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3 years ago

ABC Company's return on asset is greater than XYZ Company's return on asset, but XYZ

Business

1 answer:

fomenos3 years ago

4 0

Answer:

d) XYZ company is highly debt financed relative to ABC

Explanation:

The difference between the return on equity ( ROE) and return on assets (ROA) is the structure of capital financing.

ROE is calculated as follows

ROE = net income / shareholders equity. Shareholders' equity is the difference between a business's assets and liabilities. I.e., shareholders equity = Assets - Liabilities.

ROE considers the debts of the business. If a company is highly indebted, its ROE will be high.

ROA is calculated: ROA = net income/ total assets. Total assets is the sum of shareholders' equity plus liabilities. i.e., total assets = assets + liabilities.

The difference is the two ratios is the denominator. If the denominator is small, the ratio will be bigger. A business with a high level of debt will have reduced equity( assets- liabilities).

XYZ Company's return on equity is greater than ABC's, implying that XYZ has more debts than ABC.

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A buyer is concerned about making changes to a historic property he wants to purchase. Who should the buyer consult?

Andreas93 [3]

Answer:

real estate agent

Explanation:

A real estate agent is seen as a licensed professional , whose job or duties is to arrange real estate transactions, putting buyers and sellers together and acting as a representatives in negotiation. this negotiations and purchase are basically made for property procurement.

4 0

3 years ago

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the

Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

<u>To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

6 0

3 years ago

On January 15, the end of the first biweekly pay period of the year, North Company’s payroll register showed that its employees

mojhsa [17]

Answer:

Cr. FICA- Social security taxes payable: 2,480

Cr. FICA- Medicare taxes payable: 508

Cr. fed. inc. taxes payable: 2,000

Cr. Employment medical insurance payable: 1,108

Cr. Employee union dues payable: 240

Cr. Salaries Payable: 33,664

Explanation:

Journal entry

Dr. Sales salaries expense: 40,000

Cr. FICA- Social security taxes payable: (40,000×6.2%) 2,480

Cr. FICA- Medicare taxes payable: (40,000×1.45%) 508

Cr. fed. inc. taxes payable: 2,000

Cr. Employment medical insurance payable: 1,108

Cr. Employee union dues payable: 240

Cr. Salaries Payable: 33,664

Salaries Payable

2,480+508+2,000+1,108+240=6,336

40,000-6,336= 33,664

4 0

3 years ago

Kenneth Corporation expects to incur indirect overhead costs of $166,400 per month and direct manufacturing costs of $22 per uni

Eva8 [605]

Explanation:

The computation is shown below:

1. For Predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)

where,

Total estimated direct manufacturing cost is

= $166,400 × 4 months

= $665,600

And, the total number of units is

= 4,700 units + 8,700 units + 4,300 units + 7,900 units

= 25,600 units

So, the predetermined overhead rate is

= $665,600 ÷ 25,600 units

= $26 per unit

2. Now the allocated cost for each month is shown below:

For January

= 4,700 units × $26

= $122,200

For February

= 8,700 units × $26

= $226,200

For March

= 4,300 units × $26

= $111,800

For April

= 7,900 units × $26

= $205,400

c. Now the total cost per unit is

= $22 + $26

= $48 per unit

5 0

3 years ago

What were the impacts of the fur trade on society in terms of economics, culture, technology, nature, and the government? Did Ro

Oksi-84 [34.3K]

Answer:

The impacts of the fur trade on society in terms of economics, culture, technology, nature, and the government changed over the time.

Rockefeller never act unethically by the standards of his day or today´s.

There is nocontradiction between his personal and business ethics.

Explanation:

The fur trade was a vast commercial enterprise, which was at its peak for nearly 250 years, from the early 17th to the mid-19th centuries, sustained to satisfy the demand in an intensely competitive trade which opened exploration and settlement, financing missionary work, established social, economic and colonial relationships between Europeans and Indigenous people.

Changing cultural in the fashion industry, has had a drastic evolution over the years, when a woman in the first half of the twentieth century , might be very proud to wear a fox stole with its head and feet intact but today, it would consider that an ethical faux pas.

Ethics has become a major consideration for young people in their selection of work and career, who demand enshrined values in their business model, a difference, contributing with their core values, conscience, and personality not just profit.By the standards of his day Rockefeller, a faithful, balanced and devout Christian, was not being unethical as he always followed his-time regulations and laws, although nowadays they are more severe. He compensated all the things he did, if wrong, with his contributions to help people cope with any damage done. There is no contradiction behe did as he had been taught when he was younger that he should separate business from pleasure.

6 0

3 years ago