A company’s assets consist of $254,478 of cash, $579,445 of accounts receivable, $487,009 of inventory, and $2,478,554 of plant and equipment. Its liabilities consist of $332,887 of accounts payable, $139,877 of accruals, and $1,275,000 of long-term debt. The company’s annual sales are $4,765,889, it paid $165,750 of interest, its earnings before taxes are $453,816, and its net income is $272,289. In its industry, the average profit margin is 6.83%, the average total asset turnover is 1.25, and the average equity multiplier is 1.85. Using DuPont analysis, determine if the company’s return on equity is above or below the industry average and what factor causes the difference?

Answers

Answer 1

Answer:

The company's Return on Equity is 18.49% therefore is above the industry average of 15.79%

Explanation:

DU PONT ANALYSIS    

ROE = PROFIT MARGIN X ASSET TURNOVER X EQUITY MULTIPLIER

Industry average ROE

0.0683 x 1.25 x 1.85 = 0,15794375 = 15.79%

Company Dupont:

Profit margin:

income  272,289

sales   4,765,889

profit margin: 0,05713288

Assets Turnover:

Sales 4,765,889

Total assets:

Cash  254,478

A/R          487,009

PEE      2,478,554

total       3,220,041

Turnover: 1.48

Equity Multiplier:

Assets 3,220,041

Liabilities:

A/P            332,887

Accrued             139,877

long-term 1,275,000

total          1,747,764

Equity: 3,220,041 - 1,747,764 = 1,472,277

Equity multiplier: 3,220,041 / 1,472,277 =  2.187116  

Company's Dupont Calculation:

ROE = PROFIT MARGIN X ASSET TURNOVER X EQUITY MULTIPLIER

0,05713288   x     1.48    x  2.187116   = 0,184935229 = 18.49%


Related Questions

In a general partnership, each partner is liable for the partnership's obligations only up to a percentage of the obligation equal to that partner's percentage of ownership of the partnership.
a. True
b. False

Answers

I believe that’s true but I’m not sure

The typical starting point of any firm's marketing mix is the:____________
A) analysis of what production equipment is available and owned by the company
B) design of the promotion campaign to be used for the product
C) selection of the places through which the good or service will be sold
D) determination of the product's price, enabling future revenues and budgets to be estimated
E) development of the good or service to be sold

Answers

Answer: E. development of the good or service to be sold

Explanation:

The typical starting point of any firm's marketing mix is the development of the good or service to be sold. The marketing mix is simply a mix of the marketing strategies that are vital to achieve marketing aims and increase sales.

It should be noted that marketing mix begins with the product and without this, distribution, pricing and the promotion are not relevant.

An investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This is a:________.
a. Combination
b. horizontal spread
c. dialogue spread
d. straddle

Answers

Answer:

diagonal spread

Explanation:

Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.

In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.

The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.

The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.

The option dialogue spread is not a valid option too.

The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.

So the most suitable option is diagonal spread which is an example of Combination.

Erkkila Incorporated reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is $426,530 and its total fixed inspection cost is $197,309. What would be the average fixed inspection cost per unit at an activity level of 7,100 machine-hours in a month

Answers

Answer:

27.79

Explanation:

According to the given situation, the computation of average fixed inspection cost per unit is shown below:-

Average fixed cost of inspection = Inspection cost ÷ Machine hous in a month

= $197,309 ÷ 7,100

= 27.79

Therefore for computing the average fixed inspection cost per unit we simply applied the above formula.

Which of the following is NOT considered a step in activity-based costing?
A. Trace or allocate overhead costs to activity cost pools.
B. Identify and classify the major activities involved in the manufacture of specific products.
C. Identify a single overhead rate as the predetermined overhead rate.
. The overhead traced or allocated to the activity cost pools is assigned to products using cost drivers.

Answers

Answer: C. Identify a single overhead rate as the predetermined overhead rate.

Explanation:

Activity based costing works by assigning indirect and overhead costs to the activities that caused the costs to be incurred and then assigning those activities to the products those activities helped produce such that indirect and overhead costing is more accurate.

The steps involved include, tracing and allocating overhead costs to activity coat pools, identifying and classifying the major activities involved in the manufacture of specific products, and assigning overhead costs to products based on cost drivers.

It does not include identifying a single overhead rate as the predetermined overhead rate. This is a step is in Standard Costing.

g An accelerated depreciation method: Group of answer choices Results in reporting higher earnings every year. Depreciation an asset over a shorter life than does the straight-line method. Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. Is required for assets that become technologically obsolete before they physically wear out.

Answers

Answer:

The correct answer is the third option: Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.

Explanation:

To begin with, the name of "Accelerated Depreciation" is refered to a method used in the accouting fields in order to determine how much of a permanent asset has been worn out by the time that has passed and to put that amount in the accounts of the company so that there is a record of the money that has been lost for those depreciations. Moreover, in difference with the traditional method, this one uses a process in where the depreciation will be higher in the early years of the asset while in the latest will be less depreciation.  

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,900, $10,900, and $17,100 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 13 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.

Answers

Answer:

$25,608.70

Explanation:

We are to calculate the present value of the cash flows

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 =  $5,900

Cash flow in year 2 = $10,900

Cash flow in year 3 = $17,100

I = 13%

Present value = $25,608.70

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

How do organizations use and deliver podcasts business communication?

Answers

Explanation:

Podcasts are usually recorded audio clips but may also be in video or document formats.

The following are some of the uses of podcasts by organizations;

to market new productsprovide information about the organizationto reach new audiences (for example, audio podcast reaches the visually impaired)

These podcasts are usually delivered via the organization's podcast channel/account, so users can just follow the organization's channel to get the latest episodes.

________is due to the inability to "successfully" adapt in the new country.

Answers

Answer:

Acculturative stress

Explanation:

Acculturation can be defined as the experiences and changes, which may be psychological, social or cultural that individuals and group of people undergo when they come into contact or are trying to adapt with a different culture in a society.

Hence, acculturation involves the process of transferring customs, beliefs and values from a cultural group to another.

This ultimately implies that, acculturative stress is due to the inability to "successfully" adapt in the new country. For instance, an African immigrant who migrates to the United States of America may experience a significant level of stressors in adapting to the cultural values, customs and beliefs of the people living in the particular state or region.

Employees in the Agriculture, Food, and Natural Resources career cluster work

A. mostly inside in an office.
B. outside sometimes.
C. on construction sites.
D. on a sales floor.

Answers

Answer:

B. Outside sometimes

Explanation:

Employees in the Agriculture, Food and Natural Resources career cluster work outside sometimes. Thus, option B is correct.

Who are Employees?

When employees are the ones who are being hired to do a specific job or a task. These are the ones who play a major role in a particular field in which they have expertise. They are the one who is employed by an employer. For the work that an employee does he or she is getting paid for that.

The employee who works in agriculture food or the natural resource sector usually is the ones who have to work outside. These are the ones who have to work in any weather or season.

They are the ones who work on the ground level. These are the other people who make natural resources and agricultural crops need to be taken care of outside. Therefore, option B is the correct option.

Learn more about Employees, here:

https://brainly.com/question/18633637

#SPJ2

Ted Catering received $1,180 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.

Answers

Answer:

Debit cash for $1,180

Credit unearned catering revenue for $1,180

Explanation:

Unearned revenue refers to the amount of money that is received in cash by a company for goods that are yet to be delivered or services that yet to be rendered.

The $1,180 advance payment received by Ted Catering is unearned catering revenue. The eneral journal entry that Ted Catering will make to record the cash receipt wil appear as follows:

Account title                                  Dr ($)             Cr ($)        

Cash                                               1,180

Unearned catering revenue                               1,180

(To record unearned catering revenue.)                              

When a business offers valuable goods and services what is the potential negative effect of this?
1) causing financial instability 2) disturbing communities
3) generating pollution
4) creating safety risks

Answers

Answer:

Option 1, 3 and 4 is the appropriate answer.

Explanation:

Potential negative impacts that industry might have on communities include emissions and waste generation, health & security threats, environmental disturbance as well as financial uncertainty. The future detrimental consequences of the industry are significant problems, but workers should treat themselves in full accordance with the fundamental to modern with either the common values of society.

Choice 2 isn't relevant to the situation in question. So the three remaining options are the appropriate response.

Which order is correct for the marketing framework?

Answers

Answer:

5C's, STP, 4P's

Explanation:

The marketing framework is a template that has instructions for the carrying out of marketing plan. Such a framework enables you to deliver the correct content to the right people, by using the right channels, at an appropriate time to attain your important or core marketing goals.

The correct order is 5C's, STP, 4P's.

Thank you!

A company purchased factory equipment for $350,000 at the beginning of the year. It is estimated that the equipment will have a $35,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be Group of answer choices $140,000. $84,000. $126,000. $60,480.

Answers

Answer: b- $84,000

Explanation:

Using the Double Decline balance method:

Annual Depreciation Rate = 1/useful Life x 2 = 1/5x2 = 0.4 = 40%

Depreciation for First  year

$350,000 X 0.4 = $140,000

Book value after year 1: $350,000 - $140,000 = $210,000

Depreciation for Second year

$210,000 X 0.4 = $84,000

Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 12%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest cent, what is the total amount of interest that was paid during the first year

Answers

Answer:

Total interest paid during the first year: $1,183.69

Explanation:

First, we need to know the installment amount:

[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]

PV 10,000.00

time 20

rate 0.06

[tex]10000 \div \frac{1-(1+0.06)^{-20} }{0.06} = C\\[/tex]

C  $ 871.85

now we calcualte the interest and amortization made in the first payment:

interest: 10,000 x 6% = 600

Amortization 871,85 - 600 = 271,85

Principal at second installment:

10,000 - 271.85 = 9,728.15

Interest 9,728.15 x 0.06 = 583,69

Total interest: 583,69 + 600 = 1.183,69

Miller Park Stadium Project Case Study

Answers

Answer:

what about it lol there's no question

lol what? where the question

Which of the following is the process the listener takes to assess the information received from the speaker?
A. Evaluating
B. Receiving
C. Providing feedback D. Understanding

Answers

Answer:

Explanation:

A- Evaluating

A. Considerations for research
a. What cultures to study?
i. Examining a theoretical variable
ii. Examining degrees of universality
b. Meaningful cross-cultural comparisons
i. Developing knowledge about cultures
ii. Different versus similar cultures
iii. Methodological issues

Answers

Explanation:

A.

a). i. Examining a theoretical variable

A culture may be defined as the information that is acquired from the other members of any species through the social learning. It is the particular information or it is the group of the individuals who exists in the shared context. Choosing what cultures to study is based on the theoretical consideration or the theoretical variable and examining the degrees of the variability.

b). ii. Different versus similar cultures

Cross cultural comparisons is a study which examines whether the measure of the psychological construct that was previously  generated in the single culture is also applicable meaningfully and thus equivalent in the another culture.

On October 31, a company finances the purchase of equipment with a $500,000 5-year note payable. The note has an interest rate of 12% and a monthly payment of $11,122, due at the end of each month. After two payments have been made, what amount should the company report as the note payable balance in its December 31 balance sheet?
a. $490,061
b. $487,695
c. $477,756
d. $487,756

Answers

Answer: b. $487,695

Explanation:

When the $11,122 monthly payment is made, it comprises of 2 things. The interest payment and the principal repayment.

For the first payment, the interest is;

= 500,000 * 12% * 1/12 ( monthly adjustment)

= $5,000

The remaining amount will be the principal repayment;

= 11,122 - 5,000

= $6,122

The note payable will reduce to;

= 500,000 - 6,122

= $493,878‬

Second payment;

Interest = 493,878‬ * 12% * 1/12

= $4,938.78

Principal Repayment = 11,122 - 4,938.78‬

= ‬$6,183.22‬

The note payable will become;

= 493,878‬  - 6,183.22‬

= 487,694.78‬

= $487,695

Equivalent Units of Conversion Costs The Rolling Department of Oak Ridge Steel Company had 10,712 tons in beginning work in process inventory (70% complete) on July 1. During July, 82,400 tons were completed. The ending work in process inventory on July 31 was 7,416 tons (60% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit. 83,636 units

Answers

Answer:

Total equivalent unit          86,688

Explanation:

We will use the weighted average method of valuation.

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Equivalent units = Degree of completion (%) × Number of units

Item                       Tons                Working                  Equivalent units

Completed unit    82,400               82,400× 100%            82,400

Closing inventory  7,416               7,416  × 60%               7,416        

Total equivalent unit                                                         86,687.6

                         

Maria wants to start a new business in collaboration with her husband and brother-in-law. The features she is looking for in the business are as follows: least possible regulatory controls, faster decision making, and ease of organization. She also wants a business in which she will not be forced to pay off any business debts from her personal assets. Which type of business ownership will be best suited to her needs? Question 1 options: A) C corporation B) Limited partnership C) S corporation D) General partnership E) Sole proprietorship pdf

Answers

Answer:

B) Limited partnership

Explanation:

Limited partnership is one where the partners involved are liable only to the extent to which they contributed to the partnership.

Also some partners only contribute financially. That means they shielded to the extent of their contribution.

In this type of partnership there is least possible regulatory controls, faster decision making, and ease of organisation because partners actually involved in running the business are few or only one person.

It also has the advantage of being a business in which the active partner will not be forced to pay off any business debts from their personal assets.

Presented below are three transactions. Mark each transaction as affecting owner's investment (I), owner's drawings (D), revenue (R), expense (E), or not affecting owner's equity (NOE). ________(a) Received cash for services performed ________(b) Paid cash to purchase equipment ________(c) Paid employee salaries g

Answers

Answer:

a. revenue (R), affecting owner's investment (I)

b. not affecting owner's equity (NOE)

c. expense (E) and affecting owner's investment (I)

Explanation:

Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.

In January, Stripe, Inc. purchased 50 shares of its own $10 par value common stock for $20 per share. In March, Stripe sold 10 shares at $25 per share. The journal entry to record the sale of treasury stock using the cost method would include a (debit/credit) Blank 1 of 2 to Treasury Stock in the amount of $ Blank 2 of 2.

Answers

Answer: credit; $200

Explanation:

The journal entry to record the sale of treasury stock using the cost method would include a credit to Treasury Stock in the amount of $200.

Using the cost method, the journal entry should reflect the sale of the stock at the original price it was purchased at ( its cost). With the original cost of purchase being $20, the 10 shares that were sold will be recorded as;

= 10 shares * $20

= $200

This will be credited to the Treasury account and along with the additional amount made on the sale, debited to the cash account to reflect a cash increase.  

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100 The total job cost for Job T687 is closest to:

Answers

Answer:

Total cost= $1,900

Explanation:

Giving the following information:

Total machine-hours 32,600

Total fixed manufacturing overhead cost $ 195,600

Variable manufacturing overhead per machine-hour $ 4.00

Job T687:

Total machine-hours 30

Direct materials $ 550

Direct labor cost $ 1,100

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (195,600/32,600) + 4

Predetermined manufacturing overhead rate= $10 per machine hour

Now, we can determine the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 500 + 1,100 + 10*30

Total cost= $1,900

Assume that the Accumulated Depreciation account has an unadjusted normal balance of $120,000. The company's list of adjusting entries includes one that debits Depreciation Expense and credits the Accumulated Depreciation account for $20,000. The adjusted balance in the Accumulated Depreciation account is a:

Answers

Answer:

$140,000

Explanation:

The computation of adjusted balance in the Accumulated Depreciation account is shown below:-

adjusted balance in the Accumulated Depreciation account = unadjusted normal balance + Credit Accumulated Depreciation account

= $120,000 + $20,000

= $140,000

Hence the adjusted balance in the Accumulated Depreciation account is $140,000.

What is one way a person can use technology to automate a process that may be more efficient doing than manually

Answers

Answer:

Business process automation is the use of technology to execute recurring tasks or processes in a business where manual effort can be replaced. It is done to minimize costs, increase efficiency, and streamline processes.

Explanation:

hope this helps

Multiple Choice based on accounting profits is preferable to the financial (or present value) break-even method. identifies the optimal maximum level of output for any given level of fixed assets. ignores both taxes and interest when computing the financial break-even point. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss. identifies the optimal sales price for any new product.

Answers

Complete Question:

Breakeven-Analysis:

Group of answer choices

A. based on accounting profits is preferable to the financial (or present value) break-even method.

B. identifies the optimal maximum level of output for any given level of fixed assets.

C. ignores both taxes and interest when computing the financial break-even point.

D. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.

E. identifies the optimal sales price for any new product.

Answer:

D. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.

Explanation:

Breakeven-Analysis provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.

It is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income. It is also known as the cost-volume-profit analysis in financial accounting.

Generally, to use the Breakeven-Analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

5. The costs accrued are as a result of change in business activities.

6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

What are the three components of the BI Ecosystem?
A. Data
B. Intelligence creation
C. Information Management
D. Innovation

Answers

OLAP (Online Analytical Processing) This component of BI allows executives to sort and select aggregates of data for strategic monitoring. ...
Advanced Analytics or Corporate Performance Management (CPM) ...
Real-time BI. ...
Data Warehousing. ...
Data Sources.

Assume that the level of capital flows between the U.S. and the country of Krendo is negligible (close to zero) and will continue to be negligible. There is a substantial amount of trade between the U.S. and the country of Krendo and no capital flows. Thus, the inflation effect will be _____ than the interest rate effect in influencing the exchanger rate of Krendo against U.S. dollar.

Answers

Answer:

Stronger

Explanation:

Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.

Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.

Determine earnings per share for Sixer Company given the following:
Net Sales Income before Income Taxes Gross Profit Income Tax Rate Preferred Stock Common Stock $885,000 $300,000 $500,000 3596 10,000 shares of 3% cumulative, $60 par 125,000 weighted shares of $5 par
A) $2.40
B) $0.70
C) $2.26
D) $1.42

Answers

Answer: D) $1.42

Explanation:

Earnings per share is calculated as the amount available to common shareholders divided by the number of common shares.

Income available to shareholders = After tax income - Preferred dividends

Income before taxes = $300,000

After tax income = 300,000 * ( 1 - 35%)

= $195,000

Preferred dividend = 10,000 * 3% * 60

= $18,000

Income available to shareholders = 195,000 - 18,000

= $177,000

Earnings per share = Income available to shareholders / Common shares

= 177,000/125,000

= 1.416

= $1.42

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