Answer:
Stock's expected return = 12.90%
Standard Deviation = 29.68%
Coefficient of variation = 2.30
Sharpe ratio = 0.30
Explanation:
Note: See the attached excel file for the calculations of the Stock's expected return and Variance.
Given:
Risk-free rate = 4%.
From the attached excel file, we have:
Stock's expected return = Total of Stock's Expected Return = 0.1290, or 12.90%
Variance = Total of F = 0.0880890, or 8.8089%
Standard Deviation = Variance^0.5 = 0.0880890^0.5 = 0.2968, or 29.68%
Coefficient of variation = Standard Deviation / Stock's expected return = 29.68% / 12.90% = 2.30
Sharpe ratio = (Stock's expected return - Risk-free rate) / Standard Deviation = (12.90% - 4%) / 29.68% = 0.30
10. Which of the principles of successful decision making emphasizes "buy-in" rather than consensus?
O A. Participation
B. Clarity
C. Focus on action
O D. Measure and reward
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
Accounts payable $598 Fees Earned $3,129
Accounts receivable 717 Insurance Expense 543
Supplies 500 Rent expense 1,500
Prepaid insurance 2,195 Land 2,773
Cash 2,002 Wages expense 651
Office equipment 1,800 Retained earnings 5,500
Dividends 701 Common stock 5,855
Unearned rent 1,600
Prepare a trial balance. The total of the debits is:
a. $11,200
b. $13,900
c. $12,700
d. $9,700
Consider the two countries of Swala and Atlantis. Swala is a major producer of wheat and rice while Atlantis specializes in the production of marble and automobile parts. Engaging in free trade benefits both countries since Swala is an agrarian nation and Atlantis lacks arable land. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion is based on which inaccurate assumptions?
a. We have assumed a simple world in which there are only two countries.
b. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
c. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
d. We have assumed that agrarian nations do not specialize in producing fertilizers.
e. We have assumed diminishing returns to specialization.
The following information relates to a product produced by Orca Company: Fixed selling costs are $1,000,000 per year. Although production capacity is 500,000 units per year, Orca expects to produce only 400,000 units next year. The product normally sells for $80 each. A customer has offered to buy 60,000 units for $60 each. The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a:
Answer,:
increase in operating income by $840,000
Explanation:
The computation is shown below:
Offer price per unit $60
Less: Variable costs per unit:
Direct materials ($20)
Direct labor ($14)
Variable overhead ($12)
Variable selling $0
Incremental profit per unit (a) $14
Units offered to sell (b) 60,000
Effect on Operating Income (Increase) (a × b) $840,000
Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000
On January 1, 2020, Grand Haven, Inc., reports net assets of $790,800 although equipment (with a four-year remaining life) having a book value of $452,000 is worth $520,000 and an unrecorded patent is valued at $54,900. Van Buren Corporation pays $730,960 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021
Answer:
The answer is "42700".
Explanation:
1 January 2020 Patent of Fair Value [tex]54900[/tex]
Less: 2020 and 2021 amortisation[tex]=54900\times \frac{2}{9} \ \ \ \ \ \ =12200[/tex]
December 31, 2021 Patent reported amount [tex]42700[/tex]
Chapter 13: Statement of Cash Flows Amount OA, IA, or FA (for extra credit only) Accounts payable increase $ 9,000 Accounts receivable increase 4,000 Salaries payable decrease 3,000 Amortization expense 6,000 Cash balance, January 1 22,000 Cash balance, December 31 15,000 Cash paid as dividends 29,000 Cash paid to purchase land 90,000 Cash paid to retire bonds payable at par 60,000 Cash received from issuance of common stock 35,000 Cash received from sale of equipment 17,000 Depreciation expense 29,000 Gain on sale of equipment 4,000 Inventory decrease 13,000 Net income 76,000 Prepaid expenses increase 2,000 Using the information above, calculate the cash flow from operating activities using the indirect method.
Answer:
Net Cash flow from operating activities $120,000.00
Explanation:
The computation of the cash flows from operating activities is shown below:
Cash flow from operating activities
Income $76,000.00
Less: Gain on sale of equipment (4,000.00)
Add: Depreciation expense 29,000.00
Add: Amortisation expense 6,000.00
Adjustments:
Add: Account payable increase 9,000.00
Less: Account receivable increase (4,000.00)
Less: Salaries payable decrease (3,000.00)
Add: Inventory decrease 13,000.00
Less: Prepaid expese increase (2,000.00)
Net Cash flow from operating activities $120,000.00
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 3,200 shares held as treasury stock. What is the entry for the dividend declaration?
Answer:
See below
Explanation:
The journal entry is shown below;
Dividend payable $10,080
_________To Cash $10,080
(Being the payment of dividend paid)
The computation is shown below;
= (20,000 shares - 3,200 shares) × $0.6
= $10,080
Dividend payable was debited as it decreases liabilities and credited cash as it reduced the assets.
A firm is considering taking a project that will produce $13 million of revenue per year. Cash expenses will be $4 million, and depreciation expenses will be $1 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 30 percent marginal tax rate
Answer:
$5.2 million
Explanation:
The computation of the free cash flow is shown below:
We know that
Free cash flow = EBIT × (1 -Tax Rate) + Depreciation & Amortization
Here
EBIT = Revenues - decreased amount of cash revenues - cash expenses - depreciation
= $13 million - $2 million - $4 million - $1 million
= $6 million
Now the free cash flow is
= $6 million × ( 1 - 30%) + $1 million
= $4.2 million + $1 million
= $5.2 million
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience.
1. What organizational pattern would be best for this situation?
a. Be brief. Use no more than three points
b. An indirect pattern with minimal audience contact
c. Any pattern, particularly with audience involvement
2. What delivery style should you use?
a. Warm, pleasant, and open
b. Even and slow speech
c. Confident, small gestures
Answer:
c. Any pattern, particularly with audience involvementa. Warm, pleasant, and openExplanation:
As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.
The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is rolls. The cost per roll is $, and the annual holding cost is percent of the cost. Each order costs $. a. How many rolls should Yellow Press order at a time? Yellow Press should order nothing rolls at a time. (Enter your response rounded to the nearest whole number.) b. What is the time between orders? (Assume workdays per year.) The time between orders is nothing days. (Enter your response rounded to one decimal place.)
Answer:
A. 44 rolls at a time
B. 5.8 days
Explanation:
A. Calculation to determine How many rolls should Yellow Press order at a time
Using this formula
EOQ=√2*Annual demand*holding cost /Carrying cost
Let plug in the formula
EOQ=√2*2,750*$35/$625*16%
EOQ=√$192,500/100
EOQ=44 rolls at a time
Therefore How many rolls should Yellow Press order at a time is 44 rolls at a time
B. Calculation to determine time between orders
Time between orders=5.8 days
The comparative balance sheets of Greenvale Games, Inc. show a net decrease in unexpired insurance of $400 and a net decrease in interest payable of $250. In order to reconcile net income with net cash flow from operating activities, net income should be:
Answer:
$150 increase
Explanation:
According to the scenario, computation of the given data are as follows,
Decrease in unexpired insurance = $400
Decrease in interest payable = $250
So, we can calculate the net income to reconcile by using following formula,
Net income = Decrease in unexpired insurance - Decrease in interest payable
= $400 - $250
= $150 ( Positive means increase)
So, net income should be increased by $150.
Northern Company has the following information available for the past quarter: Division A Division B Division C Sales $250,000 $400,000 $350,000 Variable expenses 52% 30% 40% Fixed expenses controllable by division manager $60,000 $200,000 $175,000 Fixed expenses controllable by others $10,000 $5,000 $7,500 Unallocated expenses for all three divisions are $22,000. What is the contribution controllable by the division manager in Division C
Answer:
Controllable contribution = $35,000
Explanation:
The controllable contribution of the divisional manager is the difference between the sales revenue and the costs controllable by the manager. It is a metric to measure the performance of a divisional manager
sales revenue = $350,000
Variable expenses = 40%× 350,000
Controllable costs = (40%×350,000)+ 175,000= 315,000
Controllable contribution= $350,000 - 315,000 = 35,000
Controllable contribution = $35,000
Swifty Corporation uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $27000 of materials, $18000 of direct labor costs, and $14000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $23000, and the ending balance is $17000. During the year, the company completed 25 machines. How much is the cost per machine?
Answer:
$2,600
Explanation:
Calculation to determine How much is the cost per machine
First step is to calculate the Total cost of making machines
Using this formula
Total cost of making machines
=Cost of materials +cost of direct labor+ manufacturing overhead cost+Beginning work in process-ending work in process
Let plug in the formula
Total cost per machine=$27000 +$18000 + $14000+$23000-$17000
Total cost per machine=$65,000
Now let calculate the cost per machine
Using this formula
Cost per machine
=Total cost of making machines /number of machines
Let plug in the formula
Cost per machine =$65,000/25
Cost per machine =$2,600
Therefore the Cost per machine is $2,600
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 of 6% cumulative preferred stock. The board of directors of Green declared cash dividends of $60,000 in 2011 after paying $20,000 cash dividends in each of 2010 and 2009. What is the amount of dividends common shareholders will receive in 2011?
a. 28000
b. 30000
c. 50000
d. 25000
Answer:
Option a (28000) is the right option.
Explanation:
Given:
Preferred stock,
= $400,000
In year 2009 and 2010, the dividends paid,
= $20,000 each year
Dividends declared,
= $60,000
Now,
The preferred dividend per year will be:
= [tex]Preferred \ stock\times 6 \ percent[/tex]
= [tex]400000\times 6 \ percent[/tex]
= [tex]24,000[/tex] ($)
Arrears in preferred dividend per year will be:
= [tex]24000-20000[/tex]
= [tex]4000[/tex] ($)
For preferred stock, the total dividends arrears will be,
= [tex]4000\times 2[/tex]
= [tex]8000[/tex] ($)
hence,
The dividends which are received by the common stock holders will be:
= [tex]Dividends \ declared-Preferred \ dividend-Arrears \ in \ preferred \ dividend[/tex]
By putting the values, we get
= [tex]60000-24000-8000[/tex]
= [tex]28000[/tex]
Kelly Corporation acquires all of the assets and liabilities of Lawson Co. at an acquisition cost that is $50 million above the fair value of identifiable net assets acquired. Three months after the acquisition, it is determined that because of a downturn in the economy after the acquisition, acquired brand names with indefinite lives are worth $5,000,000 less than originally estimated. The entry to reflect this new information includes:
Answer: A. A credit to goodwill of $5,000,000
Explanation:
When a company is bought for more than the fair value of its identifiable net assets, the premium paid is called goodwill. If after the acquisition, it is discovered that one of the reasons for coming up with that goodwill is no longer viable, the goodwill can be reduced or impaired.
This is the case here. The brand names are worth less than they should so goodwill will have to be adjusted downwards to reflect that. As goodwill is an asset, reducing it would mean crediting it so goodwill should be credited by the $5,000,000 amount.
Economic Condition
The President &
The federal Reserve Monetary Roller
Fiscal polyester
Government
Rate
1. High Unemployment
Phase
Type of Policy
2. Mation
Phase:
Type of policy
3. Decreasing Production,
Phase:
Type of Policy
4. Prices increasing
Phase:
Type of Policy
5. Economy "overheating”
Phase:
Type of Policy
6. Business Inventories increasing
Rapidly
Phase
Type of Policy
7. Business Sales increasing
Phase
Type of Policy
8. Economy"Cooling or
Phase:
Type of policy
9. Credit and Borrowing Expanding
Phase
Type of Policy
10 Full Employment
Phase
Type of Policy
Explanation:
9. credit and borrowing expanding
Drag each label to the correct location on the image.
Identify the features of stocks and bonds.
coupon rate
face value
closing price
maturity date
Stock
Bond
Answer:
The answer is "face value".
Explanation:
FACE VALUE was its common characteristic of stocks and bonds.
For an inventory, that original cost of stock indicated on the certification was its face value. That facial value for securities refers to the amount paid to the owner just at the expiry date.
Its book value, as well as the factor, is the distinctive function of shares, while the factor of bonds is a discount rate, duration, or factor value.
Answer:
Stock- closing price
Bond- maturity date, coupon rate, and face value
Explanation:
Got it right on the test :)
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,360 and 4,200, respectively. The actual manufacturing overhead was $72,200. What is the predetermined manufacturing overhead rate per direct labor hour for the year
Answer:
$16.00
Explanation:
Predetermined manufacturing overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined manufacturing overhead rate = $32,320 ÷ 2,020
= $16.00
Applied overheads = Predetermined manufacturing overhead rate x Actual activity
therefore,
Applied overheads = $16.00 x 2,410 = $38,560
Conclusion :
Under-applied overheads = $72,200 - $38,560
= $33,640
the predetermined manufacturing overhead rate per direct labor hour for the year is $16.00
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 22% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year.
Required:
What is the value of the stock today?
Answer:
$52.75
Explanation:
the discount rate for this question was not provided. the discount rate used is 10%
Value of the stock in year 1 and 2 = 0
value of the stock in year 3 = $1.25
value of the stock in year 4 = ($1.25 x 1.22) / 1.10^4 = $1.04
value of the stock in year 5 = ($1.25 x 1.22^2) / 1.10^5 = $1.16
value of the stock in perpetuality = ($1.25 x 1.22^2 x 1.06) / (0.1 - 0.06) = $49.30
Value of the stock today = $49.30 + $1.16 + $1.04 + $1.25 = $52.75
A two-year bond with par value $1,000 making annual coupon payments of $80 is priced at $1,000.What will be the realized compound return if the one-year interest rate next year turns out to be 6%?
Answer:
10%
Explanation:
Calculation to determine what will be the realized compound
First step is to calculate the new price
Using this formula
New price of the bond = PV of the final coupon payment + PV of the maturity amount.
Let plug in the formula
New price of the bond=80/1+r+1,000/1+r
Where,
r represent the yield to maturity
Second step is to Substitute 0.06 for r in the above equation
New price of the bond =80/1+0.06+1000/1+0.06
New price of the bond=1080/1.06
New price of the bond=1018.87
Now let Calculate the rate of return of the bond
Using this formula
Rate of return=Coupon+New price-old price/Initial price
Let plug in the formula
Rate of return=$80+1018.87-1000/1000
Rate of return=98.87/1000
Rate of return=0.09887*100
Rate of return= 9.887%
Rate of return=10% Appropriately
Therefore what will be the realized compound is 10%
Atlas Corporation reported the following earnings per share information in its current annual report. The company has only one class of stock outstanding.
Net income $7,121
Dividends to common shareholders $2,033
Weighted average common shares outstanding 4,221
Weighted average dilutive shares 4,305
Basic and diluted earnings per share were, respectively:____.
a. $1.21 and $1.18.b. $2.17 and $2.13.
c. $1.69 and $1.65.d. $1.69 and $1.18.
e. none of these are correct.
Answer:
c. $1.69 and $1.65
Explanation:
Calculation to determine Basic EPS
Using this formula
Basic EPS =Net income/Weighted average common shares outstanding
Let plug in the formula
Basic EPS = $7,121 / 4,221
Basic EPS = $1.69
Calculation for Diluted EPS
Using this formula
Diluted EPS=Net income/Weighted average dilutive shares
Let plug in the formula
Diluted EPS = $7,121 / 4,305
Diluted EPS = $1.65
Therefore Basic and diluted earnings per share were, respectively:$1.69 and $1.65
trade industry short note
An industry is a group of manufacturers or businesses that produce a particular kind of goods or services. ... Industry comes from the Latin industria, which means "diligence, hard work," and the word is still used with that meaning.
Item 6 Worton Distributing expects its September sales to be 20% higher than its August sales of $168,000. Purchases were $118,000 in August and are expected to be $138,000 in September. All sales are on credit and are expected to be collected as follows: 40% in the month of the sale and 60% in the following month. Purchases are paid 20% in the month of purchase and 80% in the following month. The cash balance on September 1 is $28,000. The ending cash balance on September 30 is estimated to be:
Answer:
Worton Distributing
he ending cash balance on September 30 is estimated to be:
= $87,440
Explanation:
a) Data and Calculations;
August September
Sales $168,000 $201,600 ($168,000 * 1.2)
Purchases $118,000 $138,000
Cash balance September 1 $28,000
Collection of sales on credit: August September
Sales $168,000 $201,600
40% month of sale 67,200 80,640
60% month following 100,800
Total cash collections $181,440
Payment for purchases: August September
Purchases $118,000 $138,000
Payment:
20% month of purchase 23,600 27,600
80% month following 94,400
Total payment for purchases $122,000
Cash budget for September
Beginning balance $28,000
Cash collections 181,440
Available cash $209,440
Cash payments 122,000
Ending balance $87,440
JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The market risk premium is 5.5%, T-bills are yielding 5% and the tax rate is 30%. What is the firm's capital structure weight for equity
Answer:
54.48%
Explanation:
The computation of the weight of equity is given below;
But before that we need to do the following calculations
Total Equity
= 3 million shares × $30
= $90 million
The Value of Debt,
Total Debt = 80,000 (1,000)(0.94)
= $75.2 million
Now the weight of equity is
= $90 million ÷ ($90 million + $75.2 million)
= 54.48%
On Point, Inc., is interested in producing and selling a deluxe electric pencil sharpener. Market research indicates that customers are willing to pay $40 for such a sharpener and that 20,000 units could be sold each year at this price. The cost to produce the sharpener is currently estimated to be $34. a. If On Point requires a 20 percent return on sales to undertake production of a product, what is the target cost for the new pencil sharpener
Answer: $32
Explanation:
The target cost would be such that 20% of the $40 that people are willing to pay would be profit.
The target profit is therefore:
= 20% * 40
= $8
Target cost is therefore:
= Amount customers would pay - Target profit
= 40 - 8
= $32
Answer:
The answer is $32 for sure :)
Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900. The par value of the bond is $1000. The original YTM on the bond is 10%, but the investor expects that he can reinvest the coupon payments at an annual interest rate of 7% and that at the end of the investment horizon this 10-year bond will be selling to offer a yield of 9%. What is the total return for this bond
Answer:
8.67%
Explanation:
PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40
N (No of coupons paid) = 10*2 = 20
Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%
Future value of reinvested coupons = FV(PMT, N, Rate)
Future value of reinvested coupons = FV(40, 20, 3.5%)
Future value of reinvested coupons = $1,131.19
FV = 1,000
PMT (Semi-annual coupons) = 40
N (No of coupons pending) = 10*2 = 20
Rate (Semi-annual YTM) = 9%/2 = 4.5%
Price of the bond after 10 years = PV(FV, PMT, N, RATE)
Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)
Price of the bond after 10 years = $934.96
Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years
Total amount after 10 years = $1,131.19 + $934.96
Total amount after 10 years = $2,066.15
Amount invested (Price of the bond now) = $900.
Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1
Total Annual Return = [($2,066.15/$900)^(1/10)] -1
Total Annual Return = [2.295722^0.1] - 1
Total Annual Return = 1.08665561792 - 1
Total Annual Return = 0.08665561792
Total Annual Return = 8.67%
12-3. (Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed costs will total $350,000, and variable costs will be 65 percent of sales. The firm wants to achieve a level of earnings before interest and taxes of $250,000. What selling price per unit is necessary to achieve this result
Answer:
Selling price= $5.08
Explanation:
Giving the following information:
Number of units= 300,000
Fixed costs= $350,000
Desired profit= $250,000
Variable cost rate= 0.65
First, we need to calculate the unitary contribution margin using the break-even point formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
300,000 = (350,000 + 250,000) / contribution margin per unit
300,000 contribution margin per unit = 600,000
contribution margin per unit= 600,000/300,000
contribution margin per unit= $2
If the variable cost rate is 0.65, then:
Unitary varaible cost= 2/0.65= $3.08
Selling price= contribution margin per unit - unitary varaible cost
Selling price= 2 - (-3.08)
Selling price= $5.08
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation
Balance Sheets
December 31
2020 2019 2018
Cash $ 30,600 $ 17,300 $ 17,300
Accounts receivable (net) 50,900 44,500 48,600
Other current assets 90,100 94,800 64,900
Investments 54,700 70,600 44,600
Plant and equipment (net) 500,600 370,000 358,700
$726,900 $597,200 $534,100
Current liabilities $85,600 $79,000 $70,700
Long-term debt 144,200 85,000 50,900
Common stock, $10 par 384,000 319,000 308,000
Retained earnings 113,100 114,200 104,500
$726,900 $597,200 $534,100
Jergan Corporation
Income Statement
For the Years Ended December 31
2020 2019
Sales revenue $736,500 $605,600
Less: Sales returns and allowances 40,200 31,000
Net sales 696,300 574,600
Cost of goods sold 424,600 372,000
Gross profit 271,700 202,600
Operating expenses (including income taxes) 181,181 150,886
Net income $ 90,519 $ 51,714
Additional information:
1. The market price of Jergan’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
(a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2019 2020
(1) Profit margin % %
(2) Gross profit rate % %
(3) Asset turnover times times
(4) Earnings per share $ $
(5) Price-earnings ratio times times
(6) Payout ratio % %
(7) Debt to assets ratio % %
Answer:
1. 2020
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $271,700/$696,300
Gross Margin Ratio = 0.3902054
Gross Margin Ratio = 39.02%
2019
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $202,600/$574,600
Gross Margin Ratio = 0.35259311
Gross Margin Ratio = 35.26%
2. 2020
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $90,519/$696,300
Profit Margin Ratio = 0.13
Profit Margin Ratio = 13%
2019
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $51,714/$574,600
Profit Margin Ratio = 0.09
Profit Margin Ratio = 9%
3. 2020
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $696,300 / [726900+597200)/2]
Asset Turnover Ratio = $696,300 / $662050
Asset Turnover Ratio = 1.05
2019
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $574,600 / [(597200+534100)/2}
Asset Turnover Ratio = $574,600 / $565,650
Asset Turnover Ratio = 1.02
4. 2020
Earning per share = Net Income / Weighted Average Share
Earning per share = $90,519 / [(38400+31900)/2]
Earning per share = $90,519 / $35,150
Earning per share = 2.58
2019
Earning per share = Net Income / Weighted Average Share
Earning per share = $51,714 / [(31900+30800)/2]
Earning per share = $51,714 / $31,350
Earning per share = 1.65
5. 2020
Price Earning Ratio = Price/EPS
Price Earning Ratio = $8.50/2.58
Price Earning Ratio = 3.30
2019
Price Earning Ratio = Price/EPS
Price Earning Ratio = $7.50/1.65
Price Earning Ratio = 4.55
6. 2020
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $229,800/$497100
Debt Equity Ratio = 0.46
2019
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $164,000/$433200
Debt Equity Ratio = 0.38
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.
Answer:
b. decrease Amazon sales
Explanation:
Note: "Options the question is attached as picture below"
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. If we hold all else equal, the effect of this tax would be to decrease Amazon Sales In the District of Columbia.
This action will consequentially increase the sales in local Market and then discourage online shopping along with it In Columbia district; it will decrease sales overall.
Adam decided to play a practical joke on Linda, a coworker. As Linda was leaving the office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bite out of the gun as he gave her the purse back. Which statement is correct?
A) Yes, as his conduct was intentional.
B) Yes, but only if Adam intended to cause Linda serious emotional distress.
C) No, since he was only playing a practical joke.
D) No, since Linda was not physically hurt by Adam.
Answer:
A) Yes, as his conduct was intentional.
Explanation:
Since in the question it is mentioned that adam decided to play a joke with the linda who is a coworker. Due to the acts of adam the linda was too scared during the whole incident
So as per the given options, the first option is correct as the act done by the adam is intentionally just for his fun
So, the option a is correct