Answer:
Results are below.
Explanation:
Giving the following information:
Sales in Units
April 70,000
May 85,000
June 110,000
July 90,000
Desired ending inventory= 15% of the following month’s sales.
The inventory at the end of March was 10,500 units.
To calculate the production required for each month, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
April:
Sales= 70,000
Desired ending inventory= 85,000*0.15= 12,750
Beginning inventory= (10,500)
Total production= 72,250
May:
Sales= 85,000
Desired ending inventory= 110,000*0.15= 16,500
Beginning inventory= (12,750)
Total production= 88,750
June:
Sales= 110,000
Desired ending inventory= 90,000*0.15= 13,500
Beginning inventory= (16,500)
Total production= 107,000
Total quarter= 268,000
The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,000 for each of the six years of its useful life. a. Determine a present value factor for an annuity of $1, which can be used in determining the internal rate of return. Carry your answer out to three decimal places.
Answer:
annuity factor for 20% and 6 periods = 3.326
Explanation:
the IRR represents the discount rate at which a project's NPV = 0
NPV = initial outlay + PV of future cash flows
NPV = 0
initial outlay = -$831,500
PV of future cash flows = $831,500 = cash flow x annuity factor
annuity factor = $831,500 / $250,000 = 3.326
using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.
So our IRR = 20%
Pearl Corporation issued 1,700 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
ex. account title DR
Account title CR
Answer:
Solution as seen below
Explanation:
Bond = 1,700 × $1,000 × 98%
= $1,666,000
Allocation :
Issue price $1,751,000
(1,700 × $1,000 × 103%)
Bonds ( $1,666,000 )
Warrants $85,000
($1,751,000 - $1,666,000)
Bond face value $1,700,000
(1,700 × $1,000)
Allocated FMV ($1,666,000)
Discounts $34,000
($1,700,000 - $1,666,000)
Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.
Which of the following is not a defense to the formation of the contract?
Group of answer choices
A. fraud
B. illegality
C. incapacity
D. unconscionability
E. mirror image rule
Answer: Mirror image rule
Explanation:
It should be noted that the contract formation defenses are fraud, illegality, incapacity, unconscionability, duress and statute of Frauds.
The mirror image rule is not among the defense to the formation of w contract. It implies that an offer should be accepted with no changes made to the offer.
four (4) ways to harvest an investment in a business.
Answer:
Harvesting an investment in a business
Four ways to harvest:
a. Outright sale of a company or the investment
b. Issue of Initial Public Offering (IPO)
c. Gradual elimination of a product, especially after the cow stage.
d. Withdrawal of additional investment and earning of profits.
Explanation:
These strategies can be employed by a business to reap the fruits from an investment. The purpose for the investment and the risk profile of the investor determines the actual strategy or combination of strategies used by the investor.
A NASDAQ security is bid at $30.25 and offered at $30.75. An over-the-counter trader effects a trade at $30.75 and charges a commission of $.50 to the customer. The price that will show on the tape is:
Answer:
$30.75
Explanation:
Given that
Security bidding = $30.25
Offered price = $30.75
over the counter trading = $30.75
Commission charged = $0.50
based on the above information, the price that shows on the tape is equivalent to the over the counter trading price i.e $30.75 also it does not include the commission charged i.e $0.50
Hence, the price is $30.75
Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this ________________gap, Keynesian theory indicates that government should ______________________.
Answer: d. inflationary; decrease government purchases or increase taxes
Explanation:
Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this inflationary gap, Keynesian theory indicates that government should decrease government purchases or increase taxes.
The Real GDP is greater than the Natural real GDP which is the potential GDP. When that happens the Economy is said to be overheated and producing above its limits as Aggregate Demand is above Aggregate Supply.
To combat this the Government according to Keynes should embark on policy that will reduce economic activity. The Government can use Contractionary Fiscal Policy that will see it reduce its spending and/or increase taxes. Both of these will have the effect of reducing the amount of money in the economy left for both investment and consumption and cause a fall in the Aggregate Demand.
Walnut has received a special order for 2,700 units of its product at a special price of $200. The product normally sells for $260 and has the following manufacturing costs: Per unit Direct materials $ 64 Direct labor 34 Variable manufacturing overhead 44 Fixed manufacturing overhead 103 Unit cost $ 245 Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the company’s short-term profit?
a. $162,000 decrease
b. $121,500 increase
c. $121,500 decrease
d. Zero.
Answer:
a. $162,000 decrease
Explanation:
Sales $540,000
(2700 unit * $200)
Less:
Direct materials $172,800
(2700 unit * 64)
Direct labor $91,800
(2,700 unit * $34)
Variable manufacturing overhead $118,800
(2700 unit * $44)
Contribution loss from existing sale $318,600 $702,000
2700 unit * ($260-$64-$34-$44)
Effect on Net operating income -$162,000
Suppose Happy Dog Soap Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $275,000
Year 2 $475,000
Year 3 $400,000
Year 4 $500,000
Happy Dog Soap Company's weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?
a. -$5,056,663
b. -$1,831,663
c -$2,106,412
d. -$2,197,996
Answer:
-$1,878,086.608
Explanation:
The computation of the net present value is shown below;
(in dollars) (in dollars)
Year Cash flows Discount factor Present value
0 -3225000 1 -3225000 (A)
1 275000 0.9259259259 254629.630
2 475000 0.8573388203 407235.940
3 400000 0.793832241 317532.896
4 500000 0.7350298528 367514.926
Total 1346913.392 (B)
Net present value -$1,878,086.608 (A - B)
This is the answer but the same is not provided in the given options
McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $3.70 per share with the first dividend exactly 14 years from today. If the required return is 3.6 percent, what is the current price of the stock?
Answer:
$64.89
Explanation:
Calculation for the current price of the stock
First step is to find the preference stock value at end of 13 years
Using this formula
P13= Annual dividend/Required return
Let plug in the formula
P13=$3.70/.036
P13= $102.78
The second step is to calculate for the current price of the stock
Using this formula
P0= P13/(1+Required return)^Dividend years
Let plug in the formula
P0= $102.78/(1 + .036)^13
P0=$102.78/(1.036)^13
P0=$102.78/1.5837
P0=$64.89
Therefore the current price of the stock will be $64.89
You can use the discounted cash flow method to estimate the cost of a company’s internal equity when the company ______________. g
Answer:
Pays any amounts of dividends
Explanation:
The Asian Garden, a local Thai restaurant, expects sales to be $ 285,000 in January. Its average customer restaurant bill is $ 15. Only 20 % of the restaurant bills are paid with cash; 60 % are paid with credit cards and 20 % with debit cards. The transaction fees charged by the credit and debit card issuers are as follows:Credit cards: $0.60 per transaction + 2 % of the amount chargedDebit cards: $0.55 per transaction + 1% of the amount chargedRequried:a. How much of the total sales revenue is expected to be paid incash?b. How many customer transactions does the company expect inJanuary?c. How much of the total sales revenue is expected to be paid with credit cards?d. How many customer transactions will be paid for by customers using creditcards?e. When budgeting for January's operating expenses, how much should the restaurant expect to incur in credit card transactionfees?f. How much of the total sales revenue is expected to be paid with debit cards?g. How many customer transactions will be paid for by customers using debitcards?h. When budgeting for January's operating expenses, how much should the restaurant expect to incur in debit card transactionfees?i. How much money will be deposited in the restaurant's bank account during the month of January related to credit and debit card sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant(there is no processing delay).j. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.
Answer:
a. How much of the total sales revenue is expected to be paid incash?
$855,000b. How many customer transactions does the company expect inJanuary?
19,000c. How much of the total sales revenue is expected to be paid with credit cards?
$171,000d. How many customer transactions will be paid for by customers using creditcards?
11,400e. When budgeting for January's operating expenses, how much should the restaurant expect to incur in credit card transactionfees?
$10,260f. How much of the total sales revenue is expected to be paid with debit cards?
$57,000g. How many customer transactions will be paid for by customers using debitcards?
3,800h. When budgeting for January's operating expenses, how much should the restaurant expect to incur in debit card transactionfees?
$2,660i. How much money will be deposited in the restaurant's bank account during the month of January related to credit and debit card sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant(there is no processing delay).
$215,080j. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.
$272,080Explanation:
total sales $285,000 / $15 = 19,000 customers
cash sales = $285,000 x 20% = $57,000credit cards = $285,000 x 60% = $171,000debit cards = $285,000 x 20% = $57,000credit card fees = (11,400 x $0.60) + ($171,000 x 2%) = $10,260
debit card fees = (3,800 x $0.55) + ($57,000 x 1%) = $2,660
IOP Company purchased a machine on 1/1/22 costing $500. Estimated life was 5 years; estimated salvage value was $100. In 2025, IOP discovered that the bookkeeper correctly used straight-line depreciation, but erroneously used an estimated life of 8 years in computing depreciation for the first 3 years of life. The Prior Period Adjustment to be recorded in 2025 will be:
Answer:
The Prior Period Adjustment to be recorded in 2025 will include a $90 debit as adjustment to Retained Earnings
Explanation:
Correct depreciation would have been = ($500-$100)/5 = $80
Depreciation charged wrongly as ($500-$400)/8 = $50
Therefore depreciation has been charged short by $30 for three years, thereby reflecting income greater by $30 each year for 3 years.
Since due to wrong depreciation retained earnings is higher by $90, therefore we have to debit retained earnings by $90
As an initial transaction in a new margin account, a customer sells short 100 shares of ABC at $20 per share. After the customer deposits the appropriate margin, the credit balance in the account will be:
Answer:
$4,000
Explanation:
Regulation T initial margin to short stock is 50% of $2,000 = $1,500 . However, since this is a new account, it must meet the minimum initial margin of $2,000 required to open the account, hence $2,000 must be deposited.
Therefore, the credit balance in the account will be;
= 2,000 + 2,000 ( 100 × $20)
= $4,000
Idaho Industries Inc. is considering a project that has an initial aftertax outlay or aftertax cost of $450,000. The respective future cash inflows from its fiveyear project for years 1 through 5 are $95,000 each year. Idaho expects an additional cash flow of $60,000 in the fifth year. The firm uses the IRR method and has a hurdle rate of 10%. Will Idaho accept the project? A. Idaho accepts the project because it has an IRR greater than 10%. B. Idaho accepts the project because it has an IRR greater than 5%. C. Idaho rejects the project because it has an IRR less than 10%. D. There is not enough information to answer this question.
Answer:
c
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = $-450,000
Cash flow each year from year 1 to 4 = $95,000
Cash flow in year 5 = $95,000 + $60,000 = $155,000
IRR = 5.62%
Idaho would reject the project because the IRR is less than the hurdle rate
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
A stock had returns of 17.88 percent, −5.16 percent, and 20.39 percent for the past three years. What is the variance of the returns?
Answer:
Variance of the return = 0.01983
Explanation:
[tex]S^{2}[/tex]= Σ[tex](X-X)^{2}[/tex]/ N - 1
Mean return = 17.88% + -5.16% + 20.39% = 11.0367%
Variance = [(17.88% - 11.0367%)2 + (-5.16% - 11.0367%)2 + (20.39% - 11.0367%)2] /(3 - 1)
Variance = [0.004683 + 0.026233 + 0.008748]/2
Variance = 0.01983
On January 1 of the current year, Paisley Company issues a 4-year, non-interest-bearing note with a face value of $7,000 and receives $4,852 in exchange. The recording of the issuance of the note includes a
Answer and Explanation:
The journal entry is shown below:
Cash Dr $4,852
Discount on note payable $2,148
To Note payable $7,000
(Being the issuance of the note is recorded)
Here we debited the cash and discount on note payable as it increased the assets and discount are always debited and credited the note payable as it also increased the liabilities so that the proper posting could be done
A three-year annuity-immediate will be issued a year from now with annual payments of 5,000. Using the forward rates, calculate the present value of this annuity a year from now.
Answer:
13,152.5
Explanation:
Given the the above parameters as mentioned in the question
To calculate the PV (Present Value)
We have PV = 5000 * 1.05 * [ 1/(1.0575)² + 1/(0.625)³ + 1/(1.065)⁴]
PV = 5000 * 1.05 * (0.8942094350 + 0.8337064929 + 0.7773230908) =
=> PV = 5000 * 1.05 * 2.5052390187
= 13,152.50
Therefore, in this case, using the forward rates, the present value of this annuity a year from now is 13,152.50
Muckenthaler Company sells product 2005WSC for $30 per unit. The cost of one unit of 2005WSC is $27, and the replacement cost is $26. The estimated cost to dispose of a unit is $3, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market
Answer:
The product 2005WSC should be reported at $26 per unit.
Explanation:
The lower-of-cost-or-market (LCM) method is a method of recording the inventory of a company which requires that the inventory cost of the company must recorded at whichever is lower between the inventory's original cost or current market price.
Applying lower-of-cost-or-market, the amount per unit at whcih product 2005WSC should be reported can be determined as follows:
Net realizable value (NRV) = Selling price per unit - Cost of disposal per unit = $30 - $3 = $27
Replacement cost (RC) = $26
NRV - Profit Margin = $27 - ($30 * 40%) = $15
Cost per unit = $27
Note that the market is the middle value of Net realizable value (NRV), $27; Replacement cost (RC), $26; and "NRV - Profit Margin", $15. Since the Replacement cost (RC) of $26 is the middle value, that the market value.
Since the market value of $26 per unit is lower than Cost per unit of $27, by applying lower-of-cost-or-market, the product 2005WSC should be reported at $26 per unit.
A producer can produce a product at a variable cost per unit of $7. The producer can sell the product for $10 each. If the fixed cost is $60,000.
Required:
a. How many units must the producer sell to break-even?
b. What is revenue at 35,000 units?
c. What is total cost at 35,000 units?
d. How many units must the producer sell in order to earn a profit of $60,000?
Answer:
a.
Break even in units = 20000 units
b.
Revenue at 35000 units = $350000
c.
Total cost (35000 units) = $305000
d.
Units required for target profit = 40000 units
Explanation:
a.
The break even in units is the number of units that must be sold in order to earn enough total revenue as to cover total costs. The break even in units can be calculated as follows,
Break even in units = Fixed cost / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = 10 - 7 =$3
Break even in units = 60000 / 3
Break even in units = 20000 units
b.
Revenue = Price * Quantity
Revenue at 35000 units = 10 * 35000
Revenue at 35000 units = $350000
c.
Total cost = Variable cost + Fixed cost
Total cost (35000 units) = 7 * 35000 + 60000
Total cost (35000 units) = $305000
d.
To calculate the units required to earn a target profit, we simply add the target profit amount to the fixed costs in the break even in units equation.
Thus, the number of units required to earn a target profit of $60000 is,
Units required for target profit = (60000 + 60000) / 3
Units required for target profit = 40000 units
When gasoline gallons are priced in terms of number of seashells, seashells serve as: Group of answer choices
Answer:
Unit of account
Explanation:
Money serves three functions :
1. Unit of account : money serves the function of determining the value of a good or service. It is usually assumed that goods that are more highly priced are more valuable that goods that have lower prices
2. Medium of exchange : goods and services can be exchanged for money. For example, if I want to buy a gallon of gasoline and pay 4 seashells, money has served as a medium of exchange.
3. store of value: money can be saved, retrieved and exchanged sometimes in the future
World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a standard cost of $63.30 per gram. In the past month, the company purchased 16,800 grams of this alloy at a total cost of $1,061,760. A total of 16,300 grams were used last month to produce 1,000 rings.
Requirements:
1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is $_____.
2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials.
3.·What is the direct material quantity variance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials.
4. How might the direct material price variance for the company last month be causing the direct material quantity variance?
The_____direct material price variance might mean that World Class Rings purchased a______. As a result, the company______quantity (efficiency) variance alloy than the standard allows. This accounts for the_____quantity (efficiency) variance.
Answer:
1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is $_____.
= $1,061,760 / 16,800 grams = $63.20 per gram
2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials.
direct materials price variance = (AP - SP) x AQ = ($63.20 - $63.30) x 16,300 = -$1,630 favorable variance
3.·What is the direct material quantity variance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials.
direct materials quantity variance = SP x (AQ - SQ) = $63.30 x (16,300 - 16,000) = $18,990 unfavorable variance
4. How might the direct material price variance for the company last month be causing the direct material quantity variance?
The FAVORABLE direct material price variance might mean that World Class Rings purchased a LOWER QUALITY MATERIAL. As a result, the company USED MORE ALLOW THAN STANDARD quantity (efficiency) variance alloy than the standard allows. This accounts for the UNFAVORABLE quantity (efficiency) variance.
Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?
a. purchase of noncurrent assets
b. purchase of treasury stock
c. discarding an asset that had been fully depreciated.
Answer:
The answer is C.
Explanation:
Discarding an asset that had been fully depreciated is the correct answer. No exchange of cash was involved in this unlike the purchase of non current asset(which is a cash outflow under investing activities) and the purchase of treasury stock (which is a cash outflow under financing activities).
Discarding a fully depreciated asset only is a non cash transaction.
An investor holds a 10 year bond pays a coupon rate of 9%. The yeid to maturity of the bond is 10% . The bond is trading:
Answer:
the bond is trading at a discount
Explanation:
There is an inverse relationship between the yield and the price of the bond.
As the yield goes up, the price of the bond goes down and as the yield goes down, the price of the bond goes up.
The yield - 10%, is greater than the coupon rate - 9%, the price will be less than the par value, and we say that the bond is trading at a discount.
You own 150 shares of Western Feed Mills stock valued at $41.20 per share. What is the dividend yield if your annual dividend income is $372
Answer:
6.01%
Explanation:
Calculation for the dividend yield
Using this formula
Dividend yield=(Annual dividend income/Numbers of shares)/Amount per shares
Let plug in the formula
Dividend yield =($372/150 shares)/$41.20 per share
Dividend yield =$2.48/$41.20
Dividend yield =0.0601*100
Dividend yield =6.01%
Therefore Dividend yield will be 6.01%
Schwab’s customers can assemble their own investment portfolios with its mutual fund evaluator tool, an example of
Answer:
A choiceboard.
Explanation:
This is generally described to be a graphical view or a teaching pattern where a tutor allows the said students to use these graphical knowledge to learn and understand a concept been impacted to them at their own pace. This choiceboard is been set up for so many reasons which may include; the encouraging of communication by giving the children means to request a particular object, also giving children certain visual prompt to say the correct words, it is also seen to streamline the selection of choice down there which could be a selection of choices.
Duerr company makes a $73,000, 90-day, 10% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
Answer: $74,825
Explanation:
Maturity value is the amount that a borrower will pay to the lender when the loan matures.
Based on the above analysis, the interest will be:
= $73,000 × 10% × 90/360
= $73,000 × 0.1 × 0.25
= $1825
Maturity value will now be the addition of the principal and the interest. This will be:
= $73,000 + $1825
= $74,825
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: 1. What is the contribution margin per unit
Answer:
Unitary contribution margin= $8
Explanation:
Giving the following information:
Sales $ 20,000
Variable expenses 12,000
Contribution margin 8,000
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= total contribution margin / total units
Unitary contribution margin= 8,000 / 1,000
Unitary contribution margin= $8
All slings shall be manufactured under ASME B30.9 guidelines and must have an affixed permanent identification tag that includes:_______
a. Name or trademark of the manufacturer
b. WLL for given type of hitch and configuration
c. Type of material
d. All of the above
Answer:
All of the above
Explanation:
All slings must have an affixed permanent identification tag that includes; The name or trademark of the manufacturer, WLL for the given type of hitch and configuration, and also the type of material used for the production of the sling. although there are many slings in the market but slings can be categorized into three recognized categories which are ; synthetic,chain and wire rope.
ASME B30 is charged with the responsibility for the Safety and Standard for Cableways, Cranes, Derricks, Hoists, Hooks, Jacks, and Slings. so they ensure that an affixed permanent identification tag is attached to products as well.
Firm M has a margin of 7%, turnover of 2.0, sales of $910,000, and average stockholders' equity of $490,000. Required: Calculate Firm M’s average total assets, net income, return on investment (ROI), and return on equity (ROE
Answer:
1. Average total asset = $455,000
2. Net income = $63,700
3. Return on investment = 14%
4. Return on equity (ROE) = 13%
Explanation:
These can be calculated as follows:
1. Average total asset
To calculate this, we use the formula for calculating the Asset turnover ratio as follows:
Asset turnover ratio = Sales / Average total asset ……………………………… (1)
Where;
Turnover = asset turnover ratio = 2
Sales = $910,000
Average total asset = ?
Substituting the values into equation (1) and solve for average total asset, we have:
2 = $910,000 / Average total asset
Average total asset = $910,000 / 2
Average total asset = $455,000
2. Net income
To calculate this, we use the formula for calculating net income margin as follows:
Net income margin = Net income / Sales ……………………………………. (2)
Where,
Margin = Net income margin = 7%, or 0.07
Net income = ?
Sales = $910,000
Substituting the values into equation (2) and solve for net income, we have:
7% = Net income / $910,000
Net income = $910,000 * 7%
Net income = $63,700
3. Return on investment
To calculate this, we use the formula for calculating the return on investment as follows:
Return on investment = Net income / Average total assets ……………… (3)
Where;
Net income = $63,700
Average total asset = $455,000
Substituting the values into equation (3), we have:
Return on investment = $63,700 / $455,000
Return on investment = 0.14, or 14%
4. Return on equity (ROE)
To calculate this, we use the formula for calculating the return on equity (ROE) as follows:
Return on equity (ROE) = Net income / Average stockholders' equity…….. (4)
Net income = $63,700
Average stockholders' equity = $490,000
Substituting the values into equation (4), we have:
Return on equity (ROE) = $63,700 / $490,000
Return on equity (ROE) = 0.13, or 13%
The Project Evaluation and Review Technique (PERT) was developed as a means of scheduling and controlling projects with constant activity times. Group of answer choices False True
Answer: False
Explanation:
The Program Evaluation and Review Technique (PERT) is used to know the schedule tasks and also know the critical path variation. It is useful to know the length of time that'll be needed for the completion of every task and how it relates to others in order to know the entire time needed to complete the particular project.
The Project Evaluation and Review Technique (PERT) is not a means of scheduling and controlling projects with constant activity times. The activity time normally varies.
