Business College

Dawson Electronic Services had revenues of $106,000 and expenses of $63,000 for the year. Its assets at the beginning of the year were $413,000. At the end of the year assets were worth $463,000. Calculate its return on assets.

Answers

Answer 1

Answer:Return On Assets=9.8%

Explanation:

Return On Assets =Net income/Average total assets

But

Net income=Revenues-Expenses

=$106,000 - $63,000

= $43,000

And Average total assets  is given as  (Beginning assets +Ending assets)/2

= ($413,000+$463000)/2=$876,000 /2

=$438,000

Therefore Return On Assets =Net income/Average total assets

= $43,000 / $438,000

=0.098 x 100

=9.8%

Related Questions

Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?

Answers

Answer:

6.89 years

Explanation:

The discounted payback period can be calculated by using the following table

Year        Cash flows                PV(13%)             Cumulative Cash flows

0               (70000)                    (70000)                           (70000)

1           16000                    14159.29                       (55840.71)

2           16000                    12530.35                      (43310.36)

3           16000                       11088.80                      (32221.56)

4           16000                        9813.10                        (22408.46)

5           16000                        8684.16                        (13724.30)

6           16000                         7685.10                       (6039.20)

7           16000                          6800.97                         761.77

8           16000                          6018.56                       6780.33

Discounted Payback = 6 years + 6039/ 6801

Discounted Payback = 6.89 years

A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment

Answers

Answer:

4 years

Explanation:

We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.

DATA

Amount borrowed = $635.52

future amount = $1,000

Interest rate = 12%

Time period (n) = ?

Solution

Amount borrowed = future amount x Present value factor (12%, n)

$635.52 = $1,000 x PV factor(12%, n)

0.63552 = PV factor(12%, n)

If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.

Prices for airline tickets change on average about once per month. This would suggest that airline ticket prices are

Answers

Answer:

relatively flexible

Explanation:

Flexible pricing is when there is room for negotiation of prices of a product between the buyers and sellers.

So the price is prone to change in short amount of time.

Sticky price on the other hand tends to be non negotiable and the does not change over time.in the given scenario prices for airline tickets change on average about once per month.

So there is constant change of the price every month. Meaning the buyer can convince the seller to change his offering price.

The price is relatively flexible

Other Questions
Please help me I will really appreciate it!!! Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The growth rate is zero. The growth rate is negative. The required rate of return is greater than the growth rate. The required rate of return is more than 50%. None of the above assumptions would invalidate the model. -Select- Write an expression to model the following situation: A submarine was 32 m below sea level. It descended 28 more meters.What is its new position below sea level?32 + 2832 2832 + 2832 28 Most Brazilians are descendents of people from: Spain Holland Africa Portugal If the area of the rectangle is(xA^34x^215x+21) and the width is (x-6), what is the length? Please help. Solve the System of Equations by Graphingy=43x+4y=4 help! my mom said im grounded if I don't get a good grade True or False: A system of two equations in two variables whose graphs are a parabola and a circle can have four real ordered-pair solutions. Please someone do this I have a lot of school to do and I can't because i just got home and it's due by 7! I'll give brainiest!!! And five stars!Please define the following terms:mercantilism, import, export, enumerated article, legislature, indentured servant, Navigation Acts, Dominion of New England, English Bill of Rights. What is the difference between physical & chemical changes?Slate whether each is an example of a Physleat (P) or Chemteal (C) property1. Arock's density2. boiling point of Gatorade3. ability of an old car to rust4. red color of a pe appleS ability of wood to ignite8. bitler taste of a lemon7. melting point of wax8. hardness of marble9. Luster (shininess) of gold Find the slope of the line. CAN SOMEONE PLEASE HELP ME WITH GRAPHING THIS? AND PLEASE EXPLAIN HOW TO GRAPH IT What is the form of energy that our eyes can detect?A. Sound EnergyB. Chemical EnergyC. Light EnergyD. Thermal Energy what was the main goal of the declaration of independence.A: to persuade other countries to adopt similar democratic government.B: to explain to the world their decision to leave the British empire.C: to end British taxes on the coloniesD: to overturn George III's rule in England. 11) Nitrogen oxides undergo many interesting reactions in the environment and in industry. Given the following information, calculate H for the overall equation: 2 NO2(g) + 1/2 O2(g) N2O5(s). N2O5(s) 2 NO(g) + 3/2 O2(g), deltaH = 223.7 kJ NO2(g) NO(g) + 1/2 O2(g), delataH = 57.1 kJ delataH = ______kJ 12))))Write all coefficients, even if they are fractions or 1.) (a) (Apply fractions as needed.) ______ _____(s) + ______ ______ (g) 5 NaCl(s) (b) (Use the lowest possible coefficients.) _______ _____ (s) + ______ _____(g) _____CaCl2(s) (c) (Apply fractions as needed.) _____ _____(g) _____O3(g) (d) (Apply fractions as needed.) ______Mg(s) + _____ ______(s) + _____ ____(g) _____Mg3(PO4)2(s) An author writes an essay about texting while driving. Which factor would most affect the authors point of view?A. The author has young children and is protective of them.B. The author lives in a very busy city with lots of traffic.C. The authors son was injured in a car accident while texting.D. The author owns a cell phone and drives a sports car. what is the slope of ( -4,-1) , (8 - -7) A weakness of the Articles of Confederation was that MOSTgovernmental power resided in the A. State governmentsB. Federal legislatureC. Judicial branch Juan has a piano recital next month. Last week he practiced for 12 hours in the morning and 14 hours in the afternoon. Each practice session is 3 hours long. How many full practices did Juan complete 5. (3.02) A main goal of the United States during the Spanish-American War was to ...annex Florida.O gain spheres of influence in South America.O protect business investments in Spain.free Cuba from Spanish rule.