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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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A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable

svetoff [14.1K]

Answer:

unitary contribution margin= $2.52

Explanation:

<u>First, we need to calculate the total variable cost:</u>

Total variable cost= Variable manufacturing expense + Variable selling and administrative expense

Total variable cost= 560,000 + 260,000

Total variable cost= $820,000

<u>Now, the unitary variable cost and the selling price:</u>

unitary variable cost= 820,000 / 520,000= $1.58

Selling price= 2,132,000 / 520,000= $4.1

<u>Finally, the unitary contribution margin:</u>

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 4.1 - 1.58

unitary contribution margin= $2.52

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2 years ago

Carlos plans to start a business related to upcoming technologies. He expects rapid growth in his business venture. Although the

ale4655 [162]

Answer:

A. Venture capitalists.

Explanation:

Venture capitalists are private investment firms that makes available funding to start up companies which shows traits of rapid growth, high potential returns while also maintaining a stake in the company. The aim of venture capitalists is to receive high return on their investment in the long run.

The risk involved in being a venture capitalist is high hence they look out for growth potential in would be borrowers while also earning huge profit on successful borrowers in the long run.

Venture capitalist recoup their investment either by receiving fees on the funding provided, earn interest on the funding or have an equity stake in the company that obtained the funding.

The source of finance that would be apt for Carlos to fund is business is venture capitalists.

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3 years ago

Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the r

Grace [21]

The original investment that Rob made was $4,981 with the rate of interest of 11% per year for 18 years.

<h3 /><h3>What do you mean by present value?</h3>

Present value (PV) refers to the current price of a future amount of money or move of cash flows given a certain price of return. Future cash flows are discounted at the discount price, and the better the discount price, the lower the present price of the future cash flows.

As per the given information:

A: $32,595

P: ?

r: 11%

n = 18 years

$A=P(1+ \dfrac{r}{100} )^{n} \\\\32,595 = P(1+ 0.11)^{18} \\\\32,595 = P (1.11)^{18} \\\\32,595 = 6.5435P\\\\ P = \$4,981$

Therefore, The original investment that Rob made was $4,981 with a rate of interest of 11% per year for 18 years.

learn more about present value:

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1 year ago

At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000.

pychu [463]

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1 year ago

Select the correct answer.

never [62]

Answer:

Explanation:

to calculate gross profit for a given accounting period

3 0

2 years ago