Except under very exceptional circumstances, the only ratio that makes up ROE that can be negative is the profit margin ratio. As a result, the asset turnover ratio continues to be positive and shows the amount of sales produced for each dollar of assets owned by the organization.
One of the often used profitability statistics to determine how profitable a business or line of business is is profit margin. It displays the proportion of sales that have generated profits. Simply put, the percentage value represents the amount of profit the company made on each dollar of sales. For instance, if a company states that it had a 35% profit margin during the most recent quarter.
Different profit margins come in different forms. However, in common usage, it typically refers to net profit margin, which is a company's bottom line after all other costs, such as taxes and one-time charges, have been deducted from revenue.
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Explanation:
The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). ... Therefore, Asset turnover ratio still represents the amount of sales that is generated for each dollar of assets the company owns and always is positive.
Answer:
$149,000
Explanation:
Data provided as per the question below
Cost of goods sold = $982,000
Inventory = $186,000
Purchase = $945,000
The computation of amount of ending inventory is shown below:-
Cost of goods sold = Inventory + Purchase - Ending inventory
= $982,000 = $186,000 + $945,000 - Ending inventory
= $982,000 = $1,131,000 - Ending inventory
= $149,000
Answer:
Procedural
Explanation:
-Procedural justice refers to having a fair and transparent process that is used to make decisions.
-Interpersonal justice refers to treating people affected by a procedure in a respectful way.
-informational justice refers to letting people know why certain decisions were made.
-Distributive justice refers to a fair distribution of resources among people.
According to this, the answer is that their complaints were related to procedural justice because when they complaint about the form used for evaluating employee effectiveness they are talking about the process that is used to make the evaluations.
The other options are not right because the situation doesn't refer to how people is treated, the information of the process or the distribution of resources.
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
A) No market failure; market failure has occurred.
B) Market failure; no market failure has occurred.
C) No market failure; there will still be no market failure.
D) Market failure; there will still be market failure.
Answer:
The correct answer is A)
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then No Market Failure has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then Occurred
Explanation:
Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market.
Reasons for market failure include: positive and negative externalities, environmental concerns, lack of public goods, under provision of merit goods, over provision of demerit goods, and abuse of monopoly power.
In the question above, we see that at first there is a substandard good but people stick to it because it cost much more to switch than to enjoy the utility derivable from the good. This is logical. So there the forces of the market (price, demand and supply) are functional by themselves.
On the other hand, the cost of switching falls below the value of the benefit derivable. Logically, because it is an inferior good, people ought to switch because there is a better alternative. However because the market stays same, it means that the forces have failed to adjust accordingly.
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Answer:
80
Explanation:
According to the given situation, the computation of n is shown below:-
EXP[27.72δ]=2
δ =0.025
m = 1 ÷ 2
(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04
n ÷ 2 × ln(1.05)=ln(7.04)
n ÷ 2=40
n = 80
Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question
Hence,the n is 80
To find the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula A = P(1 + r/m)^mt. Using this formula, we can solve for t by substituting the given values into the equation and solving for t using logarithms.
To find n, the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula:
A = P(1 + r/m)mt
Where A is the final amount, P is the initial investment, r is the nominal rate of interest, m is the number of times interest is compounded per year, and t is the number of years.
In this case, A = $7.04, P = $1, r = δ, and m = 2 (since it is convertible once every two years). Using this information, we can solve for t:
$7.04 = $1(1 + δ/2)2t
Divide both sides by $1:
7.04 = (1 + δ/2)2t
Take the logarithm of both sides:
log(7.04) = log((1 + δ/2)2t)
Apply the power rule of logarithms:
log(7.04) = 2t * log(1 + δ/2)
Divide both sides by 2 * log(1 + δ/2):
t = log(7.04) / (2 * log(1 + δ/2))
Plug in the value of δ to find the value of t.
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Answer:
The basis for classifying assets as current or non-current is conversion to cash within
B. the operating cycle or one year, whichever is longer.
Explanation:
Assets are of two types, current assets, and non-current assets. Current assets are the assets which are placed on the list of the balance sheet of the company. Within one fiscal year, the current assets are expected to be converted into cash. On the other hand, non-current assets are the assets are long term asset of the company. They cannot be converted into cash in one fiscal year.