Question 4 Ivanhoe Company reports the following information (in millions) during a recent year: net sales, $10,794.0; net earnings, $359.8; total assets, ending, $4,970.0; and total assets, beginning, $4,025.0. (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1

Answers

Answer 1

Answer:

ROA = 0.08 or 8%

Asset turnover = 2.4

Profit Margin = 0.033 OR 3.3%

Explanation:

All of the above requirements can be calculated as follows according to  their formula

Working

Average asset = (Assets at beginning + assets at end )/ 2

Average assets = (4025 + 4970 )/ 2

Average assets = $4497.5

Requirement A. Return on assets

ROA = Net Income / Average assets

ROA = $359.8 / $4497.5(w)

ROA = 0.08 or 8%

Requirement 2 Asset turnover

Asset turnover = Net Sales / Average assets

Asset turnover = $10,794 / $4497.5

Asset turnover = 2.4

Requirement 3 Profit Margin

Profit margin = Net income / Net sales

Profit margin = $359.8/$10,794

Profit Margin = 0.033 OR 3.3%


Related Questions

According to noted economist Thomas Piketty rev: 10_02_2018_QC_CS-138299 Multiple Choice top executives are entitled to any level of pay they can negotiate with their board of directors. the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm earns higher profits than competitors. all bonuses paid to CEOs should be tied to long-run increases in market share. the income inequality between the salary of company CEOs and the average salary at the company is harmful and unnecessary.

Answers

Answer:

the income inequality between the salary of company CEOs and the average salary at the company is harmful and unnecessary.

Explanation:

Thomas Piketty is classified as an extremely social economist along with Joseph Stiglitz and Paul Krugman. Some confuse them as liberal economists, when they are actually against liberal or neoclassical economies. The three of them are famous for promoting economic fairness and equality. E.g. Piketty opposes extremely high CEO salaries while low level employees earn wages that are dangerously close to the minimum wage. He believes that this type of management practices are unsustainable and damage the economy in the long run.

Personally, I believe that the most important sector of the economy is the middle class and that the larger the middle class, the better.

Marsha notices that her newest employee is eager to point out problem areas and work to resolve them. What characteristic does her new employee show? initiative compromise diplomacy communication

Answers

Answer:

Initiative is the correct answer.

Explanation:

Answer:

The correct answer is initiative

Explanation:

Supply is defined as: A) the maximum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant. B) the maximum amount of a product that sellers are willing and able to provide for sale over a particular time period at various prices, holding all other relevant factors constant. C) the minimum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant. D) the minimum amount of a product that sellers are willing and able to provide for sale over a particular time period at various prices, holding all other relevant factors constant.

Answers

Answer:

B

Explanation:

supply is the amount of goods and services that suppliers are willing to supply over a given range of price holding all other factors constant.

the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

Demand is the maximum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant.

A television commercial for a new car carefully analyzes the car's features and price, relative to other available models. The advertiser is attempting to follow the ________ route to persuasion. direct peripheral central indirect

Answers

Answer:

Central

Explanation:

If a television commercial for a new car carefully analyzes the car's features and price, relative to other available models. The advertiser is attempting to follow the central route to persuasion.

A central route to persuasion can be defined as the thoughtful consideration of an arguments, either content or ideas in a message.

In this scenario, the television company in its commercials used facts and data (car features and price) to actively convince potential customers of the car's worthiness relative to other available models. Therefore, the argument here is strong and is focused on the quality of the car.

Sally, Greg, John, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The four members are located throughout the Midwest, and they are utilizing the phone, e-mail, and collaborative computing to complete this project. This is an example of a _____.

Answers

Answer: Virtual organization

Explanation:

Virtual organization is a firm of organization whereby the members or the employees are geographically apart and not at the same place and therefore communicates by using their e-mails, phones, collaborative computing, or any other means of communication.

The virtual organization is what is being used by Sally, Greg, John, and Amar in the question above.

Posh Pools Inc. was ready to sign an agreement to build a new facility in a foreign nation when it learned that the local currency in that nation had appreciated significantly in the past week. How might this affect the company's decision to build the new facility

Answers

Answer:

D. This will diminish the attractiveness of this country as a manufacturing base for Posh Pools.

Explanation:

Below are the given options of the question

A. There will be a decrease in the dollar cost of products exported from that nation which benefits Posh Pools.

B The company will want to make more foreign direct investment in that country.

C This will decrease the amount of imports brought into the country and make it more attractive for manufacturing

D This will diminish the attractiveness of this country as a manufacturing base for Posh Pools. E

This will transform the country into a low-cost location and make it more desirable for manufacturing.

Since it is mentioned that Posh Pools is ready to sign an agreement for building a new facility but this arise when he learned for the local currency so this impact the attractiveness of the country that would be decline and considered to be a base for manufacturing cost for the company i.e Posh pools

hence, the correct option is d.

Concord Corporation applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $7000. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is 25000?

Answers

Answer:

the amount of direct materials charged to Job 130 is $9,250.

Explanation:

Calculation of direct materials charged to Job 130

Work In Process Inventory             $25,000

Less Manufacturing Overhead       ($7,000)

Less Labor ($7,000 × 100 /80)        ($8,750)

Direct materials charged                  $9,250

An increase in the labor force participation rate A. is consistent with either a rise or a fall in the unemployment rate. B. means there are more discouraged workers. C. implies that the unemployment rate must rise. D. implies that the unemployment rate must fall.

Answers

Answer:

A. is consistent with either a rise or a fall in the unemployment rate

Explanation:

A labour force participation rate is the rate that gives the percentage of the labour force that is employed.

the unemployment rate is the percentage of the labour labour fore that is unemployed.

A rise in the labour force means that more labour is employed. it could either mean that the number of unemployment is reducing or that the number of discouraged workers have increased.

Discouraged workers are workers that have given up looking for job and are not counted as part of the labour force

The Beach Shack Company produced 5,500 cakes that require 3 standard pounds per unit at $3. 00 standard price per pound. The company actually used 16,650 pounds in production. Journalize the entry to record the standard direct materials used in production.

Answers

Answer:

Explanation:

Standard pounds per cake = 3 pounds

Standard unit price = $3

Standard pounds 5500 cakes = 16,500 pounds

Actual pounds per 5500 cakes = 16,650

Variance = (16,650 - 16,500)=150

Cost of actual materials used = actual materials * standard price

=16,650*3 =49,950

Cost of work in progress = Standard materials * standard price = 16,500*3= 49.500

Direct material quantity variance = Quantity variance * 3

150*3 = 450

Journal entry

Debit work in progress = 49,500

Debit material quantity variance = 450

Credit Material = 49,950

_____________which refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well-run organizations compare not only against competitors (where possible) but against best-in-class organizations as well.

Answers

Answer:

Benchmarking.

Explanation:

Benchmarking refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well-run organizations compare not only against competitors (where possible) but against best-in-class organizations as well.

This ultimately implies that, benchmarks are used to measure a firm's products, services, or processes performance in comparison with another business firm that are considered or assumed to be the best in that industry.

Hence, many business firms use benchmarking as a tool to identify and explore opportunities lying within them (internal opportunities).

To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of revolutionary change. managed change. structural change. cultural change. evolutionary change.

Answers

Answer:

evolutionary change.

Explanation:

To achieve compliance with a new industry standard, a company develops a five-year plan in which goals are set for each year with incremental organizational changes focusing on one area of the new standard. This is an example of evolutionary change.

In Business management, leaders are usually saddled with the responsibility of effecting positive changes or innovative solutions, this can be achieved through the application of an evolutionary change.

Evolutionary change are usually slow and irreversible when employed in an organization. For instance, the introduction of digital platform used for taking attendance of employees in an organization.

Unrealized Gain on Available-for-Sale Securities a.is reported on the balance sheet. b.is reported on the income statement in the operating expenses area. c.is not significant enough to be reported. d.is reported on the income statement separately or as a part of Other Income and Expense.

Answers

Answer:

a.is reported on the balance sheet.

Explanation:

Available for sale securities are reported in the balance sheet at fair market value. Any unrealized gains or losses must be included under Other comprehensive income account, which is the last section of the stockholders' equity in the balance sheet.

Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the latest copy of National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This decision by Geraldo is an example of:

Answers

Answer: Impulse buying

Explanation:

Impulse buying could be defined as the act of buying an item in a market unplanned. This happens when you saw something at the market that caught your fancy or that you really needed but didn't remember to budget for it when going to the market for shopping, many times this affects your plan or budget because it's not planned but since it's a need, then they're worth it most times. This an example of what Geraldo did at the mall.

At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

Answers

Answer: $7,740

Explanation:

Given, At December 31, Accounts receivable = $238,000

Allowance for uncollectible accounts = 3% of (accounts receivable)

Allowance for uncollectible accounts = 3% of ($238,000 )

=$(0.03 ×238,000)                [3% = 0.03]

= $ (7140)

= $7,140

Allowance for uncollectible accounts (credit) before any adjustments= $600

The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts +  $600

= $7,140 +  $600

= $7,740

Hence, The amount of the adjustment for uncollectible accounts would be: $7,740.

A barcode scanning device manufacturer tried several times to update its products, but each of the attempts failed, leaving the company weaker and weaker in the process. Now, unless something remarkable happens, the company is facing bankruptcy.
A. Dissolution
B. Inaction
C. Crisis

Answers

Answer:

C. Crisis

Explanation:

Since in the question it is mentioned that the barcode device for scanning is used for several times for updating the products but every attempt failed due to which the company become weaker and weaker

So this situation represents the crisis that declines the company as all the company resources are depleted and only some remarkable could able to save the company

Hence, the correct option is c.

Over time, external monitoring processes should capture information about the external environment in a format that can be referenced across the organization as threats emerge and for historical use.
a. True
b. False

Answers

Answer:

True

when monitoring processes are observed when threats emerge the organization will know how to tackle the threats

Grayson was employed as a field technician servicing building HVAC systems, but because of a downturn in the economy, he was laid off from his job. After unsuccessfully trying to secure another field tech position, Grayson finally took a job as a stock employee at Home Depot. Which of the following best describes Grayson's situation?
A. Grayson is underemployed.
B. Grayson is seasonally unemployed.
C. Grayson has downsized.
D. Grayson has secured job enrichment.

Answers

Answer:

A. Grayson is underemployed.

Explanation:

Underemployed defines that when a person is skilled but not able to utilize their ability and skills for some reason or not get enough money for it.

Therefore according to the given scenario, Grayson was skilled in the filed of technician but unfortunately because of economy Garyson was laid off by the company. After trying a lot to get the job in his field he was unsuccessful then he pick a job of stock employment which indicates that field is not of his use as it is of another field or Grayson is underemployed.

So, from the above description the right answer is A

When Dave, Dan, and Darwin lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. Darwin was a single guy with two other residential properties that he rented out. Dan and Dave had families with college-age children; they owned their homes, and Dan had a wife who worked at a professional job. All three were concerned about the risk involved in owning their own business, particularly the risk of losing personal assets. As their advisor, which of the following forms of business ownership would you recommend?
a) Limited liability company
b) Sole proprietorship
c) General partnership
d) Master limited partnership

Answers

Answer:

a) Limited liability company

Explanation:

Limited liability company is one of the specific types of business structure that is followed in the United States. This structure excludes the partners or the owners to possess the liabilities of the debts and liabilities of the company. This will help the partners limiting the liabilities. An agreement is made which helps in the protection of the liabilities. The owners' personal assets are separated from the asset of the company thereby reducing the debts and liabilities.

In the given excerpt, the best advice to be given to the partners, Dave, Dan, and Darwin as an advisor would be to adopt a limited liability company. This would help them not to keep their personal assets in stake for their business.

Which of the following statements is true about the constant growth model?
A- the constant growth model can be used if a stock's expected constant growth rate is more than its required return
B- The constant growth model can be used if a stock's expected constant growth rateis less than its required return

Answers

Answer: The constant growth model can be used if a stock's expected constant growth rate is less than its required return.

Explanation:

The Constant Growth Model  is a stock valuation method.

It assumes that a company's dividends are increasing at a constant growth rate indefinitely.

Formula: Current price =  (Next dividend the company is to pay) ÷ (required rate of return for the company - expected growth rate in the dividend.

When expected constant < required return, then the constant growth model can be used.

Hence, the statement is true about the constant growth model :

The constant growth model can be used if a stock's expected constant growth rate is less than its required return.

If a stock's predicted constant growth rate is smaller than its needed return, the constant growth model can be utilized.

So, option B is correct.

Define constant growth model.

The constant growth model is used to calculate a stock's inherent value depending on a succession of dividends that increase at a constant pace in the future.

Dividends per share, the growth rate of dividends per share, as well as the rate of return are the three inputs inside the constant growth model.

If a stock's predicted constant growth rate is smaller than its needed return, the constant growth model can be utilized.

So, option B is correct.

Find out more information about growth model here:

https://brainly.com/question/16354435?referrer=searchResults

Flipco signed a 10​-year note payable on January​ 1, 2018​, of $ 800, 000. The note requires annual principal payments each December 31 of $ 80, 000 plus interest at 5​%. The entry to record the annual payment on December​ 31, 2019​, includes:___________
A. a debit to Interest Expense for $ 36, 000.
B. a debit to Interest Expense for $ 40, 000.
C. a credit to Notes Payable for $ 80, 000.
D. a credit to Cash of $ 120, 000.

Answers

Answer:

A. a debit to Interest Expense for $ 36, 000

Explanation:

Based on the information given we were told that Flipco has note payable on January​ 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5​% interest. This means that the Journal entry to record the transaction on December​ 31, 2019​ will includes a Debit to interest expense for $36,000 calculated as :

Interest expense= $800,000-$80,000

Interest expense=( $720,000* 5%* 12/12)

Interest expense =$36,000

Therefore the Journal entry to record the annual payment on December​ 31, 2019​ will includes :

A Debit to interest expense for $36,000

what is a perfect market?​

Answers

A theoretical market in which buyers and sellers are so numerous and well informed that monopoly is absent and market prices cannot be manipulated.
‘in a perfect market, confidence in a brand should coincide exactly with its market share’

Answer:

A Perfect market is

a market where the sellers of a product or service are free to compete fairly, and sellers and buyers have complete information: The internet has a big part to play in the creation of a perfect market. Compare. imperfect market.

Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate is 34%. The firm can issue the following securities to finance the investments:
Bonds: Mortgage bonds can be issued at a pre-tax cost of 9 percent. Debentures can be issued at a pre-tax cost of 10.5 percent.
Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $46. Flotation costs will be $3 per share. The recent common stock dividend was $3.60. Dividends are expected to grow at 6% in the future.
What is the cost of capital using debentures and external equity?
a. 10.96%
b. 13.12%
c. 11.30%
d. 11.69%
e. 11.35%

Answers

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b

c. 11.30

A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:

Answers

Answer:

The marginal product of fifth worker = 50 gallons.

Explanation:

4 workers produce = 450 gallons of milk

5 workers produce = 500 gallons of milk

The marginal product of fifth worker can be calculated by subtracting the total product when there are 4 workers from the total product when there are 5 workers.

The marginal product of fifth worker = 500 – 450 = 50 gallons.

During World War II, the price of rubber went up considerably. The rise in price stimulated research for alternatives. For example, today's automobile tires are almost entirely made from synthetic materials. As a result, the increase in the price of rubber eventually led to a very large drop in quantity demanded. This is an example of how the price elasticity of demand:

Answers

Answer:

rises the greater the time frame considered.

Explanation:

Since in the question, it is given that the rubber price increased up and they are made up of synthetic materials. Due to an increase in the price of the rubber, there is a large decline in quantity demanded

So this represents that if the price elasticity of demand increased the more the time period is relevant

In Latuna, it takes 10 resources to produce 1 ton of coffee and 13.5 resources to produce 1 ton of wheat. In South Narnia, it takes 40 resources to produce 1 ton of coffee and 12 resources to produce 1 ton of wheat. Latuna has a comparative advantage over South Narnia in:__________.
A. wheat
B. neither coffee nor wheat.
C. both coffee and wheat.
D. coffee
E. both coffee and wheat if combined.

Answers

Answer:

A

Explanation:

a person has comparative advantage in production if he / she produces at a lower opportunity cost when compared to other countries.

for latuna,

opportunity cost of producing 1 ton of coffee = 13.5 / 10 = 1.35

opportunity cost of producing 1 ton of wheat = 10 / 13.5 = 0.741

for South Narnia,

opportunity cost of producing 1 ton of coffee = 12 / 40 =0.3

opportunity cost of producing 1 ton of wheat = 3.3

south narnia has a comparative advantage in the production of coffee and latuna has a comparative advantage in the production of wheat

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the UK food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance. This scandal results from ____________ and __________.

Answers

Answer:

Poor governance and Control

Explanation: The overstatement of profit made by TESCO, a renowned grocery chain in the U. K could largely be traced to the poor internal structure governing the setup which demonstrated high level of ineptitude in the control and anchoring the of the firm's activities. In a bid to increase profit and market standing, TESCO embarked on an aggressive financial strategy whereby income was doctored and suppliers tricked into making payment in other to up the company's earning figure. This act explains how disjointed the upholding structure within the company was at the time.

The common stock of Dayton Dry Goods has historically had a low dividend yield that is expected to continue. As a result, the majority of its shareholders are individuals who prefer capital gains over cash dividends for tax reasons. The fact that most of these shareholders have similar characteristics is referred to by which one of the following terms?
A. Market reaction effect
B. Clientele effect
C. Distribution effect
D. Investor effect Information content effect

Answers

Answer: clientele effect

Explanation:

When stock prices moves up according to the investors goals and demands it is known as the Clientele effect. They are affected through tax, or other policies and this would affect the shares casuing the stock price to move either up or down.

BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost

Answers

Complete Question:

BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?

a. 50%

b. 75%

c. 30%

d. 100%

Answer:

a. 50%

Explanation:

In this scenario, BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is 50% of total distribution cost.

In supply chain management, the total distribution cost can be defined as the overall expenses incurred by a manufacturer in the process of delivering finished goods and services from the production stage to the final consumer. The total distribution cost can either be direct or indirect expenses incurred on insurance, handling, storage, shipping, packing and logistics.

Generally, the total amount spent on the movement of goods and services from one location to another, usually accounts for half (50%) of the overall expenses incurred in total distribution cost.

Draw a demand curve for lattes and label the curve. Use any prices and quantities you​ wish, but make your demand curve obey the law of demand. The law of demand states that​ ______, the​ ______ the price of a​ good, the smaller is the quantity demanded.

Answers

Answer:

please check the attached image for the diagram of the demand curve

other things remaining the same

higher

Explanation:

the law of demand states that other things remaining the same, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

the demand curve is downward sloping in accordance to the law of demand.

Answer:

The law of demand states that​ other things remaining the​ same, the​ higher the price of a​ good, the smaller is the quantity​ demanded; and the​ lower the price of a​ good, the greater is the quantity demanded.

Explanation:

The law of demand states that other things remaining the​ same, the higher the price of a​ good, the smaller the quantity demanded. The demand curve slopes downward.

Other things remaining the​ same, if the price of a good​ rises, the quantity demanded of that good​ decreases; and if the price of a good​ falls, the quantity demanded of that good increases.

Net income is $1,000,000 for the year, EBT is $2,500,000, retained earnings in January were $5,000,000, common stock dividends paid for the year are $300,000, and common shares outstanding are 1,000,000. What are end-of-year retained earnings? Group of answer choices

Answers

Answer:

$5,700,000

Explanation:

The net income for the year is $1,000,000

The EBT is $2,500,000

The retained earnings in January were $5,000,000

The amount of common stock dividend that was paid for the year is $300,000

The common shares that are outstanding is 1,000,000

Therefore, the end-of-year retained earnings can be calculated as follows

= Net income+Retained earning-stock paid

= $1,000,000+$5,000,000-$300,000

= $6,000,000-$300,000

= $5,700,000

Hence the end-of-year retained earnings is $5,700,000

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