Answer: 2.5
Explanation:
The Turnover (Asset Utilization) is calculated by dividing the business Turnover (Sales) by it's Assets.
We have the amount of assets (Investment). Now we have to calculate the Sales.
The Net Income was 12.5% of $100,000 so solving for that would be,
= 0.125 * 100,000
= $12,500
$12,500 was the Net Income.
It was said that the Net Income was 5% of sales so using algebra we have,
12,500= 0.05x
x = 12,500/0.05
= $250,000
With sales of $250,000 we can calculate the Turnover as,
Asset Turnover = Sales / Assets( Investment)
= 250,000/100,000
= 2.5
If you need any clarification do react or comment.
Answer:
The Turnover = 2.5
Explanation:
Step 1 : Find Net income
Return on Investment (ROA) = Net income/ Assets
12.5%=Net Income/$100,000
Net income = $100,000*12.5%
Net income= $12,500
Step 2 : Calculate Sales
Net income = Sales *5%
Therefore substitute known values
Sales = $12,500 *100/5
Sales = 250,000
Step 3 : Calculate Turnover ratio
Turnover = sales/ Assets
= 250,000/100,000
=2.5
Answer:
Objective Theory
Explanation:
The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.
The objective theory is important as it advocates freedom to a fair hearing, freedom of contract, and personal independence or sovereignty.
Answer:
The statement is: True.
Explanation:
Environmental scanning refers to the analysis companies make of the immediate and further atmosphere that will allow them to spot threats to counteract or mitigate them and opportunities from where the firm can make a profit. Organizations engaging environmental scanning constantly review different mediums of communication and conduct researches that will keep them up-to-date on market fluctuations.
Helen's role at Marshall Manufacturing involves environmental scanning which requires her to monitor various external factors that influence the company's marketing efforts. The emergence of technology and globalization has expanded competition and reshaped market dynamics, pressing businesses and workers to adapt for macroeconomic growth.
Helen, a manager at Marshall Manufacturing, is actively engaged in environmental scanning, a crucial process in business management that involves analyzing various factors that may impact the company's marketing strategies and overall success. The actions she takes to examine global, technological, socio-cultural, competitive, and economic influences are a testament to this activity's importance. Crucial shifts in how we define markets, primarily due to advancements in technology and globalization, have opened up local businesses to a world of increased competition and innovative approaches to business-to-business relationships via online platforms.
This competitive environment encourages both individual workers and firms to seek improvements and invest in human and physical capital, which can lead to macroeconomic growth. The need to stay ahead in technology and to participate in the global marketplace invariably affects local market dynamics and corporate decision-making processes.
#SPJ3
Answer:
Company's contribution margin ratio is 70.59%
The contribution margin ratio for Sweet Treats is calculated by subtracting the variable cost per cone from the selling price per cone to get the contribution margin per cone. This is then divided by the selling price per cone to get the Contribution Margin Ratio, which is 70.59%.
To calculate the contribution margin ratio for Sweet Treats, we first need to determine the contribution margin per cone. This is done by subtracting the variable cost per cone ($1.25) from the selling price per cone ($4.25), which gives us a contribution margin of $3.00 per cone.
Then, the Contribution Margin Ratio is calculated by dividing the contribution margin per unit by the selling price per unit. In our case, the selling price per cone is $4.25 and our contribution margin per cone is $3.00. Therefore:
Contribution Margin Ratio = ($3.00/$4.25)×100% = 70.59%.
So, for Sweet Treats, the contribution margin ratio is 70.59%. This means that for each cone sold, 70.59% of the sales price is contributed to covering fixed costs after variable costs have been paid. Once the fixed costs are covered, the remaining amount goes into profit.
#SPJ3
b. What is the effective rate on this loan?
c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?
Answer:
a. AIE will have to borrow $25,5102.04
b. The Effective Rate on this Loan is 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%
Explanation:
In order to calculate how much will AIE have to borrow we would have to use the following formula:
Amount to be borrowed = Cost of Truck / (1 - Compensating balance)
Amount to be borrowed = $250000 / (1 - 0.02)
a. Amount to be borrowed = $25,5102.04
In order to calculate the effective rate on this loan we calculate the following:
Effective Rate on this Loan = Interest / Amount received
Effective Rate on this Loan = 16581.63 / 250000
b. Effective Rate on this Loan = 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%
AIE will need to borrow approximately $255,102 at an effective interest rate of 6.63%. If the compensating balance requirement is removed, the effective rate will be 6.5%.
a. AIE will need to borrow the amount of the truck ($250,000) divided by 1 minus the compensating balance rate (2%). So, the company will have to borrow $250,000 / (1 - 0.02) = $255,102.
b. The effective interest rate is the discount interest divided by (1 - compensating balance), which is 6.5% / (1 - 0.02). The effective rate is thus approximately 6.63%.
c. If the compensating balance requirement is removed, the effective rate will be the same as the quoted rate, which is 6.5%%.
#SPJ12
Answer:
January 1, Year 1 Cash $56017.5 Dr
Discount on Bonds Payable $1732.5 Dr
Bonds Payable $57750 Cr
Explanation:
The value of bonds which are issued at par is denoted by 100. If the bonds are issued at anything above 100 denomination, this means that the bonds are issued at a premium and if the denoted figure is less than 100, like in this question it is 97, the bonds are issued at a discount.
The cash received on the issuance of this bond will be 97% of the face value of the bond and the 3% will be the discount on the issuance of these bonds.
Thus, the cash received is = 57750 * 97% = $56017.5
The discount on Bonds Payable = 57750 - 56017.5 = $1732.5
The journal entry to record the bond issuance and the receipt of cash would be:
Date Account title Debit Credit
Year 1 Cash $56,017.5
Discount on Bonds Payable $1, 732.5 Dr
Bonds Payable $57, 750 Cr
Since the bonds were issued at 97, this means they were issued at a discount. The discount on bonds payable is the difference between the face value and the issue price.
Issue Price = $57,750 x 97%
= $56,017.50
Bond Discount = $57,750 - $56,017.50
= $1,732.50
The journal entry to record the issuance of the bonds on January 1, Year 1, would include:
Debit Cash for the amount received ($56,017.50).
Debit Discount on Bonds Payable for the discount amount ($1,732.50).
Credit Bonds Payable for the face value of the bonds ($57,750).
This entry reflects the receipt of cash and the creation of a liability for the face value of the bonds. The discount account represents the additional interest expense that will be recognized over the life of the bonds.
Find out more on journal entries at brainly.com/question/13312580
#SPJ3
Answer:
Explanation:
Amount required 800000
Plan-1 9% per Annum
Year -1 800000 9% 72000
Year -2 800000 9% 72000
Total interest 144000
Plan-2
Year -1 800000 6.75% 54000
Year -2 800000 10.55% 84400
Total interest 138400
Interset cost
Plan-1 144000
Plan-2 138400
Plan 2 is more benificial because interest cost is lesser than plan-1
Answer:
Plan1=$144000 Plan2= $138400
Plan two is lower than plan 1 interest so it is the better plan
Explanation:
First option
$800000×0.09 =72000
So for two years
$72000×2=$144000
Second option
first year
800000×0.0675=$54000
second year
800000×0.1055=$84400
adding the two
$54000+$84400
=$138400
Plan two is lower than plan 1 interest so it is the better plan