Answer:
Total asset turnover = 1.375
Explanation:
In this question we use the DuPont analysis which is presented below:
Return On Assets = Net Profit Margin × Total asset turnover
0.11 = 0.08 × total assets turnover
So, the total assets turnover would be
= 0.11 ÷ 0.08
= 1.375
Simply we find out the asset turnover by applying the return on assets formula that is displayed above
The minimum requirement of salary = $53760
<u>Explanation:</u>
Cost of living in city is 12 percent higher than where Luke Anderson lives. So, Luke Anderson will require 12 percent higher salary than existing salary in order to maintain the existing standard of living
<u>The calculations are as follows.
</u>
Current salary of Luke Anderson = $48000
12 percent increase = 48000 multiply with 12 percent = 5760
Thus, the required minimum salary = 48000+ 5760 = 53760
So, Luke Anderson will require minimum salary of $53760
They have really really good food.
Answer:
1) Warranty expense = $550
2) Warranty liability = $550
3) Warranty liability = $435
Explanation:
As per the data given in the question,
1.) Warranty expense = 5% of dollar sales
= 5% × $11,000
= $550
2.) On year end Dec-31st balance of liability will be same as expense incurred as there is no repair in year 1.
So, Estimated Warranty liability = Warranty expense
Estimated Warranty liability = $550
3.) Beginning balance = $550
Repair cost = $115
End balance of year = Beginning balance - Repair cost
= $550 - $115
warranty liability = $435
