BUSINESS COLLEGE

Peartree Inc. provides the following data: 2015 2014
Cash $47,000 $25,000
Accounts Receivable, Net 99,000 62,000
Merchandise Inventory 79,000 50,000
Property, Plant, and
Equipment, Net 181,000 120,000
Total assets $406,000 $257,000
Additional information:
Net sales $530,000
Cost of Goods Sold 150,000
Interest expense 24,000
Net income 181,000
Calculate the return on total assets for the year 2015.
A. 62.03%.B. 45.79%.C. 50.74%.D. 71.98%.

Answers

Answer 1

Answer:

Answer: 61.84%

Explanation:

The Return on Assets is a ratio that measures how effectively assets are being utilized to earn revenue.

The formula is;

Return on total Asset = Operating Income /Average Total assets

Operating Income = Net Income + Interest expense = 181,000 + 24,000 = $205,000

Average Total Assets = (Beginning Assets + Ending Assets) / 2 = (406,000 + 257,000) / 2 = $331,500

Return on Assets = 205,000/331,500 = 61.84%

The options listed are most probably for a variant of this question.

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14. Colin is making a braise for a catered lunch. How should Colin prepare the vegetables for the braise? A. Cut into large pieces
B. Puréed
C. Cooked separately beforehand

Answers

Answer: The correct answer isA; cut into large pieces.

Explanation:

When cooking a meal using the braising technique, the meat, including poultry, and vegetables need to be cut into large pieces. The vegetables and other items in the braise will be covered with enough liquid to only cover the meat and/or vegetables. The braise is then covered and simmered so that the food cooks evenly with the heat and steam. When making a stew, the vegetables should all be cut into equal slices.

You have $11,000 and will invest the money at an interest rate of .33 percent per month until the account is worth $17,200. How many years do you have to wait until you reach your target account value

Answers

Answer:

1.5 years

Explanation:

The number of years for reaching the target value, it will be computed using the excel formula which is as:

=Nper(Rate,pmt,pv,fv,type)

where

nper is number of years

rate is 33%

Pmt is monthly payment which is $0

pv is present value which is -$11,000

fv is future value which is $17,200

type is 0

So, putting the values above:

=Nper(33%,0,-11000,17200,0)

=1.5 years

Therefore, the number of years it will take to reach the amount of $17,200 from investing $11,000 today is 1.5 years.

The average annual return on the S&P 500 Index from 1986 to 1995 was 15.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these ten years?

Answers

Answer:

10.20%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where.

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

So, the market risk premium would be

= Average annual return - average annual t-bill yield

= 15.8% - 5.6%

= 10.20%

An internal control system is used to do which of the following:a. Protect Assets
b. Prevent all losses
c. Ensure reliable accounting
d. Control the entry operation

Answers

Answer:

Explanation:

An internal control system is used to ensure reliable accounting. Internal controls system can be defined as a given set of rules, policies, and procedures an organization puts in place to give direction, increase efficiency and strengthen how people follow to policies.

Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. unit product cost. budgeted ending inventory

Answers

Answer:

Chair unit cost: $ 49.72

Total cost for 675 chairs: $ 33,561

Explanation:

Direct Materials: $ 14.00

Direct Labor: 1.9 hours x $16 labor cost: $ 30.40

Overhead:

1.9 labor hours x ($ 1.6 variable rate + $ 1.20 fixed rate) = $ 5.32

Total unit cost: $ 49.72

Cost to produce 675 chairs:

675 charis x $ 49.72 per chair = $ 33,561‬

Back Bay Company is a price−taker and uses target pricing. Refer to the following information:Production volume602,000units per yearMarket price$34per unitDesired operating income17%of total assetsTotal assets$13,800,000What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.