Explanation:
An income statement helps business owners decide whether they can generate profit by increasing revenues, by decreasing costs, or both. It also shows the effectiveness of the strategies that the business set at the beginning of a financial period
Answer:
$267,500
Explanation:
First-year sales are $250,000
Second-year sales will increase by 7 percent.
The first-year sales were 100%, second-year sales should be 107%
The first-year sale was $250,00; second-year sale will be 107% of $250,00
= 107/100 x 250,00
=1.07 x $250,000
=$267,500
I think the most appropriate would be that, Landom Mars, should increase his shareholders' equity instead of decreasing it, and the "decreasing cash" is correct.
I hope it helped you!
Answer:
2.33
Explanation:
Given that,
Profit margin = 6%
Return on assets (Investment) = 14%
Using the Du Point method,
Profit margin × Total assets turnover = Return on assets (Investment)
6% × Total assets turnover = 14%
Therefore,
Total assets turnover = 14% ÷ 6%
= 2.33
Hence, its assets turnover is 2.33
Answer:
FCFE: 99
Explanation:
FCFE: cash flow from operation - CAPEX + borrowing
we calcualte the cash flwo form operation using the indirect method:
net income - preferred dividends = available for common stock
income = 125 + 14 = 139
net income 139
depreciation expense 50
change in working capital (30)
cash flow from operation: 159
CAPEX will be the long term assets investment
investment on fixed capital<u> 100 </u>
CAPEX 100
net borrowing 40
159 -100 + 40 = 99