Lloyd Inc. had sales of $200,000, a net income of //415,000, and the following balance sheet: Cash $10,000 Accounts Payable $30,000
Receivables 50,000 Notes Payable To Bank 20,000
Inventories 150,000 Total Current Liabilities $50,000
Total Current Assets $210,000 Long-Term Debt 50,000
Net Fixed Assets 90,000 Common Equity 200,000
Total Assets $300,000 Total Liabilities And Equity $300,000
The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? What will be the firm’s new quick ratio?
Answers
Answer:
The firm's new quick ratio is 2.9
Explanation:
The current ratio is calculated as
Current ratio = Current assets / Current liabilities
2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)
2.5 = ($10,000 + $50,000 + Inventories) / $50,000
$60,000 + inventories = $125,000
Inventories = $65,000
Therefore, $85,000 worth of inventories were sold off.
If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.
Hence, the common equity amounts to $115,000
Calculating the ROE before the inventory is sold off:
ROE = Net income / Stockholder's equity
= $15,000 / $200,000
= 0.075 or 7.5%
Calculating the ROE after selling off the inventory:
ROE = $15,000 / $115,000
= 0.13 or 13%
The firm's new quick ratio is
Quick ratio = (Current assets - Inventories) / Current liabilities
= ($210,000 - $65,000) / $50,000
= 2.9
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Search engine optimization
B.
Search engine marketing
C.
A clickthrough rate
D.
Geotargeting
E.
Content farming
Answers
Answer:
A
Explanation:
b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)
c. Calculate raw material productivity figures (units/$ where $1
Answers
Answer:
Part A:
Labur Productivity:
For US=5.14, LDC=1.35
Capital Productivity:
For US=1.72 LDC=4.31
Part B:(Multi factor productivity)
For US=1.29 LDC=1.03
Part C: (Raw material productivity)
For US=4.90 LDC=10.02
Explanation:
Part A:
Labur Productivity:
For US:
For LDC:
Capital Productivity:
For US:
For LDC:
Part B:
For US:
For LDC:
Part C:
For US:
ForLDC:
Converting Raw material FC into $ (1$=10FC)
Raw Material =19550/10=$1955
Answers
Melissa's capital gain tax from the sale of her Bitcoin in 2021 for a long-term capital gain of $200,000, and as Head of Household is $30,000.
Data and Calculations:
Long-term capital gain = $200,000
Total taxable income = $450,000
Assumed long-term capital tax rate = 15%
Thus, the tax on Melissa's capital gain tax from the sale of her Bitcoin in 2021 for a long-term capital gain of $200,000, and as Head of Household is $30,000 ($200,000 x 15%).
Learn more about long-term capital gain here: brainly.com/question/25117603
Answer:
hi so im thinking its $250,000 dollors probaly
Explanation:
Answers
Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1)
Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000
= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000
Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000
= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.
Answers
Answer:
Ending WIP= $17,000
Explanation:
Giving the following information:
The cost of the beginning work in process inventory is $70,000
The costs of goods manufactured is $935,000
Direct materials cost is $339,000
Direct labor cost is $219,000
Allocated overhead cost is $324,000
Using the following formula, we can calculate the ending work in process:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
935,000= 70,000 + 339,000 + 219,000 + 324,000 - Ending WIP
Ending WIP= $17,000
b. How much of the $30,000 distributed to Clare is included in her gross income? $ is included in her gross income.
c. The distributions which are composed of trust accounting income that is required to be distributed currently come under .
Answers
Answer:
a)
Results for Renee are as follows:
After the first tier distributions ($60000/2 = $30000 to each income beneficiaries) are accounted for, $100000 DNI remains to be assigned to the beneficiaries on the second tier ($160000 DNI - $60000 DNI used for first tier distribution).
Amount received DNI received = Gross income,
portfolio income
First tier $30,000.00 $30,000.00
Second tier $1,20,000.00 $ 1,00,000.00
Total $1,50,000.00 $ 1,30,000.00
b)
Results for Clare are as follows:
Amount received DNI received = Gross income,
portfolio income
First tier $30,000.00 $ 30,000.00
Second tier $ - $ -
Total $30,000.00 $ 30,000.00
c)
The distributions which are composed of trust accounting income that is required to be distributed currently come under First Tier Distribution.