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3 years ago

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:

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%

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:

b. Materials 190,000 Accounts Payable 190,000

Explanation:

Materials may either be purchased on credit or by cash, When materials are purchased on credit, such materials are said to have been purchased on accounts.

The entries for cash purchases are ;

Debit Supplies/Inventory account

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However, when the purchase is done on account, the credit entry goes to the accounts payable and not cash.

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3 years ago

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A wi

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Answer:

Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.

Remember standard of living is measured by:

GDP per capita= Total GDP/ Total population

So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.

So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.

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3 years ago

David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agre

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Answer:

The answer is:

The Kincaids can sue David and Sandra Dess because they can be considered intended beneficiaries of the contract between them and Sirva.

Explanation:

Intended beneficiaries are third parties in a contract that can sue the promisor for breach of contract.

In the contract, David and Sandra agreed to fully disclose all information about the property. Under the terms of the contract, they agreed that Sirva and "other prospective buyers" could rely on their disclosures.

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4 years ago

A machine can be purchased for $202,000 and used for five years, yielding the following net incomes. In projecting net incomes,

FinnZ [79.3K]

Answer:

2.36 years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.

To derive cash flows from net income, depreciation expenses should be added to net income.

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 / 5 = 0.4

Deprecation expense in year 1 = 0.4 x $202,000 = $80,800

Book value in year 2 = $202,000 - $80,800 = $121,200

Deprecation expense in year 2 = 0.4 x $121,200 = $48,480

Book value in year 3 = $121,200 - $48,480 = $72,720

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Book value in year 4 = $72,720 - $29,088 = $43,632

Deprecation expense in year 4 = $43,632 x 0.4 = $17,452.80

Book value in year 5 = $43,632 x 0.4 - $17,452.80 = $26,179.20

Deprecation expense in year 5 = $26,179.20 x 0.4 = $10,471.68

Cash flow in year 1 = $18,000 + $80,800 = $98,800

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Cash flow in year 3 = $53,000 + $29,088 = $82,088

Cash flow in year 4 = $58,000 + $17,452.80 = $75,452.80

Cash flow in year 5 = $108,000 + $10,471.68 = $118,471.68

Please check the attached image for how the payback period was calculated

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3 years ago

Read 2 more answers

Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument sho

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The instrument that Shawn must use is “payable to the order of” before the name of the payee.

<h3>Requirements of Negotiability </h3>

The first of the four major considerations is whether or not a paper is negotiable, and it is one that nonlawyers must address.
Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
In a negotiable instrument, the only permissible promise or direction is to pay a particular sum of money. Any other promise or command renders negotiability null and void
This restriction exists to prohibit an instrument from having an uncertain value.
If the bearer of a negotiable instrument had to examine whether a provision or condition had been met before the thing had any value, the utility of the object as a substitute for money would be severely diminished.

Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.

To learn more about the Negotiation instrument refer to:

brainly.com/question/9312091

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2 years ago