Answer:
1. 0.07161
2. 2.43
3. 0.02932
Explanation:
1. The computation of the return on total assets is shown below:
Return on assets = (Net income) ÷ (average of total assets)
where,
Net income is $355
Average total assets = (Beginning total assets + ending total assets) ÷ 2
= ($4,090 + $5,825) ÷ 2
= $4,957.50
Now put these values to the above formula
So, the ratio would equal to
= $355 ÷ $4,957.50
= 0.07161
2. The computation of the assets turnover is shown below:
Total asset turnover = (Net Sales ÷ average of total assets)
= ($12,105 ÷ $4,957.50)
= 2.43
3. The computation of the profit margin is shown below:
= (Net earnings ÷ net sales) × 100
= ($355 ÷ $12,105) × 100
= 0.02932
The correct option is B. Participative leaders take steps to ensure that their employees take part in making decisions that affect the company. This type of leadership is especially effective when the employees have high degree of ability and when the decisions are personally relevant to them.
Since the transaction was on account basis, the journal entry will be:
debit accounts receivable for $625
credit sales $625
the account title accounts receivable was used because the debtor didn't pay for the merchandise and the sales account was used because the company gain income from that transaction.
Answer:
$56,000
Explanation:
The computation of net sales is shown below.
For the net sales reported, we'll add the sales revenue and deduct the sales return and allowances with sales discount
Net sales reported = Sales revenue - sales return and allowance - sales discount
= $57,200 - $500 - $700
= $56,000