Why do companies use a predetermined overhead rate rather than an actual overhead rate?.

Peyton’s Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning o

Lelechka [254]

Answer:

See below

Explanation:

1. Returns on assets

= Annual net income ÷ Average total assets

Average total assets = beginning asset + ending assets ÷ 2

= ($80 million + $88 million) ÷ 2

= $84 miiliom

Return on assets = $13.4 million ÷ $84 million

Return on assets = $159.52

2. Profit margin

= Net income ÷ Net sales

= $13.4 million ÷ $114 million

= 11.75%

3. Assets turnover ratio

= Net sales ÷ Average total assets.

Recall Average total assets = $84 million

Average turnover ratio

= $114 million ÷ $84 million

= 1.36 times

5 0

3 years ago

Nysa works in an electricity distribution company’s customer service department. One day she gets a call from a customer who is

jolli1 [7]

Answer: The correct answer is empathy!

Explanation:

She put herself in the customers shoes and voiced that she was understanding. She was also patient but they emphasized how considerate she was in the example, so empathy is the answer ;)

8 0

3 years ago

Read 2 more answers

Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purp

Nana76 [90]

Answer: a. it is for a public purpose.

Explanation:

According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.

If the government has shown that nationalization is for the good of the nation, the theory espouses that it is allowed. They would however have to provide adequate compensation to those whom the property was seized from.

5 0

3 years ago

When a company purchases another company and the purchase price is greater than the fair value of the net assets acquired, this

34kurt

Answer:

Goodwill

Explanation:

Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.

When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill

The fair value of the net asset is come from subtracting the

= Company assets - company liabilities

6 0

3 years ago

Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National

dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

Update the Cash Book (Bank Column) Balance

Cash Book (Bank Column)

Debit :

Balance as at August 31 $1,620

Rent collection $375

Total $1,995

Credit :

Service charge $9

Dishonored Checks $137

Printing Charge $20

Error : Understatement $252

Balance as per updated CB $1,577

Total $1,995

Step 2

Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement as at August 31

Balance at Bank as per updated Cash Book $1,577

Add Unpresented Checks $756

Less Lodgements not yet credited ($1,695)

Balance as per Bank Statement $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0

3 years ago