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1 year ago

Which of the following do you NOT include when calculating the closing balance of PP&E?

Business

1 answer:

oksian1 [2.3K]1 year ago

8 0

Answer:

d) Changes in working capital

Explanation:

the formula used for calculating net PP&E is:

Net PP&E = gross PP&E + capital expenditures - accumulated depreciation

PP&E represents fixed assets (plant, property, and equipment).

On the other hand, working capital involves current assets and liabilities such as cash, accounts receivables, accounts payable, inventories, taxes payable, etc.

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Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired

Svet_ta [14]

Answer:

a) 14.1%

b)1.08

c)$1500

Explanation:

Given invested assets = $650,000

Sales = $700,000

operation's income = $99,000

a)Profit margin = net income/revenue × 100%

Net income = operations income = $99000

Total revenue = sales = $700000

Profit margin = $99000/$700000×100%

Profit margin = 14.1%

b) investment turnover is the ratio of the net sales to the sum of equity and debt.

Net sales = $700000

Debt = $650,000 = invested assets

Investment turnover = Net sales/debt

Investment turnover = 700000/650000

Investment turnover = 1.08

c) residual income is the income generated after all debts and expenses has been paid.

Residual income = income from operations - returns of investment

Income from operations =$99000

Return on investment = 15% of $650000 = $97500

Residual income = $99000-$97500

Residual income =$1500

7 0

1 year ago

Read 2 more answers

Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new pro

vaieri [72.5K]

Answer:

$11

Explanation:

"The required return for the computer chip industry is 15%, and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now, at t 1) (Round your answer to 2 decimal places.)"

g = ROE*b

g = ROE * (1-Payout ratio)

g = 20% * (1-0.5)

g = 10%

P0 = D1/k-g

P0 = D0(1+g) / k-g

P0 = 0.5(1+0.10) / (0.15+0.10)

P0 = $11

S0, the market price of Chiptech stock is $11

7 0

1 year ago

. Which statement in the given text points to George being an ethical leader? George had been working as a manager in a company

SIZIF [17.4K]

Answer:

His company had been going through a lot of transition in the past year because they wanted to improve their public image.

George made sure that the restaurant served all the dishes that were popular in the locality.

Explanation:

An "ethical leader" is concerned about the beliefs and values of people in the society. In order to adapt to locality, George has to consider the company's virtues by improving their public image. This will make their restaurants desirable. This can also be done if the restaurants will make sure to know what the popular dishes are in the local area. For example, if the people prefer "halal" food, then they'll be preparing halal foods as well. This is an ethical way of respecting the people's preference in the area.

So, this explains the answers.

6 0

1 year ago

Stock Y has a beta of 1.2 and an expected return of 12.1%. Stock Z had a beta of 0.8 and an expected return of 7.85%. The risk-f

levacccp [35]

Answer:

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

Explanation:

To determine whether or not the stocks are correctly priced ,

we have to compare the required return and the expected return on each of them.

Required return = Rf +β (Rm-Rf)

Note that Rm-Rf is also known as market risk premium

Stock Y Stock Z

Required return 2.4% + 1.2(7.2%) 2.4% + 0.8(7.2%)

= 11% = 8.2%

Expected return 12.1% 7.85%

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

6 0

1 year ago

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4

torisob [31]

Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo + QH

Q 2

Where

D = Annual demand

Co = Ordering cost per order

Q = EOQ

H = Holding cost per item per annum

D = 40,000 units

Co = $48

H = 18% x $8.00 = $1.44

EOQ = √2DCo

EOQ = √2 x 40,000 x $48

$1.44

EOQ = 1,633 units

Explanation:

EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.

7 0

2 years ago