California Covertibles has sales of $11,655,000, an ROE of 17.64%, and a total asset turnover of 2.89 times. What is the company’s net income if the firm has a debt-to-equity ratio of 1.43?

Answer: $292,754.76

Explanation:

The company's net income will be calculated thus:

First, we need to know the asset invested which will be:

Asset turnover = Net sales / Asset invested

2.89 = 11,655,000 / Asset

Asset invested = 11,655,000 /2.89

Asset invested = $4,032,871.97

Then, the weight of equity will be:

= 1 / (1+1.43)

= 1 /2.43

= 0.41152

Then, the equity will be:

= $4,032,871.97 × 0.41152

= $1,659,607.47

ROE = Net income / Equity

17.64% = Net income/Equity

0.1764 = Net Income / 1,659,607.47

Therefore, Net income will be:

= $1,659,607.47 × 0.1764

= $292,754.76

Solve the problem.

For two events, A and B, P( A) = .4, P( B) = .7, and P( A ∩ B) = .2. Find P( A | B).

.29

.5

.14

.08

Rossi Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.

Rossi, Inc.'s total materials variance is:______

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Required:
Calculate the number of units that must be sold each month for the firm to break even. Assume current sales are $418,000.
Calculate the margin of safety and the margin of safety ratio.
Calculate operating income if 7,000 units are sold in a month.
Calculate operating income if the selling price is raised to $47 per unit, advertising expenditures are increased by $8,000 per month, and monthly unit sales volume becomes 7,600 units.
Assume that the firm adds another product to its product line and that the new product sells for $22 per unit, has variable costs of $14 per unit, and causes fixed expenses in total to increase to $83,000 per month. Calculate the firm's operating income if 7,000 units of the original product and 4,300 units of the new product are sold each month. For the original product, use the selling price and variable cost data given in the problem statement.
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YEAR OF PURCHASE ANNUAL DEPRECIATION
1985 - 1995 $2000
1996 - 2005 $1800
2006 - 2015 $1600
2016 - Present $1400

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Required:
What is true for the Year 2 government-wide financial statement?

Cosmo breaks his fly rod while fly fishing in a remote area of Colorado. He goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up over the price he would pay at home in California. To his surprise, the price is exactly the same as at home. This is most likely due to

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Current assets $9,000 Net income $70,000
Current liabilities 4,000 Common stock 10,000
Average assets 28,000 Total liabilities 6,000
Total assets 30,000 Retained earnings 20,000

Write your response rounded to the nearest whole number only.

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Required:
a. Calculate the variable cost per calculator.
b. The ending inventory of pocket calculators was 750 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of February be different under variable costing than under absorption costing?
c. Express the pocket calculator cost in a cost formula.

Fill in the missing amounts.
Crane Company Sheridan Company
Sales revenue $94,200 $enter a dollar amount Sales returns and allowances enter a dollar amount $ 3,000 Net sales 80,200 100,000 Cost of goods sold 54,200 enter a dollar amount Gross profit $enter a subtotal of the two previous amounts 50,000 Operating expenses 14,700 enter a dollar amount Net income $enter a total net income 15,600
Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%. )
Crane Company Sheridan Company
Profit margin
Gross profit rate
SHOW LIST OF ACCOUNTS
LINK TO TEXT LINK TO TEXT

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Raw materials $200,000
Direct labor 100,000
Manufacturing overhead 200,000
Selling and administrative expense 150,000
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b. $385,000.
c. $405,000.
d. $605,000

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B. $81,000
C. $52,500
D. $28,350
E. $22,500

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Which bond you would buy?
1) one-year bond
2) two-year bond
3) three-year bond

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