Answer:
3.15 times
Explanation:
Asset turnover = Sales revenue / Average total assets
Asset turnover = $1,135,420 / $360,600
Asset turnover = 3.15 times
Answer:
The price of the stock is $56.75.
Explanation:
This can be calculated using the following formula:
P = d /r ……………………………………… (1)
Where;
P = price of the stock = ?
d = preferred stock dividend = $4.54
r = required rate of return = 8%, or 0.08
Substituting the values into equation (1), we have:
P = $4.54 / 0.08
P = $56.75
Therefore, the price of the stock is $56.75.
Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.
Explanation:
There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price
Answer:
$35,720
Explanation:
The computation of the total bonus for the existing partners is shown below;
Total capital is
= $210,000 + $123,000 +$86,000
= $419,000
Now
Share of new partner
= $419,000 × 12%
= $50,280
But the actual amount that needs to pay is $86,000
So, the bonus would be
= $86,000 - $50,280
= $35,720
Hence, the total bonus for the existing partners is $35,720
Answer:
i) Close the dividends account.
ii) Close revenue accounts.
iii) Close expense accounts.
iv) Close the income summary account.
Explanation:
Closing journal entries are closing entries made at the end of an accounting period to zero out all temporary accounts so that their balances are transferred to permanent accounts. To close temporary accounts is to set them at the end of the period to nil balances.
Temporary accounts are not permanent. They do not have running balances that continue from one period to the next, unlike permanent accounts. All temporary accounts are closed to the income statement and used to determine the financial performance of an entity. Permanent accounts are stated in the balance sheet (to determine the financial position of an entity) and appear as opening balances in the next period's accounts.
A merchandiser has four closing journal entries: Close the dividends account. Close revenue accounts. Close expense accounts. Close the income summary account, hence options B, C, D, and F are correct.
Closing journal entries are entries made to close down all temporary accounts so that their balances may be transferred to permanent accounts at the conclusion of an accounting period.
Unlike permanent accounts, they don't have running balances that carry over from one month to the next. The income statement closes all temporary accounts, which is how an entity's financial success is assessed.
Learn more about dividends account, here:
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Assets 2016
Cash and securities $2,145
Accounts receivable 8,970
Inventories 12,480
Total current assets $23,595
Net plant and equipment $15,405
Total assets $39,000
Liabilities and Equity Accounts payable $7,410
Accruals 4,290
Notes payable 5,460
Total current liabilities $17,160
Long-term bonds $7,800
Total liabilities $24,960
Common stock $5,460
Retained earnings 8,580
Total common equity $14,040
Total liabilities and equity $39,000
Income Statement (Millions of $) 2016
Net sales $58,500
Operating costs except depreciation 54,698
Depreciation 1,024
Earnings before interest and taxes (EBIT) $2,779
Less interest 829
Earnings before taxes (EBT) $1,950
Taxes 683
Net income $1,268
Other data: Shares outstanding (millions) 500.00
Common dividends (millions of $) $443.63
Int rate on notes payable & L-T bonds 6.25%Federal plus state income tax rate 35%Year-end stock price $23.77A. What is the firm's current ratio?B. What is the firm's quick ratio?C. What is the firm's days sales outstanding? Assume a 365-day year for this calculation.D. What is the firm's total assets turnover?E. What is the firm's inventory turnover ratio?F. What is the firm's TIE?G. What is the firm's debt/assets ratio?H. What is the firm's ROA?I. What is the firm's ROE?
Answer:
A. 1.375
B. 0.648
C. 77.87 days
D. 1.5 times
E. 4.69 times
F. 3.35 times
G. 34 %
H. 4.63 %
I. 23.22%
Explanation:
A. What is the firm's current ratio
current ratio = current assets / current liabilities
= $23,595 / $17,160
= 1.375
B. What is the firm's quick ratio
quick ratio = (current assets - inventory) / current liabilities
= ($23,595 - $12,480) / $17,160
= 0.648
C. What is the firm's days sales outstanding Assume a 365-day year for this calculation.
days sales outstanding = Inventory / (Sales / 365)
= $12,480 / ($58,500 /365)
= 77.87 days
D. What is the firm's total assets turnover
total assets turnover = Sales / Total Assets
= $58,500 / $39,000
= 1.5 times
E. What is the firm's inventory turnover ratio?
inventory turnover ratio = Sales / Inventory
= $58,500 / $12,480
= 4.69 times
F. What is the firm's TIE?
Total Interest Expense (TIE) = Earnings before interest and taxes (EBIT) / Total Interest Expense
= $2,779 / $829
= 3.35 times
G. What is the firm's debt/assets ratio?
debt/assets ratio = Total Debt / Total Assets × 100
= ($5,460 + $ $7,800) / $39,000 × 100
= 34 %
H. What is the firm's ROA?
Return on Assets (ROA) = Earnings Before Interest After Tax (EBIAT) / Total Assets × 100
= ($1,268 + ($829 × 65%)) / $39,000 × 100
= 4.63 %
I. What is the firm's ROE?
Return on Equity (ROE) = Net Income / Total Shareholders Funds
= $1,268 / $5,460 × 100
= 23.22%
The current ratio is 1.37, the quick ratio is 0.65, and the days sales outstanding is 56.15.
A. The current ratio is calculated by dividing total current assets by total current liabilities:
Current Ratio = Total Current Assets / Total Current Liabilities
Current Ratio = $23,595 / $17,160
Current Ratio = 1.37
B. The quick ratio, also known as the acid-test ratio, is calculated by dividing quick assets by total current liabilities:
Quick Ratio = (Cash and Securities + Accounts Receivable) / Total Current Liabilities
Quick Ratio = ($2,145 + $8,970) / $17,160
Quick Ratio = 0.65
C. The days sales outstanding measures how long it takes for a company to collect its accounts receivable:
Days Sales Outstanding = Accounts Receivable / (Net Sales / 365)
Days Sales Outstanding = $8,970 / ($58,500 / 365)
Days Sales Outstanding = 56.15
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Answer:
A 15-year mortgage monthly payments is: $1,496.5
A 30-year mortgage monthly payments is: $1,060.1
=> The difference of monthly payment between the two options is: $436.4 ( $1,496.5 - $1,060.1) where the monthly payment of the option of 15-year mortgage is higher.
Explanation:
The borrowed amount in both options is : $250,000 * 80% = $200,000;
* A 15-year mortgage monthly payments is:
We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.0425 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.3475%;
Amount of payment periods = 15 * 12 = 180
=> Monthly payment = (200,000 * 0.3475%) / [ 1 - 1.003475^(-180) ] = $1,496.5
* A 30-year mortgage monthly payments is:
We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.05 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.4074%;
Amount of payment periods = 30 * 12 = 360
=> Monthly payment = (200,000 * 0.4074%) / [ 1 - 1.004074^(-360) ] = $1,060.1