1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
o-na [289]
3 years ago
15

Err Company has a major lawsuit against them for unsafe products. It recognizes a huge liability in 2004 of $300 million. The ef

fect of this liability is to decrease stockholders' equity by 50%. In 2005, the effect of recognizing this liability, all else equal, is:A. Return on net operating assets will increase dramatically
B. Return on net operating assets will decrease dramatically
C. Return on equity will increase dramatically
D. Return on equity will decrease dramatically
Business
1 answer:
Arturiano [62]3 years ago
5 0

Answer:

C) Return on equity will increase dramatically

Explanation:

Return on equity (ROE) is a profitability ratio and it is calculated using the following formula:

ROE = net income/ shareholders' equity

If shareholders' equity is reduced by 50%, and the net income remains stable, then ROE should double.

For example, net profit = $100, shareholders' equity = $1,000

ROE = $100 / $1,000 = 0.10

If shareholders' equity is reduced by 50%, then the new ROE will be:

ROE = $100 / $500 = 0.20

You might be interested in
Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
elena-14-01-66 [18.8K]

Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record.  This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

the previous business day will be April 11th (we should liook into the calendar and avoid counting Friday and saturdays

for the year 2019 April 12th is a friday so it is okay to define it as April 11th

7 0
3 years ago
Department S had no work in process at the beginning of the period. It added 13,600 units of direct materials during the period
lora16 [44]

Answer:

Cost of units completed = $176,528

Workings are attached:

Explanation:

Equivalent unit of production

An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically the fully completed units and the partially completed units are expressed in terms of fully completed units.

Equivalent units are used in the production cost reports for the producing departments of manufacturers using a process costing system. Cost accounting textbooks are likely to present the cost calculations per equivalent unit of production under two cost flow assumptions: weighted-average and FIFO.

Conversion costs

Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs. In other words, conversion costs are a manufacturer's product or production costs other than the cost of a product's direct materials.

Expressed another way, conversion costs are the manufacturing or production costs necessary to convert raw materials into products.

The term conversion costs often appears in the calculation of the <u>cost of an</u> <u>equivalent unit in a process costing system.</u>

For the sake of this question, we will be determining the <u>equivalent units of production:</u>

  • Units completed and transferred subject to material and conversion costs
  • Units in the closing inventory subject to material and conversion costs
  • We will then calculate the cost per units with respect to material and conversion costs for the equivalent units.
  • These cost per units will enable us to determine the cost of items completed.
Download xlsx
4 0
3 years ago
Klassen Toy Company, Inc., assembles two parts: Part 1 is first processed at workstation A for 15 minutes per unit and then proc
Sever21 [200]

Answer:

a) Process A is the bottleneck of the process

b) Hourly capacity = 60 / bottlenecktime = 60/25 = 2.4 units / hour

Explanation:

Part 1 is processed at A for 15 minutes and then at B for 10 minutes.

Thus part 1 take 15 + 10 i.e. 25 minutes two complete both processes

Part 2 is processed at C for 20 minutes.

Output from B and C i.e. part 1 and 2 respectively are fed to process D where the time taken to assemble is 15 minutes

Thus looking at the given data,

Part 1 takes longer time i.e. 25 minutes to reach process C compared to part 2 i.e. 20 minutes

So bottleneck occurs at process A and B because it takes maximum time i.e. 25 minutes

a) Process A is the bottleneck of the process

b) Hourly capacity = 60 / bottlenecktime = 60/25 = 2.4 units / hour

4 0
3 years ago
Eve was stressed as she had got transferred to italy. she decided to look at the brighter side of her relocation by telling hers
mr_godi [17]

Answer:

Emotion-focused.

Explanation:

4 0
3 years ago
A new regulation requires the local coal plant to install filtering technology to reduce their carbon emissions by 50%. Purchasi
Ray Of Light [21]
<h2>cause _____ in this community, asnew regulation requires the local coal plant to install filtering technology to reduce their <em><u>carbon emissions by 50%. Purchasing the necessary equipment is too expensive for this business, forcing them to close the plant and lay off its 500 employees. Although the intent of the new regulation was to address potential _____ caused by the plant, the closing of the business will likely cause _____ in this community, as many of its</u></em> residents relied on jobs at the plant.</h2>
3 0
3 years ago
Other questions:
  • For every 20 minutes that jack spends on his homework, he spends 40 minutes at hockey practice. what is the ratio of the amount
    10·1 answer
  • "​generally, _________ is a​ company's most expensive promotional tool."
    13·1 answer
  • In the past some states limited voting rights by
    9·2 answers
  • What is an economic system? Give two examples.
    12·2 answers
  • Two factory plants are making TV panels. Yesterday, Plant A produced twice as many panels as Plant B. Two percent of the panels
    13·1 answer
  • Choose a contemporary leader (someone you know personally or a public figure). Consider how this individual leads. Discuss what
    11·1 answer
  • There are several ways that central banks can increase or decrease the money supply. Match the descriptions below with the corre
    15·1 answer
  • Las relaciones de trabajo saludable que existe entre jefes y empleados es un ejemplo de:
    13·1 answer
  • 4. Which of the following would most likely produce the best rate of return on your investment?
    15·2 answers
  • Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments i
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!