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2 years ago

Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio?

Business

1 answer:

ipn [44]2 years ago

5 0

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the DuPont Analysis can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.

The basic DuPont Analysis is;

Return on Equity = $\frac{Net Income}{Revenue} * \frac{Sales}{Total Assets} * \frac{Total Assets}{Equity}$

Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.

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The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $97,456. The bank statement indicated a balance o

Alenkinab [10]

Answer:

cash account balance $97,456

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error in journalizing check ($1,305)

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reconciled cash balance $118,260

bank account balance $127,960

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deposit in transit $19,720

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Dr Cash 22,149

Cr Notes receivable 20,700

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Dr Bank fees expense 40

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3 0

2 years ago

Which of the following best defines the term commodity? a. A physical object we find, grow, or make to meet our needs and those

aleksley [76]

Answer: A physical object we find, grow, or make to meet our needs and those of others.

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It can be grown or produced to meet the specified needed requirements of the particular need it solves.

3 0

2 years ago

A manufacturing division has an average of $1,800,000 invested in assets and earned income of $720,000. The division's return on

Romashka [77]

Answer:

ROI = 0.4

Explanation:

To find the answer, we use the following formula:

Return on Investment = Profit / Investment

Now, we simply plug the amounts into the formula:

Return on Investment = $720,000 / $1,800,000

= 0.4

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2 years ago

Gary and Wilma Johnson plan to open a bus tour business taking people from their small City to historic sites along the east coa

Dovator [93]

The answer to the given question above would be Profit Margin. On the given scenario above, since they will be offering different kinds of services at once, what they should pay attention to is the profit margin or the net margin. Profit margin serves as the measurement of profitability. This is expressed in percentage and shows how much the return sales are that are generated by the company based on the amount they have initially invested.

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2 years ago

Read 2 more answers

Acme LLC has already paid $10,000,000 in Research & Development costs. Unfortunately, times have changed. Since they started

nika2105 [10]

Answer:

he best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated

Explanation:

Based on the information provided, the best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated. From solely taking into account the fixed costs of producing the products, if the company were to produce the desired amount and sell them they would recover a total of 8,000,000 from the costs that they have incurred in Research & Development. This is not taking into account the variable costs that may be incurred, still, they recover much of what they have already spent.

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2 years ago