Answer:
Growth rate = 7.50%
Explanation:
Given:
Return on investment = 15%
Retention ratio = [1.5 / 3] 100 = 50%
Find:
Growth rate
Computation:
Growth rate = Return on investment*Retention ratio
Growth rate = 15% x 50%
Growth rate = 7.50%
Lucia’s analysis is subject to assumptions because(c) The analysis lacks validity if the total fixed costs required for the calculated break-even point generates too low of capacity.
Explanation:
Cost-volume-profit analysis is used to make short-term decisions.
Cost-volume-profit (CVP) analysis is used to study the changes in cost and volume and how its impact on the company's operating income and net income.
While performing <u>Cost-volume-profit (CVP) analysis</u> several assumptions are made like assuming the Sales price per unit to be constant. Variable costs per unit to be constant.
The five basic component of CVP analysis includes
- volume or level of activity
- unit selling price
- variable cost per unit
- total fixed cost
- sales mix.
Answer:
Tanya
Taxable Income is:
$23,564
Explanation:
a) Data and Calculations:
Gross Income:
Wages $22,594
Bank interest $320
Unemployment $250
Alimony (Pre 2018) $2,400
Total gross income $25,564
Claim adjustments:
Student loan interest ($800)
IRA (1,200)
Taxable income $23,564
b) Tanya's taxable income is the amount of income that will be used to calculate how much tax she owes to the government in a given tax year. It is generally described as the adjusted gross income because it is her total income, known as her “gross income,” minus any deductions or exemptions allowed in that tax year.
Answer:
May list assets and liabilities from least liquid to most liquid.
Explanation:
According to International Financial Reporting Standards IFRS the companies may list their available assets and liabilities in descending order of most liquid to least liquid. It enables the users financial statements to easily assess the time assets will take to be converted into cash. Therefore cash is considered as most liquid and is first item to be presented on the Balance sheet of the company under current assets account.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The budgeted sales price is $ 12.00 per stapler, the variable costs are $ 2.00 per stapler, and budgeted fixed costs are $ 10,000. What is the budgeted operating income for 4,600 staplers?
Sales= 12*4,600= 55,200
Variable cost= 2*4,600= (9,200)
Contribution margin= 46,000
Fixed costs= (10,000)
Net operating income= 36,000
