A large international company has two business units. Invested assets and condensed income statement data for each business unit for the past year are as follows: Compute the following for Business Unit 1: a) Operating Income Using the Dupont Formula: b) Profit Margin % (round % to 1 decimal) c) Investment Turnover (round to 2 decimals) d) Return on Investment (round 1 decimal) Compute the following for Business Unit 2: 2A) Operating Income Using the Dupont Formula: 2B) Profit Margin (round % to 1 decimal) 2C) Investment Turnover (round to 2 decimals) 2D) Return on Investment (round 1 decimal)
Answers
Answer:
1. Compute the following for Business Unit 1:
a) Operating Income = $117,500
b) Profit Margin = 20.7%
c) Investment Turnover = 0.86
d) Return on Investment = 0.2
2. Compute the following for Business Unit 2:
a) Operating Income = $69,750
b) Profit Margin = 12.2%
c) Investment Turnover = 1.18
d) Return on Investment = 0.1
Explanation:
1. Compute the following for Business Unit 1:
a) Operating Income
Operating Income = Revenue – Operating expenses = $280,000 – $162,500 = $117,500
Using the Dupont Formula:
b) Profit Margin % (round % to 1 decimal)
Net income = Operating income – Services department charges = $117,500 - $59,500 = $58,000
Profit Margin = Net income / Revenue = ($58,000 / $280,000) * 100 = 20.7%
c) Investment Turnover (round to 2 decimals)
Investment Turnover = Revenue / Invested Assets = $280,000 / $325,000 = 0.86
d) Return on Investment (round 1 decimal)
Return on Investment = Net income / Invested Assets = $58,000 / $325,000 = 0.1785 = 0.2
2. Compute the following for Business Unit 2:
a) Operating Income
Operating Income = Revenue – Operating expenses = $222,500 – $152,750 = $69,750
Using the Dupont Formula:
b) Profit Margin % (round % to 1 decimal)
Net income = Operating income – Services department charges = $69,750 - $42,625 = $27,125
Profit Margin = Net income / Revenue = ($27,125 / $222,500) * 100 = 12.2%
c) Investment Turnover (round to 2 decimals)
Investment Turnover = Revenue / Invested Assets = $222,500 / $189,000 = 1.18
d) Return on Investment (round 1 decimal)
Return on Investment = Net income / Invested Assets = $27,125 / $189,000 = 0.1435 = 0.1
Related Questions
Lolade was an employee of N&K Nigeria Ltd, while on duty at his
employer s workshop one day, a Splinter of steel which escaped during an operation by a fellow worker, Bolade, flew into Lolade' s eyes and blinded it. Although N&K Ltd provided goggles for each worker but Lolade seldom use his goggles. Lolade is contemplating a Legal Action against his employers. Advise
the parties?
Answers
Lolade, an employee of N&K Nigeria Ltd is contemplating legal action against his employers for an accident that occurred during work. Lolade was at his employer's workshop when a splinter of steel flew into his eyes, causing him to become blind.
Although N&K Ltd provided goggles for each worker, Lolade seldom used his goggles. In order to advise the parties involved in this case, the following points have to be considered:
Legal action against the employer: The first issue is whether Lolade can bring legal action against N&K Nigeria Ltd. It is important to note that under Nigerian law, employers have a duty of care to their employees. This duty requires the employer to provide a safe working environment for their employees. If an employer fails to provide a safe working environment and an employee is injured as a result, the employee may be able to bring legal action against the employer.
In this case, Lolade could bring a claim against N&K Nigeria Ltd for negligence in failing to provide a safe working environment. However, there is also a principle of contributory negligence. This means that if an employee contributes to their own injury, they may not be able to recover all of their damages. In this case, Lolade's failure to use his goggles could be considered a contributory factor in his injury. N&K Nigeria Ltd could argue that Lolade contributed to his own injury by failing to use his goggles.
Possible defenses by the employer: N&K Nigeria Ltd could argue that they provided goggles for each worker and that it was Lolade's responsibility to use them. They could also argue that the injury was caused by Bolade's actions and that they are not responsible for the actions of another employee. However, it is important to note that an employer is responsible for the actions of their employees in the course of their employment.
In conclusion, Lolade could bring legal action against N&K Nigeria Ltd for negligence in failing to provide a safe working environment. However, the issue of contributory negligence would have to be considered. N&K Nigeria Ltd could argue that Lolade contributed to his own injury by failing to use his goggles.
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What is one step in identifying the main idea of a text?
Group of answer choices
Determine what the text says about the topic
Go to the glossary and find words related to the topic
Look for the lesson the author wants the reader to learn
Use context clues to understand the meaning of new words
Answers
Answer:
i believe the first option " determine what the text says about the topic" might be the correct answer
Answer: the answer is c
Explanation:
I am way too late but i took the same test
Second Company's preferred stock is 8%, cumulative. A provision of the stock agreement specifies that the stock must be redeemed at face value in five years. Required It appears that the loan payable of First Company and the preferred stock of Second Company are very similar. What are the differences between the two securities
Answers
Answer and Explanation:
In a normally way, the loan payable for the first company and the second company preferred stock displayed very same to each other but still has some differences that are as follows:
a. The loan payable is the liability where the company is bound to pay together with the interest within the prescribed time period
b. The dividend is an expense that could arise at the time when the dividend is declared
c. There is no liability when the dividend until declared but in the case of the interest, the liability arise as soon when the loan is given
d. The loan payable should be the right that against the assets but for the same there is no right provided to the shareholders until the company declared the dividend
What term describes the execution of business transactions in a paperless environment, primarily through the Internet
Answers
Answer:
Paperless transaction
2. 2. One can apply.
life
a. Leadership
b. Management
c. Job
O d. Strategic Thinking
to arrive at decisions that can be related to your work or personal
Answers
One can apply to Management to arrive at decisions that can be related to your work or personal.
Whether an organisation is a for-profit corporation, a government agency, or a nonprofit, management is the administration of that entity. It is the science of managing a company's resources.
Businesses use management to plan their operations, processes, and personnel in order to achieve their objectives. The main objective of management is to establish an atmosphere that encourages productive and efficient work among personnel.
The administration and coordination of tasks to accomplish a goal is management. Setting the organization's strategy and organising staff efforts to achieve these goals through the application of resources available are examples of such administration activities.
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FILL IN THE BLANK Customer acquisition ___ (CAC) is a metric that is used by e-commerce companies and other sales related organizations to assess the costs associated with convincing a potential customer to purchase a service or product.
Answers
E-commerce businesses and other sales-related organizations use the concept of customer acquisition costs to measure the expenses involved in persuading a potential consumer to buy a service or good.
What do a client and an example mean?A client is sometimes considered to be someone who purchases a good, business, or product. Customers are more clearly defined as individuals or organizations that are presently purchasing, have recently purchased, or may be considering purchasing a services or goods from another person or business.
What does a good client mean?Excellent Clients Aspire to Self-Sufficiency To suit their demands, they must be able to customize and alter it instantly. These are the folks who find a great deal of joy in figuring out the solution on their own and view asking for assistance from others as a sign of personal failure.
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Percentage of sales budgeting can also be called _____.
arbitrary budgeting
objective and task budgeting
rule of thumb budgeting
competitive budgeting
Answers
Answer:
promotional budget is set as a percentage of current or anticipated sales
Typical percent of sales is 2%-5%
Explanation:
so I would have to say arbitrary budgetingDetermine the total expenses based on the following data
assets 72,000
owner's equity 70,000
revenues 20,000
liabilities 16,000
Answers
From the given data, it appears that the expenses result in a negative value of $-14,000. This indicates a deficit, which suggests that the company's liabilities and owner's equity exceed its assets.
To determine the total expenses based on the given data, we need to use the accounting equation: Assets = Liabilities + Owner's Equity. In this case, we are given the values of assets, owner's equity, and liabilities.
Assets = $72,000
Owner's Equity = $70,000
Liabilities = $16,000
Using the accounting equation, we can calculate the total expenses by rearranging the equation:
Expenses = Assets - Liabilities - Owner's Equity
Expenses = $72,000 - $16,000 - $70,000
Expenses = $-14,000
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des
11. Ashleigh has a pet boa constrictor named
Pauline. She keeps it in the most expensive,
escape-proof cage she can find. Regardless,
the boa escapes and kills the neighbor's famed
show cat which was valued at more than $5,000.
Will Ashleigh be liable?
at
ely
Will Ashleigh be liable
Answers
Answer:
yes
Explanation:
it was her boa constrictor so therefore she is held responsible
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as
Answers
Answer:
Period costs
Explanation:
Period costs are Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process. These cost are not related directly to the production process. These costs cannot be capitalized on the company's balance sheet. They are expensed in the period in which they were incurred and are included in the financial statement during their assigned accounting period.
What are The two segments of the organization's environment
Answers
Develop a managerial report (1,000-1,250 words) summarizing your analysis of the OEI service capabilities. Make recommendations regarding the number of technicians to be used when OEI reaches 20 and then 30 customers, and justify your response. Include a discussion of the following issues in your report:
What is the arrival rate for each customer?
What is the service rate in terms of the number of customers per hour? (Remember that the average travel time of 1 hour is counted as service time because the time that the service technician is busy handling a service call includes the travel time in addition to the time required to complete the repair.)
Waiting line models generally assume that the arriving customers are in the same location as the service facility. Consider how OEI is different in this regard, given that a service technician travels an average of 1 hour to reach each customer. How should the travel time and the waiting time predicted by the waiting line model be combined to determine the total customer waiting time? Explain.
OEI is satisfied that one service technician can handle the 10 existing customers. Use a waiting line model to determine the following information: (a) probability that no customers are in the system, (b) average number of customers in the waiting line, (c) average number of customers in the system, (d) average time a customer waits until the service technician arrives, (e) average time a customer waits until the machine is back in operation, (f) probability that a customer will have to wait more than one hour for the service technician to arrive, and (g) the total cost per hour for the service operation.
Do you agree with OEI management that one technician can meet the average 3-hour service call guarantee? Why or why not?
What is your recommendation for the number of service technicians to hire when OEI expands to 20 customers? Use the information that you developed in Question 4 (above) to justify your answer.
What is your recommendation for the number of service technicians to hire when OEI expands to 30 customers? Use the information that you developed in Question 4 (above) to justify your answer.
What are the annual savings of your recommendation in Question 6 (above) compared to the planning committee's proposal that 30 customers will require three service technicians? (Assume 250 days of operation per year.) How was this determination reached?
Answers
The purpose of this research is to examine the service proficiency of OEI and suggest suitable staffing levels for accommodating a growing clientele of 20 and 30.
1. Arrival Rate for Each Customer: 1.25 customers per hour.
2. Service Rate in Terms of Customers per Hour: 1/3 customers per hour.
3. Travel Time and Waiting Time: The waiting time starts from the moment the customer contacts OEI until the machine is back in operation, including both travel and repair time.
What is the managerial report1. Arrival Rate for Each Customer: 1.25 customers per hour.
Based on historical data, the arrival rate for each customer is calculated by dividing the total number of customers by the total time. let us say that OEI receives an average of 10 customers per day, and the service operates for 8 hours a day. So, the arrival rate per customer is:10 customers / 8 hours
= 1.25 customers per hour.
2. Service Rate in Terms of Customers per Hour: 1/3 customers per hour.
The service rate takes into account the time required to complete a repair, including travel time. OEI estimates that each service call takes approximately 1 hour for travel time and 2 hours for the actual repair. So, the service rate is:1 customer / 3 hours
= 1/3 customers per hour.
3. Travel Time and Waiting Time:
OEI is different from traditional waiting line models since service technicians need to travel an average of 1 hour to reach each customer. In this case, the travel time and waiting time predicted by the waiting line model should be combined to determine the total customer waiting time.Learn more about managerial report from
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.
7. A
relationship would include your co-workers and friends.
O A. mutually exclusive
O B. romantic
O C. companionate
OD. sporting
Answers
Your friends and coworkers would be considered in a mutually exclusive relationship.
What does mutually exclusive mean?Two events cannot occur simultaneously because they are mutually exclusive (also known as disjoint). If (A∩B) = 0, two occurrences A and B are mutually exclusive. A statistical term used to describe occurrences that cannot happen concurrently is "mutually exclusive." It is employed to describe a scenario in which the appearance of one occurrence is unaffected or unrelated to that of another. For instance, it is impossible to simultaneously roll a five and a three on the same die. If an occurrence of any of the events E1, E2,..., En indicates that none of the other n 1 events will occur, therefore the events are referred to as mutually exclusive in probability theory. Therefore, it is impossible for two occurrences that are mutually incompatible to occur simultaneously. A B = is the formal formula, which states that the intersection of any two of them is empty (the null event).
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an example of an instrinsic reward is
Answers
Explanation:
An intrinsic reward is an intangible award of recognition, a sense of achievement, or a conscious satisfaction. For example, it is the knowledge that you did something right, or you helped someone and made their day better.
A loan for $2000 with a simple annual interest rate of 19% was made on November 11 and was due on January 16 find the ordinary interest
Answers
When a loan for $2000 with a simple annual interest rate of 19% was made on November 11 and was due on January 16, then the rate of ordinary interest will be 3.3%.
What is the significance of simple interest?In the situation given above, the simple interest for 1 day will be,
Daily simple interest = Annual Rate/365
Daily simple interest = 19/365 = 0.05%
The tenure of the loan was 66 days between November 11 and January 16, so the charged interest will be,
Interest for 66 days= 66 x 0.05 = 3.3%
Now the actual amount of interest to be charged over the loan will be,
Actual interest charged = 2000 x 3.3% = $66.
Therefore, the significance regarding simple interest has been aforementioned.
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The negative impact of HIV/AIDS in the workplace
Answers
HIV/AIDS has a significant negative impact on the workplace in several ways. Firstly, the illness can lead to absenteeism and decreased productivity as employees take time off work to receive treatment and care for their condition.
This can be particularly damaging in industries where staffing levels are critical, such as healthcare or emergency services. Additionally, the stigma associated with HIV/AIDS can result in discrimination against affected employees, which can lead to further absenteeism and decreased productivity. This discrimination can also result in the loss of skilled employees who are forced to leave their jobs due to discrimination.
Furthermore, the cost of providing medical and disability benefits to affected employees can be high, leading to financial strain on companies. This can also lead to increased healthcare costs and insurance premiums for other employees. Finally, the negative impact of HIV/AIDS on workplace morale and relationships cannot be overlooked.
Fear, misunderstanding, and discrimination can lead to a toxic workplace environment, which can impact the mental health and well-being of all employees. It is important for employers to prioritize education, prevention, and support for affected employees in order to mitigate the negative impact of HIV/AIDS in the workplace.
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On August 10, a credit card account had a balance of $325. A purchase of $56 was made on August 15, and $157 was charged on August 27. A payment of $79 was made on August 15. The interest on the average daily balance is 1.35% per month. Find the finance charge on the September 10 bill. (Round your answer to two decimal places.)
Answers
Answer:
The finance charge on the September 10 bill is $5.08.
Explanation:
Note: See the attached excel file for the calculation of the sum of total amount owed each day (in bold red color).
From the attached excel file, we have:
Sum of total amount owed each day = $11,675
Average daily balance = Sum of total amount owed each day / Number of days in the billing period = $11,675 / 31 = $376.61
Finance charge = Average daily balance * Interest rate per month = $376.61 * 1.35% = $5.08
Therefore, the finance charge on the September 10 bill is $5.08.
A family spends $56,000 a year for living
expenses. If prices increase 5 percent a
year for the next four years, what amount
will the family need for their annual living
expenses after four years?
Answers
If a family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.
Annual living expensesUsing this formula
Amount=Amount spent× (1+ rate)^ Number of years
Let plug in the formula
Amount=$56,000× (1+0.05)^4
Amount=$56,000× (1.05)^4
Amount=$68,068.35
Therefore If a family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.
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in 2020, Mathis Co. at the first year of operations, has financial income of $1,200,000. It has an litigation expense of $3,000,000, and installment sales of $2,4000,000. The estimated litigation expense of $3,000,000 will be deductible in 2022 when it is expected to be paid. The installment sales will be realized in the amount of $1,200,000 in each of the next two years. The income tax rate is 20% for all years. what is tax payable for 2020
Answers
Answer:
Mathis Co.
The Tax payable for 2020 is:
= $1,320,000
Explanation:
a) Data and Calculations:
2020 Financial income = $1,200,000
add Litigation expense 3,000,000
add installment sales 2,400,000
Adjusted taxable income $6,600,000
Income tax rate = 20%
Tax payable for 2020 = $1,320,000
b) The litigation expense was deducted from the financial income. This is added back to the income. Installment sales were not included in the revenue for the financial income of 2020. This is also added to the financial income. The net result is the figure for taxable income. This forms the basis for the application of the income tax rate of 20%.
When lenders are deciding whether to give someone a loan, they generally require the person applying for the loan to:
A.
pass a written test to show his or her mastery of financial concepts.
B.
prove that he or she makes enough money to pay off the loan.
C.
shut down all other bank accounts at different financial institutions.
D.
show that he or she has a college degree from a major university.
Answers
Answer:
for a fact the answer has to be B.
The checklist while granting loans are credibility, earning history, and ability to repay.
What should be checked before making a loan?Lenders Consider 7 Factors when reviewing your loan application:
Your creditYour earnings and employment historyYour debt-to-income ratioThe value of your collateralThe size of your down paymentYour liquid assetsThe term of your loan.When applying for a loan, one must demonstrate that he or she earns enough money to repay the loan.
Therefore option B aptly describes the checklist while granting loans.
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Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $10800. Becker Company reports $653000 of net income for Year2. Becker has an unrealized gain of $12000 during Year2. The gain qualifies as OCI (Other comprehensive income). 1. What will Becker report as Accumulated Other Comprehensive Income on the Year2 balance sheet
Answers
Answer:
Becker Company
The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
= $22,800.
Explanation:
a) Data and Calculations:
Year 2 Beginning balance:
Accumulated other comprehensive income (AOCI) = $10,800 credit
Year 2 reported net income = $653,000
Unrealized gain during Year 2 = $12,000
The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
Beginning balance $10,800
Unrealized gain 12,000
AOCI for Year 2 = $22,800
b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions. These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.
Do you disagree that “leaders are born, not made”?
Answers
Answer: I disagree
Explanation: everyone was born but not everyone is a leader. anyone can be born to do something but it is up to the person who they will become
Problem 8, MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product’s economic life of 5 years.
Instructions
Prepare the journal entry to record software cost amortization for the first year. Show all computations.
Answers
Journal Entry:
Date: [First year-end date]
The amortization expense for the first year is $120,000.
Debit: Amortization Expense - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Credit: Accumulated Amortization - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Explanation:To record the software cost amortization for the first year, we need to allocate a portion of the capitalized software costs as an expense. Since the software has an estimated economic life of 5 years, we divide the total software cost ($600,000) by 5 to determine the annual amortization expense. In this case, the amortization expense for the first year is $120,000. We debit the Amortization Expense - Software Cost account to recognize the expense and credit the Accumulated Amortization - Software Cost account to accumulate the amortization over time.For more such questions on Journal Entry
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why is brainy a good place if with most the questions if you can simplify the question and get all of them for free
Answers
Answer:
Looll.. well ig some ppl like to wait for their answer then instead of searching or going back through notes.. have a great day :3
Explanation:
Answer: Brainly works better
Explanation:
Activities would you perform as an entrepreneur?
Answers
Answer:
no. because why it make since to person as an entrepreneur
How do I file this assignment out?
Answers
These steps can be pursued to finish the task: Commence by generating a fresh record or unveiling a void sheet on your preferred word processing application.
What is the filing?Also, Craft a header for the file, like "Task: Enhancing Market Share Strategy. "
Start composing your reply to the task prompt. You may organize your reply in distinct sections or paragraphs to cover every point effectively. As a case in point, commencing with an opening that succinctly elaborates on the assignment's prompt and grants a synopsis of the idea of enhancing market share could be a prudent approach.
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Which of the following do you prefer for business/ economic transactions.
1. Cash Vs Debit Card
2. Justify your choice
Answers
I personally prefer to use cash for business and economic transactions. I find that it provides a sense of security as I am able to physically see and hold the money, which makes it easier to keep track of my spending. Cash also allows me to have more control over my finances and helps me stick to a budget, as I can physically see how much money I have left. Additionally, using cash avoids the potential risks of identity theft or fraud that come with using electronic methods of payment such as debit cards. Overall, for me, cash provides a more reliable and secure way of conducting business and economic transactions.
To save time, try a test solution after your first interview
Answers
EXPLAIN HOW IMPORTANT MOTIVATION IN AN ORGANIZATION
Answers
Answer:
Motivation is a human factor in management. Motivation represents the willingness of an individual to put his efforts in a particular direction so as to achieve his goals. Motivation is what makes people perform or do the things
purchased goods of rs 40000 journal entries
Answers
The journal entry for Rs. 40, 000 purchases would include a debit to purchases and credit to cash or accounts payable.
How to enter the journal ?The Purchases account is debited because the business has acquired goods, which is an asset. The Accounts Payable account is credited because the business owes money to the supplier for the goods.
Date Account title Debit Credit
XX -XXXX Purchases Rs. 40, 000
Accounts payable Rs. 40, 000
This journal entry will increase the balance of the Purchases account and the Accounts Payable account. The Purchases account will be used to track the cost of goods sold, and the Accounts Payable account will be used to track the amount of money owed to suppliers.
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