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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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Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}

AW_C=1,000,000(A/P, 8% , 10)

⇒ AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}

⇒ AW_2=2,000,000(A/P, 8%, 20)

⇒ AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}

⇒AW_C_2 = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0
2 years ago
real estate brokers serve as intermediaries by bringing buyers and sellers together in the real estate market. for this service,
Nezavi [6.7K]

When brokers serve as intermediaries who bring buyers and sellers together in the real estate market, they get paid what is commonly known as a Commission.

<h3>How are real estate brokers paid?</h3><h3 />

In the real estate market, brokers are paid based on commission. This commission is charged on the selling price of the house which means that it is the buyer that pays the commission. The reason real estate brokers get paid a commission is because of their service of bringing the buyers of real estate, to those who want to sell their property in the real estate market.

There can be different rates paid for commission to real estate brokers depending on the services rendered, the location, or how well known the real estate agent is. However, commission paid often ranges between 5% of the selling price to 6%. This means that if a real estate broker sells a property worth $100,000, they can expect between $5,000 and $6,000.

Find out more on real estate commission at brainly.com/question/13094656

#SPJ1

7 0
9 months ago
During the current year, sales on account were $306,673, collections on account were $290,750, write-offs of bad debts were $7,0
sweet-ann [11.9K]

Answer:

  • 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.

Accounts Rec T-Account  

$ 306.673 Debit

$ 290.750 Credit

$ 7.059    Credit

$ 8.864    Debit Balance

Allowance for Doubtful Accounts T-Account  

$ 7.059 Debit

$ 4.775 Credit

$ 2.284 Debit Balance

  • 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.

$ 4.775   Dr Bad Debt Expense

  • 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.

$ 2.284    Dr (Debit) Allowance for Uncollectible Accounts

$ 8.864    Dr (Debit) Accounts Receivable                        

Explanation:

  • Initial Balance

Dr Accounts Receivable  $ 306.673

 

  • Write-offs of bad debts  

Cash $ 290.750

Cr Accounts Receivable  $ 290.750

 

  • Write-offs of bad debts  

Dr Allowance for Uncollectible Accounts $ 7.059

Cr Accounts Receivable  $ 7.059

 

  • Bad debt expense adjustment  

Dr Bad Debt Expense $ 4.775

Cr Allowance for Uncollectible Accounts $ 4.775

 

  • 1-b. Complete the amounts related to Accounts Receivable and  

Bad Debt Expense that would be reported on the INCOME STATEMENT for the current year  

Dr Bad Debt Expense $ 4.775

 

  • 1-c. Complete the amounts related to Accounts Receivable and  

Bad Debt Expense that would be reported on the BALANCE SHEET for the current year.  

Dr Allowance for Uncollectible Accounts $ 2.284

Dr Accounts Receivable  $ 8.864

6 0
3 years ago
Select the correct answer. You are reading product reviews posted online by consumers. Which external information source are you
joja [24]

consumer reports

_______________

8 0
2 years ago
Compute conversion costs given the following data: direct materials, $361,300; direct labor, $195,300; factory overhead, $216,70
Radda [10]

Answer:

a. $412,000

Explanation:

Conversion cost is the combination of direct labor and manufacturing overhead which directly or indirectly are necessary to produce a product other than the direct raw materials.

We know,

<em>Conversion costs = Direct Labor + Manufacturing Overhead</em>

Here,

Manufacturing overhead = Indirect material + Indirect Labor + Indirect overhead (including variable and fixed overhead)

Given,

Direct labor = $195,300

Manufacturing overhead = Factory overhead = $216,700

Selling expenses will not be included because it is not a direct or indirect overhead expense.

Therefore,

<em>Conversion costs = </em>$195,300 + $216,700

<em>Conversion costs = </em>$412,000

8 0
3 years ago
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