
12

A firm's after-tax operating income was $1,000,000 in 2016. It started the year with total capital of $8,000,000 and raised an a

dditional $1 million of capital during the year. The additional capital raised during 2016 only started to affect the operating income in 2017. Which value best represents the return on capital for 2016
Business
1 answer:
Arada [10]3 years ago
7 0

Answer:

best represents the return on capital is  12.5 %

Explanation:

given data

operating income = $1,000,000

total capital = $8,000,000

to find out

best represents the return

solution

we find return by given formula that is

return = \frac{operating income}{total capital}    .............1

put here value

return = \frac{1,000,000}{8,000,000l}

return = 0.125

so best represents the return on capital is  12.5 %

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Robinson Manufacturing found the following information in its accounting records: $523,000 of direct materials used, $215,000 of
cupoosta [38]

Answer:

Company’s Cost of Goods Manufactured = $1,506,500

Explanation:

Use following formula to calculate cost of goods manufactured

Cost of Goods Manufacture = Direct Material cost + Direct labor cost + Manufacturing overhead + Work in process beginning balance - Work in process Ending balance

Cost of Goods Manufacture = $523,000 + $215,000 + $774,500 + $78,000 - $84,000

Cost of Goods Manufacture = $1,506,500

3 0
3 years ago
On the first day of the fiscal year, Shiller Company borrowed $63,000 by giving a five-year, 12% installment note to Soros Bank.
lidiya [134]

Answer:

Bank A/c  Dr           $63,000

  To Notes Payable                         $63,000

(Being the issuance of the installment note for cash is recorded)

Explanation:

The journal entry is shown below:

Bank A/c  Dr           $63,000

  To Notes Payable                         $63,000

(Being the issuance of the installment note for cash is recorded)

For recording this transaction, we debited the bank account as it increased the assets account and at the same time it decreased the liabilities so the notes payable is credited

8 0
2 years ago
Consider a single period problem where the riskless interest rate is zero, and there are no taxes. A firm consists of a machine
kifflom [539]

Assuming the firm has 100 shares outstanding and debt with a face value of $50 due at the end of the period. The share price of the firm is $0.95.

<h3>Share price</h3>

First step is to calculate the expected payoff to equity

Expected equity=[($80 ×0.5) + ($210 × 0.5)]-$50

Expected equity=($40+$105)-$50

Expected equity = $145-$50

Expected equity=$95

Now let calculate the share price

Share price=$96/100 shares

Share price=$0.95

Inconclusion the share price of the firm is $0.95.

Learn more about share price here:brainly.com/question/1166179

8 0
2 years ago
alexander spent27$ for tickets to a baseball game.he also spent 24$on food how much did he spend on tickets and food
Lera25 [3.4K]

Answer:

either this is a stupid question or this isnt asked right hahaha, based on the basic info here, 51??

Explanation:

6 0
3 years ago
Read 2 more answers
Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the oconee r
vagabundo [1.1K]
The question is incomplete and should state "Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the Oconee river. New plastic technology makes kayaks less expensive to make, as a result, one should expect the equilibrium price of kayaks to purchased to fall and the equilibrium quantity of the kayaks to raise." The questions is also a true or false question. The answer will be false. It is false because both the equilibrium price will raise and so will the quantity. The increase in demand will will create a new curve in the demand which will raise the prices and the companies will make more kayaks. 
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3 years ago
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