Answer:
The company's turnover rounded to the nearest tenth: C) 9.5
Explanation:
Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:
Asset Turnover = Total Sales or Revenue/ Average Total Assets
where:
Average Total Assets = (Beginning Assets + Ending Assets )/2 = (Assets at the beginning of year +Assets at end of year )/2
In the House of Orange:
Average Total Assets = ($84,000 + $90,000)/2 = $87,000
Asset Turnover = $826,650/$87,000 = 9.5
Answer: Avoiding the use of fossil fuels
Explanation:
There are four principles of Organic Farming which are as follows :-
1. Such farming should sustain and enhance the health of soil, plants, animals as well as of humans.
2. Such farming should be based on the living ecological systems and cycles and help sustain them.
3. Thus kind of farming is build on relationships that ensure fairness with regard to common environment and life processes.
4. Such farming should be managed in a precautionary and responsible manner to protect the health and well being of current and future generations.
Hence the correct option is A .
Answer:
I don't know what are the options available but I know how to account for the cash discounts. For example if the company $10 of discount to the customer for purchasing $100, then the accounting treatment will be as under:
Dr Cash discount (Expense in nature) 10
Dr Cash Received 100
Cr Sales 110
Answer:
D. interest rates decrease.
Explanation:
As the callable bond allows the bond holder to call these bonds when they require or after a specific period of time or on a condition attached. The Decrease in Interest rate will increase the value of the bond because decrease in the interest rate will increase the present value of the future cash flows associated with the bond. So, the Allstate Insurance takes the benefit of increase in the value of the bond.
Answer: 12.53%
Explanation:
EBIT = $780,000
Interest = $470,000
EBT = EBIT - Interest
= $780,000 - $470,000
= $310,000
Net Income = EBT - Tax
= $310,000 - (35% × $310,000)
= $310,000 - (0.35 × $310,000)
= $310,000 - $108,500
= $201,500
Total assets turnover ratio = 2.8
Total assets = $10,000,000/2.8
= 3,571,429
Debt ratio = 55% = 0.55
Debt/Total asset = 0.55
Debt/3,571,429 = 0.55
Debt = 0.55 × 3571429
= 1,964,286.4
Equity = 0.45 × 3571429
= $1607143.5
Return on equity = Net income/Equity
= $201,500/$1,607,143.5
= 0.1253
= 12.53%
The company's return on equity will be 12.53%.
