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Slav-nsk [51]
2 years ago
15

Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $14.5 million, gross profit of $9.90 million, EBIT of $

7.6 million, net income available to common stockholders of $5.2 million, and common stock dividends of $3.2 million. The 2018 year-end balance sheet listed total assets of $54.5 million and common stockholders' equity of $23.0 million with 2.0 million shares outstanding. Calculate the following:
(a) Profit margin
(b) Gross profit margin
(c) Operating profit margin
(d) Basic earnings power
(e) Return on assets
Business
1 answer:
Alecsey [184]2 years ago
8 0

Explanation:

The computations are as follows

a. Profit margin

= Net Income available to common stockholders ÷ Net Sales

= $5.2 Million ÷ $14.5 Million

= 35.86%

b. Gross profit margin

= Gross Profit ÷ Net Sales

= $9.90 Million ÷ $14.5 Million

= 68.28%

c. Operating profit margin

= EBIT ÷ Net Sales

= $7.60 Million ÷ $14.5 Million

= 52.41%

d. Basic earning power

= EBIT ÷ Total Assets

= $7.6 Million ÷ $54.5 Million

= 13.94%

e. Return on assets

= Net Income available to common stockholders ÷ Total Assets

= $5.2 Million ÷ $54.5 Million

= 9.54%

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Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data i
maks197457 [2]

Answer: $8500

Explanation:

The total administrative expense allocated to the Meats department will be calculated thus:

= (Total administrative expense/Total Sales in square Feet) × Meat Department sales in Square Feet

= (17000/3200) × 1600

= $8500

The total administrative expense allocated to the Meats department is $8500.

5 0
1 year ago
Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital
bixtya [17]

Answer:

e. accessory equipment

Explanation:

Accessory equipment are the goods and services that are used by firms and organizations to complete their daily operation. They consist of products and services which are used in the production processes. Likewise, they are considered import which makes them expensive compared to other capital goods. These goods can easily be replaced without affecting the whole process.

8 0
1 year ago
Littman LLC placed in service on July 29, 2019, machinery and equipment (seven-year property) with a basis of $600,000. Littman'
n200080 [17]

Answer:

Option C) Littman's $179 expense will be greater than $100,000

Explanation:

Data:

Littman LLC placed in service on July 29, 2019, machinery and equipment (seven-year property) with a basis of $600,000. Littman's income for the current year before any depreciation deduction was $100,000

From the options, In order to minimize depression, Littman's $179 expense will be greater than $100,000. This will come from the profit loss reconciliation. Hence option C will be the correct option in this case.

4 0
1 year ago
You want to be a millionaire when you retire in 30 years and expect to earn 8.5 percent, compounded monthly. How much more will
Alina [70]

Answer:

more will you have to save each month 981.9

Explanation:

given data

time = 30 year = 30 × 12 = 360 months

expected earn = 8.5 % = \frac{0.085}{12} = 0.0070833

time = 10 year = 10 × 12 = 120 months

future value = millionaire = 10^{6}  

solution

we consider here saving end of this month = x

and saving end of 10 year = y

now we solve for x

10^{6} =  x × \frac{1+ r^{t}}{r} - 1    

10^{6} =  x ×  \frac{1+ 0.0070833^{360}}{0.0070833} - 1    

x = 605.8

and

10^{6} =  y × \frac{1+ r^{t}}{r} - 1

10^{6} =  y ×  \frac{1+ 0.0070833^{120}}{0.0070833} - 1

y = 1594.9

so here we require more amount to save is y - x in end of each month = 1594.9  -  605.8  = 981.9

6 0
2 years ago
Read 2 more answers
Many firms include on their employment applications a box that job seekers are asked to check if they have ever been convicted o
maria [59]

Answer:

These two statements are correct:

A. Potential employers may have believed that those with black-sounding names had completed less education.

African Americans on average have less rates of graduation from tertirary education than White Americans.

This situation might lead some employers to develop streotypes about African Americans being less educated, when it is clearly an error, and unfair, to reject a potential employee because of stereotyping instead of making an individualized analysis of his or her abilities.

D. Hiring firms may have believed that those with black-sounding names were more likely to have a criminal conviction.

African Americans on average are incarcerated more often than other ethnic groups in the US. The reasons for this are complex but poverty and racial discrimination are two big factors. This situation causes some employees to develop streotypes, leading to unfair situations as described in the first answer.

5 0
2 years ago
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