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Sliva [168]
3 years ago
8

Company B has sales of $807,200, total assets of $768,100, and a profit margin of 6.68 percent. The firm has a total debt ratio

of 54 percent. What is the return on equity
Business
1 answer:
Juliette [100K]3 years ago
5 0

Answer:

15.26%

Explanation:

The computation of the return on equity is shown below;

We know that

Profit margin = Net income ÷Sales

So,  

Net income = ($807,200 × 6.68%)

= $53,920.96

Now  

Debt ratio = debt ÷ Total assets

Debt = (0.54 × $768,100)

= $414,774

We know that  

Total assets = debt + equity

equity = ($768,100 - $414,774)

= $353,326

Finally

ROE = Net income ÷ equity

=$53,920.96 ÷ $353,326

=15.26%

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The following account balances were extracted from the accounting records of Thomas Corporation at the end of the​ year: Account
Hatshy [7]

Complete Questions:

The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable $1,105,000. Allowance for uncollectible accounts (credit) $37,000. Uncollectible-Account Expense $64,000 .  What is the net realizable value of the accounts receivable?

A. $1,142,000

B. $1,169,000

C. $1,105, 000

D. $1,068,000

Explain

Answer:

Thomas Corporation

D. $1,068,000

Explanation:

1. Data and Calculations:

Accounts Receivable $1,105,000

less Allowance for uncollectible accounts (credit) $37,000

Net realizable value = $1,068,000

2. Thomas Corporation's Accounts Receivable balance is a debit balance and the Allowance for uncollectible accounts is a credit balance.  Since the Allowance for uncollectible accounts is a contra account to the Accounts Receivable, when the two are netted, the balance is the net realizable value of the Accounts Receivable.

3. Thomas cannot include the Uncollectible-Account Expense of $64,000

in the computation of the net realizable value since it has been charged and closed to the income summary and as a temporary account, it cannot be treated as other permanent accounts.

7 0
3 years ago
All counties in Texas have the same basic structure, as dictated by law, with little localized variation. Critics take issue wit
Annette [7]

It is true that employment in county government is not based on system but rather is often determined by political or personal relationships. Critics contend that this leads to inefficiencies.

<h3>How employment is determined by political or personal relationships?</h3>
  • Employing someone based only on their political and personal connections could result in inefficiency.
  • To make sure they are hiring people who are deserving of the roles they are giving, employers must constantly search the open market for qualified personnel.
  • Additionally, by hiring just members of a select set of people, the company or organization may be engaging in unfair labor practices in front of the Equal Employment Opportunity Commission (EEOC) if the offense is committed repeatedly.
  • Even while discussing vacancies for public deputy officers, the situation deteriorates.

Learn more about Employment here:

brainly.com/question/17459074

#SPJ4

5 0
1 year ago
The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetu
DaniilM [7]

Answer:

Inventory shrinkage = $1,322

Explanation:

We know,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Given,

Actual inventory at hand = $13,500

Ending inventory = Beginning inventory + Purchase - Inventory sold(Costing price)

Or, Ending inventory = $19,000 + $52,950 - $57,128

Or, Ending inventory = $71,950 - $57,128

Or, Ending inventory = $14,822

Therefore,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Or, Inventory shrinkage = $14,822 - $13,500

Or, Inventory shrinkage = $1,322

5 0
3 years ago
Working capital cash flow. Cool​ Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11​% of the mon
lianna [129]

Answer:

The answer is attached;

Explanation:

Download xlsx
5 0
3 years ago
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p
raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

                                     = 1.75

Therefore, the  capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

                       = 1.00 ÷ 1.75

                       = 0.5714 or 57.14 %

7 0
3 years ago
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