BUSINESS COLLEGE

E9-14 Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analysts Perspective [LO 9-7] The following data were included in a recent Papaya Inc. annual report (in millions): 2013 2014 2015 2016 Net revenue $ 82,225 $ 120,119 $ 163,500 $ 167,910 Net property, plant, and equipment 4,960 9,380 15,620 17,000 Required: Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Answers

Answer 1

Answer:

Answer:

2014 Fixed Assets TO: 11.47

2015 Fixed Assets TO: 13.08

2106 Fixed Assets TO: 10.29

Explanation:

Fixed turnover ratio:

$(Profit)/(Avg FA) = $FA Turnover$

where:

$$$Average FA =(Beginning FA + Ending FA)/2$

2014 DATA

Profit: 120,119

Beginning 4960

Ending 9380

Average 7170

$(120,119)/(7170) = $FA Turnover$

Inventory TO 16.75299861

2015 data

Profit: 163,500

Beginning 9380

Ending 15,620

$(163,500)/(12,500) = $FA Turnover$

FA TO 13.08

2016

Profit: 167,910

Beginning 15,620

Ending 17,000

$(167,910)/(16,310) = $Inventory Turnover$

Inventory TO 10.2949111

Related Questions

Boilermaker House Painting Company incurs the following transactions for September. 1. Paint houses in the current month for $15,000 on account. Assets increase and stockholders' equity increases. 2. Purchase painting equipment for $16,000 cash. One asset increases and another asset decreases.3. Purchase office supplies on account for $2,500. Assets increase and liabilities increase.4. Pay employee salaries of $3,200 for the current month. One asset increases and another asset decreases.5. Purchase advertising to appear in the current month, $1,200. Assets increase and stockholders' equity increases.6. Pay office rent of $4,400 for the current month. Assets decrease and stockholders' equity decreases.7. Receive $10,000 from customers in (1) above. One asset increases and another asset decreases.8. Receive cash of $5,000 in advance from a customer who plans to have his house painted in the following month. Assets increase and liabilities increase.For each transaction, describe the dual effect on the accounting equation. For example, for the first transaction, (1) assets increase and (2) stockholders' equity increases.
Label each of the following scenarios with the correct combination of price change and quantity change. In some scenarios, it may not be possible from the information given to determine the direction of a particular price change or a particular quantity change. We will symbolize those cases as, respectively, "P?" and "Q?". a. On a hot day, both demand for lemonade and supply of lemonade increase. b. On a cold day, both demand for ice cream and the supply of ice cream decrease. c. When Hawaii's Mt. Kilauea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases. d. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster.
Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price? Select one: a. Consumers, who purchase more units of the product than they did before the price support program was implemented b. Taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place c. The government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues
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Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $113 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 5% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.1. How much warranty expense does the company report in 2018 for this copier? 2. How much is the estimated warranty liability for this copier as of December 31, 2018? 3. How much warranty expense does the company report in 2019 for this copier? 4. How much is the estimated warranty liability for this copier as of December 31, 2019? 5. Prepare journal entries to record (a) the copier's sale; (b) the adjustment on December 31, 2018, to recognize the warranty expense; and (c) the repairs that occur in November 2019.

Answers

Answer:

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Harwinton, Inc. anticipates sales of 56,000 units, 54,000 units, 57,000 units and 56,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?

Answers

Answer:

The correct answer is 56,500 units.

Explanation:

According to the scenario, the computation of the given data are as follows:

Sales for September = 57,000 units

As Beginning and ending inventory should be 50% of following month sales

So, Beginning inventory = 57,000 × 50% = 28,500

And Ending inventory = 56,000 × 50% = 28,000

So, we can calculate the units to be produce in September by using following formula:

Units produce in September = Sales for September + Ending inventory - Beginning inventory

By putting the value, we get

= 57,000 + 28,000 - 28,500

= 56,500 units

Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.75 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .80, a cost of equity of 11.5 percent, and an aftertax cost of debt of 4.3 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 3 percent to the cost of capital for such risky projects.

Answers

Answer:

The question is: "What is the maximum initial cost the company would be willing to pay for the project?"

The maximum initial investment cost the company would be willing to pay for the project is $18,817,204.

Explanation:

We have D/E = 0.8 => D/ (D+E) = 4/9; E/(D+E) = 5/9.

WACC of the firm = 4/9 x 4.3% + 5/9 x 11.5% = 8.3%.

Adjustment for cost capital due to higher risk of the project: 8.3% + 3% = 11.3%.

=> Maximum initial investment cost is equal to the net present value of the cash saving the project brings about discounting at project's cost of capital, calculated as:

1,750,000/ (11.3% - 2%) = $18,817,204.

Thus, the Maximum initial investment cost is $18,817,204.

Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods, CIF port of Amsterdam. The seller refused to ship. The buyer brings an action for damages. In the US, a court would probably rule

Answers

Answer: b.

damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment

Explanation: Because the contract has already been initiated and was defaulted by the seller. The Judge would ask him to pay for damages. And this will be measured by subtracting the contract price of the goods from the market price. I.e the price the goods would gave been sold and the price the seller accepted to sell to the buyer according to the contract they signed.

Dawson Corporation has the following information available for 2014: (in millions) Issued common stock $45 Retired common stock $65 Paid dividends $75 Net income $130 Beginning Common Stock balance $625 Beginning Retained Earnings balance $475 Based on this information, what is Dawson's Retained Earnings balance at the end of the year? a. $680 b. $530 c. $420 d. $605

Answers

Answer:

b. $530

Explanation:

As provided retained earnings opening balance = $475

Add net income for the year = $130

Balance = $605

Further dividend is paid, which reduces the balance of retained earnings = $75

Balance after paying dividends = $605 - $75 = $530

All the other information provided in question relates to common stock and has no relevance on retained earnings balance.

Therefore, balance of retained earnings at the end of period = $530

A report found that the real entry-level wage for college graduates declined by 6 percent between 2003 and 2010.2010 Nominal Entry-Level Wage 2010 CPI 2003 CPI
$13.50 170.2 142.5
Enter your responses rounded to two decimal places.
Based on the information above:
a. The 2010 real entry-level wage is $.
b. The 2003 real entry-level wage is $.
c. The 2003 nominal entry-level wage is $.

Answers

The 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.

How to calculate the entry-level wages?

Using the information given above, the real entry-level wage for the year 2010 will be calculated by using the formula given below as,

$\rm Entry\ Level\ Wage\ 2010= (Nominal\ Entry\ Level\ Wage)/(CPI\ 2010) x\ 100\n\n\rm Entry\ Level\ Wage\ 2010= (\$13.50)/(\$170.2)x\ 100\n\n\rm Entry\ Level\ Wage\ 2010= \$7.93$

Now, for the year 2003,

$\rm Real\ Entry\ Level\ Wage\ 2003= 2010\ Real\ Wage +Decline(\%)\n\n\rm Real\ Entry\ Level\ Wage\ 2003= 7.93 + 6\%\n\n\rm Real\ Entry\ Level\ Wage\ 2003= \$8.40$

Now calculating the nominal entry-level wages for the year 2003,

$\rm Nominal\ Entry\ Level\ Wage\ 2003= Real\ Entry\ Level\ Wage\ x (2003\ CPI)/(100)\n\n\rm Nominal\ Entry\ Level\ Wage\ 2003=8.43\ x\ (142.5)/(100)\n\n\rm Nominal\ Entry\ Level\ Wage\ 2003= \$12.01$

Hence, the 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.

Learn more about entry level wage rates here:

brainly.com/question/5066760

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