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frozen [14]
3 years ago
11

Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars)

Business
1 answer:
JulsSmile [24]3 years ago
3 0

Answer:

<u>Year 1</u>

Profit Margin = Net Income / Net Sales

Profit Margin = $751 / $2,500

Profit Margin = 0.3004

Profit Margin = 30.04%

Basic Earning Power = Operating Income / Total Assets

Basic Earning Power = EBIT * Return on Total Asset / Net Income

Basic Earning Power = $1,360 * 17.18%/751

Basic Earning Power = 0.311115846

Basic Earning Power = 31.11%

<u>Year 2</u>

Operating Margin = Operating Income / Net Sales

Operating Margin = $1,896 / $3,175

Operating Margin = 0.5971653543307087

Operating Margin = 59.72%

Return on Total Assets = Basic Earning power * Net Income/EBIT

Return on Total Assets = 26.13% * $984/$1,896

Return on Total Assets = 0.1356113924050633

Return on Total Assets = 13.56%

Return on Common Equity = Net Income / Total Common Equity

Return on Common Equity = $984 / ($751/32.30%)

Return on Common Equity = $984 / $2325.08

Return on Common Equity = 0.42321124

Return on Common Equity = 42.32%

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Answer:

A. True

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2 years ago
A marketing manager had a goal to improve market share for his paper plates by 2 percent in the coming year, and he felt he’d ne
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The correct option is (A)

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3 years ago
An increase in the demand for loanable funds will occur if there is A. an increase in the real interest rate. B. an increase in
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2 years ago
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he three main types of banks (Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology,
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3 years ago
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,500. Budgeted cash rec
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Answer:

$12,500

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Budgeted cash disbursements are the payments that the company expects to make in a specific period of time.

$19,500+190,500-191,000= 19,000

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