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1 year ago

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

Business

1 answer:

ipn [44]1 year ago

5 0

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> 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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Historians remind us that standardization of components -- of interchangeable parts -- was an innovation that did not occur unti

Lynna [10]

Answer:

The economic impact of standardization of components of interchangeable parts is <u>quality guarantee, productivity boost, and improved personnel performance.</u>

Explanation:

Standardization of components means that all the activities in your firm have an established, time-tested process to use.

Standardization is the process of developing, promoting and possibly mandating standards-based and compatible technologies and processes within a given industry. Standards for technologies can mandate the quality and consistency of technologies and ensure their compatibility, inter-operable and safety.

standardization of components of interchangeable parts was an innovation that did not occur until the very end of the 18th century and when it finally took off, gave rise to quality control and assurance.

6 0

1 year ago

Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped d

RSB [31]

Answer:

The total cost involved in shipping the containers to country U.S is $2,594,930

Explanation:

Consider the following information regarding Company WWG:

Total Current volume (CBM) = 190,000

Direct shipping percentage = 0.89

Direct ship Volume (CBM) = 169,100

Consolidation center volume = 190,000 - 169,100 = 20,900

Calculate the shipping cost of the company as shown below:

Shipping Cost calculations

Direct ship by Container type (in Feet) 20 40

Volume (%) 0.21 0.79

Volume (CBM) 169,100*0.21 169,100*0.79

= 35,511 =133,589

Container capacity used 85% 85%

Container center by container type

Volume (%) = 100

Volume (CBM) = 20,900

Container capacity used = 96%

Container capacity (CBM) (34)

Container shipped = 35,511/ (34*0.85) =1,229

Shipping Cost per container = $480

Shipping Cost by container size ($) = 1,229*480 4589,920

Container capacity (CBM) (67)

Container shipped = 133,589/ (0.85*67) + 20,900/ (0.96*67) = 2,671

Shipping Cost per container = $600

Shipping Cost by container size ($) = 2,671*600 = $1,602,600

Calculate the total shipping cost as shown below:

Total shipping cost = $589,920+$1,602,600 = $2,192,520

Calculate the consolidation center operating cost as shown below:

Number of centers = 4

Annual fixed cost per center = $75,000

Total annual fixed cost = $75,000*4 =$300,000

Variable cost per CBM = $4.9

Total annual variable cost = 20,900*$4.9 = $102,410

Total annual consolidation center costs = $300,000+$102,410= $402,410

Calculate the total cost involved in shipping containers to the Country U as shown below:

Total Cost = Total Shipping Cost + Total Annual Consolidation center Cost

= $2,192,520 + $402,410

= $2,594,930

Hence, the total cost involved in shipping the containers to country U.S is $2,594,930.

4 0

1 year ago

You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye

Alchen [17]

Answer:

Future value= $151,018.51

Explanation:

Future value of money measures how much a present amount of money will be in the future at a given interest rate.

The interest gained on money shows the time value of money. One dollar today is less than one dollar in one year's time

The formula for future value is

Future value = Present value * (1 + rate)^time

As we have two periods in this case (10 years and 20 years)

Future value = Present value * {(1 + rate1)^time1} * {(1 + rate2)^time2}

Future value = 12,500 * {(1 + 0.07)^10} * {(1 + 0.095)^20}

Future value= $151,018.51

4 0

1 year ago

Which of the following is NOT part of a successful quality strategy?

Romashka-Z-Leto [24]

Answer:

D. Minimize quality costs throughout the organization

Explanation:

A quality strategy is part of the organization's strategy to maintain quality standards and to maintain productivity at a higher significance level.

For the same various companies have a TQM total quality management systems in place that checks the quality must be maintained as a standard, the company must be aware and must show the participation in its implementation, must be of least cost and rewarding in nature.

Thus to build or forester an organization's culture of quality and to engage all employees in building these principles through a well-maintained standard of the organization.

7 0

1 year ago

Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $ 2

inn [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Budgeted Sales:

January $ 237,400

February 251,400

March 336,600

Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible.

Cash collection March:

Cash sales= 336,600*0.3= 100,980

Credit Sales March= (336,600*0.7*0.1)= 23,562

From February= (251,400*0.7*0.5)= 87,990

From January= (237,400*0.7*0.36)= 59,824.8

Total= 272,356.8

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1 year ago