I believe the correct answer from the choices listed above is the second option. The two <span>participating countries were benefited by global trade in terms of </span><span>economic growth in both the countries. Hope this answers the question. Have a nice day.</span>
Answer:
(a) 14.9107%
(b) 17.9095%
(c) 21.13321%
Explanation:
Given that,
Net profit margin = 3.58%
Total asset turnover = 1.75
Total assets = $42.6 million
Book value of equity = $ 17.9 million
(a) firm's current ROE:
= Net income ÷ Total equity
= Net profit margin × Assets turnover × (Assets ÷ Equity)
= (Net income ÷ sales) × (sales ÷ assets) × (Assets ÷ Equity)
= 3.58% × 1.75 × ($42.6 ÷ $17.9)
= 3.58% × 1.75 × 2.38
= 14.9107%
(b) If the firm increased its net profit margin to 4.30 %,
ROE:
= 4.30% × 1.75 × ($42.6 ÷ $17.9)
= 4.30% × 1.75 × 2.38
= 17.9095%
(c) If, in addition, the firm increased its revenues by 18%,
Asset turnover increases by:
= 1.75 × 1.18
= 2.065
ROE:
= 4.30% × 2.065 × ($42.6 ÷ $17.9)
= 4.30% × 2.065 × 2.38
= 21.13321%
Explanation:
means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it.
Answer:
$114 unfavorable variance
Explanation:
Austin produced 510 chairs:
estimated machine hours actual machine hours
2,040 hours 2,100
estimated variable overhead actual variable overhead
$11,016 $11,130
the variable overhead efficiency variance is $11,016 - $11,130 = -$114
a negative number means that the variable variance is $114 unfavorable
Answer:
a. ignores non cash expenses
Explanation:
The operating cash flow refers to the day to day operating activities which reflect the cash outflow and cash inflow
The formula to compute the operating cash flow by top-down approach is shown below:
Operating cash flow = Sales revenue - Cost of goods sold - Taxes
It does not considered any depreciation or amortization expenses.