NetonBe makes sweaters, which traditionally involved the following steps: dyeing (i.e., into six different colors), knitting of the dyed fabric into three sizes each (small, medium, and large) and then distributing to the stores. As such, there were 18 different sweater color & size combinations in the end, each with a demand that is normally distributed with a mean of 1,000 and a standard deviation of 100. NetonBe has just developed a new system that allows them to knit a generic color sweater first, and then dyeing this generic sweater. As such, they only need to hold safety inventory for the three sizes, each with an average demand of 6,000. What would be the standard deviation in demand for each of these three generic sweaters?
a) Approximately 600
b) Approximately 300
c) Approximately 245
d) Approximately 60

Answers

Answer 1

Answer:

NetonBe

The standard deviation in demand for each of these three generic sweaters is:

a) Approximately 600

Explanation:

a) Data and Calculations:

Different sweater color & size combinations in the end = 18

Normally distributed demand mean of size = 1,000

Total demand of sizes = 18,000

Standard deviation of each size = 100

Standard deviation = 10% of mean (100/1,000 * 100)

Standard deviation for the total sizes = 1,800 (18,000 * 10%)

Average demand of new three sizes = 6,000

Total demand for the three new sizes = 18,000 (6,000 * 3)

Therefore, the standard deviation in demand for each of these three generic sweaters will be = 600 (6,000 * 10%)


Related Questions

XYZ is considering two alternatives: repairing a damaged van or selling it as is and buying a comparable used van. Information related to this decision is provided below: Initial cost of the damaged van $30,000 Accumulated depreciation to date on van $18,000 Salvage value of the damaged van $ 1,000 Cost to repair damaged van $ 5,000 Cost of a comparable used van $10,000 Based on the information above, XYZ would be financially better off: Group of answer choices

Answers

Answer:

d. $4.000 by repairing the damaged van.

Explanation:

Options are "a. $1,000 by buying the comparable van. b. $2,000 by buying the comparable van c. $2.000 by repairing the damaged van. d. $4.000 by repairing the damaged van."

Details                                                                   Amount

Cost of comparable used Van                            $10,000

Less: Repair cost                                                  $5,000

Less: Salvage value before repair after crash   $1,000

Benefit from repairing damaged van               $4,000

John believes his sales team's performance is due to outside forces, like economic and market factors. Which of the following best describes is John's locus of control?

a. External
b. Market driven
c. Internal
d. Based on labor trends.

Answers

Answer:

a. External

Explanation:

There are only two types of locus of control and these are internal and external. In this scenario, John's locus of control would be external. This is because John is connecting various external forces that he cannot control, to the performance of the sales team. This indicates an external locus of control. If John where to instead attribute something such as hard work and training to his sales team's perfomance, then that would be considered an internal locus of control.

Westside Plumbing and Heating Company is offered a contract for$100,000 to provide plumbing for a new building. The labor and equip-ment costs are calculated to be $60,000 for fulfilling the contract. West-side has materials in its inventory to complete the job. The raw ma-terials initially cost the firm $50,000; however the material prices havedeclined in the interim and now cost only $37,500. Thus if thefirmchose not to accept the contract and sells the materials, they wouldincur a loss of $12,500. Material prices are not expected to go up inthe future. Should Westside accept the contract. Explain your answer.

Answers

Answer:

Westside Plumbing and Heating Company

Westside should accept the contract.

By accepting the contract at the price of $100,000, Westside incurs a total cost of $97,500 and makes a little profit of $2,500 ($100,000 - $97,500).  The contract enables Westside to utilize the materials that it has in inventory instead of allowing it to deteriorate further in value.

Explanation:

a) Data and Calculations:

Contract price = $100,000

Labor and equipment costs = $60,000

Original cost of materials = $50,000

Materials market price = $37,500

Total costs to be incurred = $97,500 ($60,000 + $37,500)

Profit to be earned = $2,500 ($100,000 - $97,500)

Robot uses competitive analysis processs to collect data on what their competitors are doing. Which of the following is not a test does the company puts each competitor's robot through?
A. Drop.
B. Lab.
C. Edge.
D. Straight line.
E. Box.

Answers

Answer:

Drop

Explanation:

Competitive Analysis

This is commonly refered to as a form of research review and final evaluation of one's competitors. It is beneficial due to the fact that the information you obtained/known can help you to be based on your competitor weaknesses

When starting this analysis, always you set up expectations that can be achieved so that one's team has enough time to fully research, analyze, and share their findings.

Competitive analysis, as a part of your business planning, is a means by which an individual believes that their business will survive and thrive competitively in the market because the individual has full attachment to current competitors and one's potential competition too. Putting the robot through a drop test is not correct as it may destroy it.

Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. The company's after-tax cost of capital is 9.0% and the firm's total investor supplied operating capital employed equals $385 million. What is the company's EVA

Answers

Answer:

$31.76 million

Explanation:

Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:

EVA=NOPAT-(WACC*invested capital)

NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)

Net income=Earnings before tax*(1-tax rate)

net income= $55 million

EBT=unknown

tax rate=40.0%

$55=EBT*(1-40.0%)

$55=EBT*0.60

EBT=$55/0.60

EBT=$91.67

EBIT=EBT+interest

EBIT=$91.67+$19

EBIT=$110.67

NOPAT=$110.67*(1-40%)

NOPAT=$66.41

WACC=9.0%

perating capital employed=$385

EVA=$66.41-(9.0%*$385)

EVA=$31.76 million

operating capital em

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 27,100 units of output each month. However, it has an absolute maximum output capability of 33,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 17,470 units in October, what is the capacity utilization rate in October for this factory

Answers

Answer: 64.47%

Explanation:

Units produced in October = 17470

Units production in the most efficient way = 27,100

Therefore, the capacity utilization rate in October for the factory will be:

= Units produced in October / Units production in the most efficient way

= 17470 / 27100

= 0.6447

= 64.47%

The capacity utilization rate in October for this factory is 64.47%.

The quantity demanded x for a product is inversely proportional to the cube of the price p for p > 1. When the price is $10 per unit, the quantity demanded is 64 units. The initial cost is $140 and the cost per unit is $4. What price will yield a maximum profit? (Round your answer to two decimal places.)
$______

Answers

Answer:

$6.00

Explanation:

Given data

quantity demanded ( x )  ∝ 1 / p^3       for p > 1

when p = $10/unit , x = 64

initial cost = $140, cost per unit = $4

Determine the price that will yield a maximum profit

x = k/p^3 ----- ( 1 ).  when x = 64 , p = $10 , k = constant

64 = k/10^3

k = 64 * ( 10^3 )

  = 64000

back to equation 1

x = 64000 / p^3

∴ p = 40 / ∛x

next calculate the value of revenue generated

Revenue(Rx) = P(price ) * x ( quantity )

               = 40 / ∛x * x   =  40 x^2/3

next calculate Total cost of product

C(x) = 140 + 4x

Maximum Profit  generated = R(x) - C(x) = 0

                                              = 40x^2/3 - 140 + 4x  = 0

                                              =  40(2/3) x^(2/3 -1) - 0 - 4 = 0

                                            ∴ ∛x = 20/3    ∴     x = (20/3 ) ^3 = 296

profit is maximum at x(quantity demanded ) = 296 units

hence the price that will yield a maximum profit

P = 40 / ∛x

  = ( 40 / (20/3) )  = $6

                                             

Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock. The following amounts were distributed as dividends:
Year 1 $21,600
Year 2 4,000
Year 3 100,800
Determine the dividends per share for preferred and common stock for each year.

Answers

year 3 i just took the test trust me it is year 3

U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of Group of answer choices

Answers

Answer: consumer needs, political and legal structures, and social norms vary by country.

Explanation:

It should be noted that different countries have different customer needs, values and social norms with regards to how business is done.

Therefore, it's vital for any company that's moving into the international market to always have this in mind and therefore should be sensitive to these needs in order to achieve its goals.

Lil Uzi Vert or Gunna?​

Answers

Lil Uzi Vert but of course gunna is a legend

Answer:

Lil uzi

Explanation:

Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,300. 3. Paid advertising expense, $2,750. 5. Paid cash for supplies, $1,180. 6. Purchased office equipment on account, $18,100. 12. Received cash from customers on account, $5,900. 20. Paid creditor on account, $1,730. 27. Paid cash for miscellaneous expenses, $750. 30. Paid telephone bill for the month, $280. 31. Fees earned and billed to customers for the month, $39,300. 31. Paid electricity bill for the month, $470. 31. Paid dividends, $3,000.

Answers

Answer:

Date        Accounts title                        Debit$      Credit$

1-Oct        Rent expense Account          4300

                     Cash account                                      4300

3-Oct       Advertisement expense         2760

                     Cash account                                      2760

5-Oct     Supplies Account                     1180

                    Cash account                                       1180

6-Oct     Office equipment Account      18100

                    Accounts payable                                18100

10-Oct    Cash account                            5900

                    Accounts receivable                            5900

15-Oct     Accounts payable                     1730

                    Cash account                                        1730

27-Oct    Misc expense Account              750

                     Cash account                                      750

30-Oct    Utility expense Account            280

                     Cash account                                      280

31-Oct     Accounts receivable Account  39300

                     Service revenue                                 39300

31-Oct    Utility expense Account            470

                     Cash account                                      470

31-Oct    Jason payne, Drawings            3000

                    Cash account                                        3000

The ________ function is responsible for making sure customers are aware of the company's products. Group of answer choices

Answers

Answer:

sales and marketing.

Explanation:

The sales and marketing function is essential to ensure that the customer knows and has access to the company's products through an effective communication, distribution and customer service system.

There needs to be planning and research to identify who your potential consumer is, what are their needs and preferences, where they usually buy the product, how often, what their income, which media they access most, etc., so that there is the correct allocation of resources for advertising, product distribution and other variables, so that the product is available to the customer in the right place, in the right quantity, at the right time and quality.

Manetti Corporation produces and sells a single product. Data concerning that product appear below: The break-even in monthly unit sales is closest to: Group of answer choices

Answers

Answer: 4,030 units

Explanation:

The breakeven point of sales can be calculated by the formula:

= Fixed cost / Contribution margin

Contribution margin = Selling price per unit - Variable cost per unit

= 150 - 73.50

= $76.50

Breakeven point of sales = 308,295 / 76.50

= 4,030 units

A firm just paid its annual dividend of $1.80 and expects to increase that dividend each year. The discount rate is 11 percent. Which one of these correctly identifies an error when computing the current value of this firm's stock?
a. Po = $1.80/(0.11 -0.03): The growth rate exceeds its limitation.
b. Po = ($1.80 x 1.12(0.11 -0.03); The growth rate in the denominator should be 12 percent to match the growth rate in the numerator.
c. Po = ($1.80 x (1 +.09)[0.11 -.09); The growth rate exceeds it limitation for using this formula
d. Po = $1.80/(0.11 -0.025); The value of Dt, is incorrect as $1.80 equals Do.

Answers

Answer:

d. Po = $1.80/(0.11 -0.025); The value of D1, is incorrect as $1.80 equals Do.

Explanation:

Calculation to correctly identifies which one of these is an error when computing the current value of this firm's stock

P0 = $1.80/(0.11 - 0.025)

P0 = $1.80/0.085

P0=$9.76

Therefore Based on the information given Po = $1.80/(0.11 -0.025); because The value of D1, is INCORRECT as $1.80 equals Do.

Describe about comparative cost and absolute advantages of international trade​

Answers

Answer:

Here's what I know.

Explanation:

Comparative cost talks about the difference or similarities in cost between two or more prices of good or services.

The advantages of international trade are...

1. It creates harmony between countries.

2. It encourages countries to manufacture their own products.

3. It is a source or income/revenue to the producing countries.

4. It is a good employment opportunity.

5. It improves a country's standard of living.

Hope these help... ♥

Ormand Organic Grocery has invested in a yogurt stand for its store. The investment cost the company $100,000. Variable materials, preparation, and marketing costs are expected to be $1.30 per unit and fixed costs are estimated at $7,400 a year. If actual sales were 21,400 servings, what would the ROI be using the sales price of $2.40

Answers

Answer:

15.4%

Explanation:

Calculation to determine what would the ROI be

ROI=[ ( $2.40 - $1.30) * 21,400 - $7,400]/100,000

ROI=($1.1 * 14,000)/100,000

ROI=$15,400/100,000

ROI=0.154*100

ROI=15.4%

Therefore the ROI would be 15.4%

If a company reports a net loss, it Group of answer choices may still have a net increase in cash. will not be able to pay cash dividends. will not be able to get a loan. will not be able to make capital expenditures.

Answers

Answer:

may still have a net increase in cash

Explanation:

In the case when the company recognized the net loss so it might be the condition that there is an increase in the cash balance as in the case as the closing balance should be more than the beginning balance of cash

So as per the given question, the above should be the answer and the same is relevant

Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $430,000 on sales of $1,300,000. The companyâs average operating assets for the year were $1,500,000 and its minimum required rate of return was 10%.
Required:Compute the companyâs residual income for the year.Average Operating Assets-Net Operating Income-Minimum required return-Residual income-

Answers

Answer: $280,000

Explanation:

Residual income can be calculated by the formula:

= Net operating income - (Average operating asset * Minimum required rate)

= 430,000 - (1,500,000 * 10%)

= 430,000 - 150,000

= $280,000

Alternative Financing Plans
Owen Co. is considering the following alternative financing plans:
Plan 1 Plan 2
Issue 7% bonds (at face value) $5,000,000 $3,400,000
Issue preferred $1 stock, $20 par — 3,600,000
Issue common stock, $25 par 5,000,000 3,000,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock, assuming income before bond interest and income tax is $750,000.
Enter answers in dollars and cents, rounding to the nearest whole cent.
Plan 1 $_____________________ Earnings per share on common stock
Plan 2 $_______________________ Earnings per share on common stock

Answers

Answer:

Owen Co.

Alternative Financing Plans

                                                    Plan 1              Plan 2

Earnings per share                     $1.20               $1.06

Explanation:

a) Data and Calculations:

                                                         Plan 1              Plan 2

Issue 7% bonds (at face value) $5,000,000      $3,400,000

Issue preferred $1 stock, $20 par     —                3,600,000

Issue common stock, $25 par   5,000,000         3,000,000

Income tax is estimated at 40% of income.

EBIT =                                           $750,000          $750,000

Interest on bonds                         350,000             238,000

Income before taxes                  $400,000           $512,000

Income tax                                     160,000             204,800

Net income                                 $240,000          $307,200

Preferred dividend                          -                     $180,000

Earnings available to common

stockholders                            $240,000           $127,200

Outstanding shares                   200,000             120,000

Earnings per share                          $1.20                 $1.06  

                    $1.20 ($240,000/200,000)           $1.06 ($127,200/120,000)

Preferred stock dividend rate = 5% ($1/$20 * 100)

Preferred stock dividend = $180,000 ($3,600,000/$20 * $1)

or 5% of $3,600,000

Explain the term​ "marginal rate of technical​ substitution." ​(Assume a​ two-input production function.​)

Answers

Answer:

La relación marginal técnica de sustitución (RMTS) expresa la proporción en que un factor productivo se puede sustituir por otro, manteniendo constante la producción total.

Esta relación técnica busca sistemáticamente obtener la cantidad de un factor de producción que hay que disminuir con el objetivo de aumentar en cierto nivel, otro factor productivo. En tal caso la curva de la producción se mantiene en la misma isocuanta de tal forma que tenemos: RMTS=   Δ K / Δ L.

Explanation:

.

Sheffield Corp. has a materials price standard of $2.00 per pound. 4900 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4900 pounds, although the standard quantity allowed for the output was 4000 pounds. Sheffield Corp.'s materials quantity variance is:_____.
a. $1980 U.
b. $1800 F.
c. $1800 U.
d. $1980 F.

Answers

Answer:

a. $1,980 U

Explanation:

We will compute the direct materials quantity variance using the formula below.

Direct materials quantity variance =

(Standard quantity allowed - Actual quantity of materials) × Materials price standard

Fixing in the values, we'll have;

Direct materials quantity variance

= (4,000 pounds - 4,900 pounds) × $2.20 per pound

= -900 pounds × $2.20 per pound

= -$1,980

= $1,980 U

Transactions for Jayne Company for the month of June are presented below.

June:
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.

Required:
Journalize the transaction.

Answers

Answer:

June 1

Debit : Cash  $5,000

Credit : Common Stock $5,000

June 2

Debit : equipment $1,100

Credit : account payable $1,100

Explanation:

Journalize the transaction.

(Deferred Tax Asset with and without valuation Account) Jennifer Capriati Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2016 due to a single cumulative temporary difference of$375,000. At the end of 2017, this same temporary difference has increased to a cumulative amount of $450,000. Taxable income for 2017 is$820,000. The tax rate is 40% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2016. Instructions (a) Record income tax expense, deferred income taxes, and income taxes payable for 2017, assuming that it is more likely than not that the deferred tax asset will be realized. (b) Assuming that it is more likely than not that$30,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2017 to record the valuation account.

Answers

Answer:

a. Income Tax Expense (Dr.) $298,000

Deferred Tax (Dr.) $30,000

Income Tax Payable (Cr.) $328,000

Explanation:

b. Income Tax expense (Dr.) $30,000

Allowance to reduce deferred tax value to NRV (Cr.) $30,000

Income tax payable is calculated based on tax rate of 40%.

$820,000 * 40% = $382,000

Piedmont Company segments its business into two regions - North and South.
The company prepared the contribution format segmented income statement shown below:
Total Company North South
Sales $800,000 $600,000 $200,000
Variable expenses 560,000 480,000 80,000
Contribution margin 240,000 120,000 120,000
Traceable fixed expenses 122,000 61,000 61,000
Segment margin $118,000 $59,000 $59,000
Common fixed expenses 52,000
Net operating income $66,000
Required:
1. Compute the company-wide break-even point in dollar sales.
2. Compute the break-even point in dollar sales for the North region.
3. Compute the break-even point in dollar sales for the South region.

Answers

Answer:

1. Company-wide break-even point in dollar sales:

Break even point in dollar sales = (Traceable fixed expenses + Common fixed expenses) / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 240,000 / 800,000 * 100%

= 30%

Break even point in dollar sales :

=  (122,000 + 52,000) / 30%

= $580,000

2. Break-even point in dollar sales for the North region.

Break even point in dollar sales = Traceable fixed costs / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 120,000 / 600,000 * 100%

= 20%

Break even point in dollar sales :

= 61,000 / 20%

= $305,000

3. Break-even point in dollar sales for the South region.

Break even point in dollar sales = Traceable fixed costs / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 120,000 / 200,000 * 100%

= 60%

Break even point in dollar sales :

= 61,000 / 60%

= $101,666.67

In deciding who should chair the wellness committee, several members identified Ian, a tall, handsome 40-ish staff accountant with a lively sense of humor, as someone who would do a good job. It is possible that the committee members were operating under which leadership approach?

a. Traits approach
b. Situational approach
c. Functional approach
d. Relational approach

Answers

Answer:

a. Traits approach

Explanation:

It is correct to state that the committee members were operating under the leadership traits approach, which corresponds to the collective perception of an individual's personality through their personal characteristics that are outstanding and that make them stand out among other individuals.

As in the case of Ian, who was perceived by many members as a person with a lively sense of humor, as someone who would do a good job.

Rudy's and Blackstone are all-equity firms. Rudy's has 1,200 shares outstanding at a market price of $36 a share. Blackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $48,000 in cash. What is the merger premium per share

Answers

Answer:

$4

Explanation:

Calculation to determine the merger premium per share

Using this formula

Merger premium per share=(Cash/Shares outstanding)-Market price

Let plug in the formula

Merger premium per share = ($48,000 / 1,200) - $36

Merger premium per share=$40-$36

Merger premium per share=$4

Therefore the merger premium per share is $4

For each of the below, indicate where each item should be presented in the statement of cash flows (using the indirect method) using the legend below. Also, indicate how cash flows are affected. Legend for BLANK 1: A - operating activities B - investing activities C - financing activities D - significant noncash investing and financing activities Legend for BLANK 2: I - Increase D - Decrease N - No effect

Answers

Answer:

                                                                                        Blank 1      Blank 2

i. Depreciation expense                                                       A               I

ii. Purchase of office equipment                                          B               D

iii. Decrease in accounts receivable                                    A                I

iv. Payment of cash dividends                                              C               D

v. Conversion of bonds into common stock                        D               N

vi. Sold land and warehouse used in the corp.                    B                I

vii. Gain on sale of land and warehouse in part vi.              A               D

viii. Issued common stock for cash                                       C               I

ix. Decrease in accounts payable                                         A               D

x. Increase in inventory                                                          A               D

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.

How each of the item will appear in the  the statement of cash flows (using the indirect method) is also provided below:

XYZ Company

Statement of Cash Flows (Indirect Method Format)

For the year...

Details                                                                                   $                 $  

Operating activities:

Net profit                                                                             xxx

Adjustment to reconcile net income:

i. Depreciation expense                                                     xx

iii. Decrease in accounts receivable                                  xx

vii. Gain on sale of land and warehouse in part vi.          (xx)

ix. Decrease in accounts payable                                      (xx)

x. Increase in inventory                                                      (xx)    

Net cash flows from operating activities                                             xxx

Investing activities:

ii. Purchase of office equipment                                          (xx)

vi. Sold land and warehouse used in the corporation        xx  

Net cash flows from investing activities                                               xxx

Financing activities:

iv. Payment of cash dividends                                              (xx)

viii. Issued common stock for cash                                       xx  

Net cash flows from investing activities                                                 xxx  

Net cash flow for the year                                                                       xxx

Beginning cash balance                                                                          xxx  

Ending cash balance                                                                                xxx  

Note: The does not affect the cash flows statement:

v. Conversion of bonds into common stock

The phase of the business cycle with the highest level of GDP and the lowest unemployment rate is called an?

Answers

Answer:

Expansion phase

Explanation:

Expansion is an economic cycle phase in which real gross domestic product rises for two or more months in a succession, going from a trough to a high. Expansion is often known as an improving economy since it is usually followed by an decrease in unemployment, consumer sentiment, and commodity prices.

Answer:

peak

Explanation:

All of the following questions are open-ended problems. You must compute an answer for every problem. For percentage answers, calculate your answer as a percent rounded to 2 decimal places. For example, you would record ROA = .1263974 as 12.64% (note that on D2L you will enter 12.64 without the percent sign). For dollar answers, round to the nearest dollar. For example, you would record $12,345.83943 as $12,346 (note that on D2L you will enter 12346 without a comma and without the dollar sign).13. Felton Farm Supplies, Inc. has an ROA (return on assets) of 12 percent, total assets of $1,000,000 and a net profit margin of 4.25 percent. What are Felton Farm Supplies annual sales?14. Krisle and Kringle's debt ratio = 72.0%. What is the company’s debt-to-equity ratio? (Enter answer as a ratio rounded to 2 decimal places – that is, do not convert to a percent; for example, enter 80/35 = 2.2857 as 2.29).15. Philips, Inc has a debt ratio of 42.5% and ROE = 15%. What is Phillips’ ROA? (Enter answer as a percent).16. A firm has an ROA of 16% and a debt/equity ratio of 1.45. The firm's ROE is _________. (Enter answer as a percent).17. Assume that XYZ, Inc. has:Debt ratio = 70% Net profit margin = 15% Return on assets (ROA) = 7.5% Find XYZ’s Total Asset Turnover ratio. (Enter answer as a ratio – that is, do not convert to a percent).

Answers

Solution :

13. Net income = total assets x ROA

                   = $ 1,000,000 x 12%

                  = $ 120,000

Net Income for company is $120,000.

Net Profit margin = 4.25%

Total sales = net income / net profit margin

                  = $ 120,000 / 4.25%

                  = $ 2,823,529

Total sales for company is $ 2,823,529

14. Debt ratio = 72%

   So weight of debt = 72%

   Weight of equity = 1 - 72%

                                = 28%

   Debt equity ratio  [tex]$=\frac{72 \%}{28 \%}$[/tex]  

                                 =  2.57

   Debt equity ratio is 2.57

15. Debt ratio = 42.50%

So, weight of debt = 42.50%

Weight of equity = 1 - 42.50%

                             = 57.50%

Weight of equity is 57.50%.

Return on equity = 15%.

Return on assets = 57.50% × 15%

                            = 8.625%

Return on assets is 8.625%.

16.

Debt Equity ratio = 1.45

Weight of debt = 59.18%

Weight of equity = 40.82%

Return on assets = 16%

Return on equity = 16% / 40.82%

                              = 39.20%

Return on equity is 39.20%.

17.

Total Assets turnover = Sales / Total Assets

                                     = (Net Income / Total Assets) / (Net Income / Sales)

                                    = ROA / Net Profit margin

                                      = 7.50% / 15%

                                      = 0.50

Total Assets turnover is 0.50.

A company receives $176, of which $16 is for sales tax. The journal entry to record the sale would include a

Answers

Answer:

Explanation:

Cash 176

     Sales revenue.   160

     Sales tax payable 16

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