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Nikolay [14]
3 years ago
7

United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____

______.
a. net income for the year was $3,600,000, average assets were $10 million, and ROI was 6%.
b. net income for the year was $1,200,000, average assets were $20 million, and ROI was 6%.
c. net income for the year was $3,600,000, average assets were $20 million, and ROI was 2%.
d. net income for the year was $1,200,000, average assets were $10 million, and ROI was 2%.
Business
1 answer:
Hunter-Best [27]3 years ago
3 0

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

(2 ÷ 100) × $60,000,000

= 0.02 × $60,000,000

= $1,200,000

To calculate the average assets, sales is divided by the turnover.

we have, ($60,000,000 ÷ 3.0)

= $20,000,000.

To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

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Answer:

Option A is correct

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7 0
3 years ago
Assume that you have a balance of $4000 on your credit card and that you make no more charges. If your APR is 23.9% and each mon
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Answer:

The balance will be less than $100 after 44 months payment

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In this question, we are asked to calculate the time at which the Balance on a credit card would be less than $100.

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We plug these values into the equation to get;

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6 0
3 years ago
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Answer:

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To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.

6 0
2 years ago
On March 1, Young Co. borrowed $1,000 by extending their past-due account payable with a 120-day, 6% interest-bearing note. On J
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Answer:

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The complete journal entry for June 29 should be

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7 0
3 years ago
The following transactions apply to Ozark Sales for 2016:
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Answer and Explanation:

The preparation of the income statement for 2016 is shown below:-

                                 OZARK SALES

                               Income Statement

             For the Year Ended December 31, 2016

Sales revenue                             $510,000

Cost of goods sold                      $330,000

Gross margin                               $180,000

Expenses  

Operating expenses    $78,000  

Warranty expenses     $10,200  

Total operating expenses          $88,200

Operating income                       $91800

Interest expense                         $667

Net income                                  $91133

b. The preparation of balance sheet for 2016 is shown below:-

                           OZARK SALES

                           Balance Sheet

                       As of December 31, 2016

Assets  

Cash                                              $284,600

Merchandise inventory                $50,000

Total assets                                   $334,600

Liabilities  

Accounts payable $130,000  

Sales tax payable  $8,800  

Notes payable        $50,000  

Warranties payable $4,000  

Interest payable      $667  

Total liabilities                      $193,467

Here, we added all liabilities to reach the total liabilities

Stockholders' equity  

Common stock      $50,000  

Retained earnings $91,133  

Total stockholders' equity               $14,1133

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equity                                                  $334,600

c. The Preparation of statement of cash flow is shown below:-

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                                Statement of Cash Flows

                       For the Year Ended December 31, 2016

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Inflow from customers               $510,000  

Inflow from sales tax                  $40,800  

Outflow for expenses                 -$84,200  

Outflow for sales tax                -$32,000  

Outflow to purchase inventory -$250000  

Net cash flow from operating activities      $184,600

Cash flows from investing activities

Cash flows from financing activities:  

Inflow from loan                           $50,000  

Inflow from stock issue                $50,000

Net cash flows from financing activities    $100,000

Net change in cash                                      $284,600

Plus: Beginning cash balance                      0

Ending cash balance                                    $284,600

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