Answer:
point of sale display
sampling
event marketing
in store promotion
RKI Instruments borrowed $4,100,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,325,000. What was the interest rate on the loan
Answer:
29.88%(30% when rounded to the nearest whole percentage)
Explanation:
The amount borrowed was the present value of the loan while the amount repaid was the future value of the loan, hence, considering the relationship between the present value and the future value, we can determine the interest rate on the loan as shown thus:
FV=PV*(1+r)^n
FV=future value=the repayment=$5,325,000
PV=present value=loan amount= $4,100,000
r=rate of interest=the unknown
n=the duration of the loan=1 year
$5,325,000= $4,100,000*(1+r)^1
$5,325,000/$4,100,000=1+r
r=($5,325,000/$4,100,000)-1
r=1.298780488 -1
r=29.88%
ECONOMICS
Question 3 of 10
Which fiscal policy would most likely result in the largest budget deficit?
A. Low taxation and low spending
B. Low taxation and high spending
C. High taxation and low spending
D. High taxation and high spending
Low taxation and high spending are the fiscal policies that are most likely to result in the highest budget deficit.
So, option B. is correct.
What is fiscal policy?The employment of government spending and taxation to impact the economy is known as fiscal policy. Fiscal policy is often used by governments to foster robust and sustained growth while also reducing poverty.
This is in contrast to monetary policy, which is implemented by central banks or other monetary authorities.
Low taxation and high spending are the fiscal policies that are most likely to result in the highest budget deficit.
So, option B. is correct.
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Taylor Company leased an asset from Lease Corp. using an operating lease for equipment with a useful life of seven years. The initial lease term was for three years. After two years, Taylor Company and Lease Corp. agree to extend the lease term by three years, and to change the amount of lease payments. The additional three years were not originally an option. How should Taylor address this lease modification
Answer:
update the right-of-use asset for the increase in present value
reclassify from an operating lease to a finance lease
Explanation:
In the given instance there is a modification to the lease contract after 2 years of the 3 year lease.
Taylor Company and Lease Corp. agree to extend the lease term by three years, and to change the amount of lease payments.
Financial lease is one that confers a form of ownership of the lessee. He does not only have operational control of the equipment but also bears gains or loss from change in the value of the asset.
The new lease agreement covers most of the useful life of the equipment so it confers some degree of ownership to Taylor company. There is a need to reclassify the lease as a financial lease.
The present value of the asset has also increased has also increased so the right of use should be upgraded
The ability to market your skills and persuade internal customers to use your services is an example of:
Answer:
HELPPPPPPPPP
Explanation:
an example of:
ZeroSun Pictures is a Denver-based video production start-up agency. Imagine the founders are currently trying to decide between two cost structures, one that has a greater proportion of fixed costs (e.g., proprietary equipment), the other that is more heavily weighted to variable costs (e.g., leased equipment). Estimated revenue and cost data for each alternative is as follows:
Alternative #1 Alternative #2
Selling price per unit $100 $100
Variable cost per unit $85 $80
Fixed cost per year $40,000 $45,000
a. Under Alternative #1, what is the amount of revenues that would allow the company to breakeven?
b. What sales volume, in units, is needed for the total costs in each structure alternative to be the same?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative #1 Alternative #2
Selling price per unit $100 $100
Variable cost per unit $85 $80
Fixed cost per year $40,000 $45,000
To calculate the break-even point in sales, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 40,000 / [(100 - 85) / 100]
Break-even point (dollars)= $266,666.67
Now, we can determine the sales volume for the two options:
Alternative 1:
Total cost= 40,000 + 85x
Alternative 2:
Total cost= 45,000 + 80x
x= number of units
40,000 + 85x = 45,000 + 80x
5x = 5,000
x= 1,000 units
The indifference point is 1,000 units.
Prove:
Total cost= 40,000 + 85*1,000= $125,000
Total cost= 45,000 + 80*1,000= $125,000
Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Used Direct Labor Used Factory Overhead Total Manufacturing Costs (1) $42,300 $64,000 $52,300 $ (2) $ $77,800 $144,000 $297,000 (3) $58,300 $ $115,000 $314,000
Answer and Explanation:
The computation of the missing amount of the three different situations is shown below:
As we know that
Total manufacturing costs = Direct materials + Direct labor + Factory overhead
Now
Direct materials Direct labor Factory overhead Total manufacturing
costs
$42,300 $64,000 $52,300 $158,600
$75,200 $77,800 $144,000 $297,000
$58,300 $140,700 $115,000 $314,000
Assume that you open a 100 share short position in Jiffy Inc. common stock at the bid-ask price of $32.00 - $32.50. When you close your position the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, calculate your profit or loss on the investment position
Answer:
There is a net loss of $132.50
Explanation:
First, we need to determine the cash flows at the time of open the position and close the position.
Cash outflow
Cash flow from opening the position = Value of position + Commission
Where
Value of position = Numbers of shares - opening value per stock = 100 x 33 = $3,300
Commision = 100 x 33 x 0.5% = $16.50
Placing values in the formula
Cash flow from opening the position = $3,300 + $16.50 = $3,316.50
Cash inflow
Cash flow from Closing the position = Value of position - Commission
Where
Value of position = Numbers of shares - opening value per stock = 100 x 32 = $3,200
Commision = 100 x 32 x 0.5% = $16
Placing values in the formula
Cash flow from opening the position = $3,200 - $16 = $3,184
Now calculate the profit or loss on the position
Net profit / loss = Cashinflow - Cash outflow = $3,184 - $3,316.50
Net Loss = $132.50
Payroll Entries Urban Window Company had gross wages of $252,000 during the week ended July 15. The amount of wages subject to social security tax was $226,800, while the amount of wages subject to federal and state unemployment taxes was $32,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.6% The total amount withheld from employee wages for federal taxes was $50,400. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize the entry to record the payroll for the week of July 15.
Answer and Explanation:
The journal entry is given below
Wages expense Dr $252,000
To Social security tax payable ($252,000 × 6%) $15,120
To Medicare tax payable ($252,000 × 1.5%) $3,780
To employee federal income tax payable $50,400
To wages payable $182,700
(Being the payroll is recorded)
Here the wages payable is debited as it increased the expense and the payable is credited as it also increased the liabilities
Match the following product types to the appropriate product development description. A. Entail unusually large uncertainties about the technology or market. The development process takes steps to address those uncertainties. B. A firm with a new proprietary technology seeks out a market where that technology can be applied. C. Uses a repeated prototyping cycle. Results from one cycle are used to modify priorities in the ensuing cycle. D. The production process has an impact on the product properties. Therefore, product design and process design cannot be separated. E. Products are designed and built around a pre-existing technological subsystem.
Answer:
1. High-risk products.
2. Technology-push products.
3. Quick-build products.
4. Process-intensive products.
5. Platform products.
Explanation:
A. High-risk product: Entail unusually large uncertainties about the technology or market. The development process takes steps to address those uncertainties.
B. Technology-push product: A firm with a new proprietary technology seeks out a market where that technology can be applied.
C. Quick-build products: Uses a repeated prototyping cycle. Results from one cycle are used to modify priorities in the ensuing cycle.
D. Process-intensive product: The production process has an impact on the product properties. Therefore, product design and process design cannot be separated.
E. Platform products: Products are designed and built around a pre-existing technological subsystem.
Exhibit 34-5 Country 1 Country 2 Good A Good B Good A Good B 100 0 75 0 80 10 60 30 60 20 45 60 40 30 30 90 20 40 15 120 0 50 0 150 Refer to Exhibit 34-5. The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2. Group of answer choices 20A; 15A 1/20A; 1/15A 10A; 15A 1/2A; 1A 2A; 1/2A
Answer:
2A; 1/2A
Explanation:
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
To determine opportunity cost, add the total amount of good A and B produced by each country
Total quantity of good A produced by country 1 = 300
Total quantity of good b produced by country 1 = 150
opportunity cost of producing good B = 300A/ 150 = 2A
Total quantity of good A produced by country 2 = 225
Total quantity of good b produced by country 2 = 450
opportunity cost of producing good B = 225 / 450 = 0.5A
Differences in customer rage behaviors of customers from japan & usa (1200 words )
Answer:
There is difference in the behavior of people who belong to different nations. The people in USA will make different decisions based on their preferences than the decisions made by the people of Japan.
Explanation:
Customer rage is the response of customer to the faulty good. If the customer is not satisfied he may get angry and show some emotions. The behavior in this situation is different for every person. The people in USA might respond less angry than the people in Japan. Their anger and emotions is driven by many factor. The job security in the country, Climatic conditions, political situations, literacy rate, basic necessity problems and many others. The people living in a poor country may show anger in small things while the people in developed country are less angry and more understanding.
State if each of the following statements is true or false. Justify your answer. Decision trees can help identify and describe real options. The option to expand increases PV. High abandonment value decreases PV.
Answer and Explanation:
a. The first statement is true as the technique of the decision tree would be represented as a tree-shaped for the possible outcomes also it would help to understand the risk attached with the projects plus it would also provide the options
b. The second statement is true as the present value is the value of the today it would be discounted with the cash flows in order to calculate the present value. If the company has more capital so it would increase in the cash flows so that the investment would be covered up
c. The third statement is false as the abandonment value is the sales value that would be sold immediately. It is not related with the present value also if there is high abandonment value so it would not decrease the present value
Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $53 per unit. The company also gathered the following cost estimates for the next quarter: CostCost Formula Cost of good sold$23 per unit sold Advertising expense$173,000 per quarter Sales commissions6% of sales Shipping expense$68,000 per quarter $5.00 per unit sold Administrative salaries$83,000 per quarter Insurance expense$9,300 per quarter Depreciation expense$53,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Answer:
Part 1.
Contribution format income statement for the next quarter.
Sales $1,431,000
Less Variable Costs
Cost of Sales $621,000
Sales commissions $85,860
Shipping expense : Variable $135,000 ($832,860)
Contribution $598,140
Less Fixed Costs
Advertising expense $173,000
Shipping expense : Fixed $68,000
Administrative salaries $83,000
Insurance expense $9,300
Depreciation expense $53,000 ($386,300)
Net Income $211,840
Part 2.
Traditional format income statement for the next quarter.
Sales $1,431,000
Less Cost of Sales ($621,000)
Gross Profit $810,000
Less Operating Expenses
Sales commissions $85,860
Shipping expense : Variable $135,000
Advertising expense $173,000
Shipping expense : Fixed $68,000
Administrative salaries $83,000
Insurance expense $9,300
Depreciation expense $53,000 ($598,160)
Net Income $211,840
Explanation:
Contribution format income statement
Here the Company calculates Contribution. Contribution is the amount remaining after All Variable Costs are deducted from Sales Revenue. All the Fixed Costs are expensed in the year they are incurred.
Traditional format income statement
Here the Company calculates Gross Profit. Gross Profit is the amount remaining after All Cost of Sales are deducted from Sales Revenue. All the other costs incurred are expensed in the year they are incurred as operating expenses.
The demand for wooden pencils is very responsive to a change in price. That is, the demand for these pencils is highly elastic. Suppose that workers in this industry are successful in negotiating a higher wage from management. As a result:______
A. The price and quantity of pencils purchased will fall, and gross revenues will rise.
B. Price and quantity purchased will rise, and gross revenues will fall.
C. Price will fall, quantity purchased will rise, and gross revenues will rise.
D. Price will rise, quantity purchased will fall, and gross revenues will fall.
Answer:
D. Price will rise, quantity purchased will fall, and gross revenues will fall.
Explanation:
It will lead to a higher price of the good as the management has to take into consideration the amount to wages to be paid to the workers, thus increasing the price of the goods. This will result to a lower demand at a higher price because the price increases and competitions will take advantage of the situation and that will also reduce the revenue of the firm.
The statement of cash flows: Multiple Choice Presents the financial position of a company at a point in time. Indicates if a company is profitable. Shows the net change in cash over a period of time. Reports the difference between revenues and expenses.
Answer:
???????
Explanation:
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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.1%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 11 % 33 % Bond fund (B) 8 % 25 % The correlation between the fund returns is .1560. Suppose now that your portfolio must yield an expected return of 9% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio
Answer:
standard deviation of your portfolio = 21.35%
Explanation:
Without mincing words, let's dive straight into the solution to this particular question. The following parameters are given in the question and they are:
The expected Return Standard Deviation Stock fund (S) = 11 % with standard deviation of 33%[=0.33] and the expected Return Standard Deviation Stock fund is 8% with standard deviation of 25 %[=0.25]. Also, it is given that the correlation between the fund returns = .1560.
STEP ONE: Determine the proportion of stock in minimum risky portfolio.
Therefore, the proportion of stock in minimum risky portfolio = [( 0.25)² - ( 0.33 × 0.25 ×.1560)] ÷ [ (0.33²) + (0.25²) - ( 2 × 0.33 × 0.25 × 0.156)] = 34.07%[=0.3407].
STEP TWO: Determine the proportion of bond fund in minimum risky portfolio.
The proportion of bond fund in minimum risky portfolio = 1 - 0.3407 = 0.6593 = 65.93.
STEP THREE: Determine the expected return of minimum risky portfolio.
The expected return of minimum risky portfolio = 0.3407 × 0.11 + 0.6593 × 0.08 = 0.0902= 9.02%.
STEP FOUR: Determine the standard deviation of your portfolio.
The standard deviation of your portfolio = [(0.6593²) × (0.25²) × (0.3407²) × (0.33²) + ( 2 × 0.6593 × 0.340 × 0.33 × 0.25 × 0.156)]^0.5 = 0.2135 = 21.35%
Suppose a commerical bank is subject to a 14 percent reserve requirement. The bank currently has $23,000 in checkable deposits and $11,000 in outstanding loans. What is the whole dollar amount of additional loans the bank may loan out. (If the bank is short on reserves enter your number as a negative number).
Answer:
$8,780
Explanation:
Checkable deposits = $23,000
Reserve ratio = 14%
Required reserves = $23,000*14% = $3,220
Outstanding loans = $11,000
So, the additional loans that a bank may loan out is $8,780 ($23,000 - $3,220 - $11,000).
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared. a. True b. False
Answer:
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared.
a. True
Explanation:
The incidence of the FICA tax refers to the extent to which an individual employee or the employing organization suffers from the imposition of the FICA tax. In the final analysis, the incidence may not be borne by the organization but consumers of its goods and services, depending on the elasticity of demand. Employers and employees usually split the FICA tax equally. The FICA (Federal Insurance Contribution Act) refers to the federally mandated tax for Social Security and Medicare.
The statement that "Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared" is True.
What is FICA tax?FICA tax can be regarded as U.S. federal payroll tax.
Therefore, Federal Insurance Contributions Act is been removed from each paycheck and split equally between employers and employees.
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The Core Principles of Economics — End of Chapter Problem
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia
typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend's
company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat
at home, using groceries that cost her $8.
a. Calculate Jia's costs associated with going out to dinner with her friend.
$
b. Calculate Jia's benefits associated with going out to dinner with her friend.
S
Answer:
Cost/58
Benifots /63
Explanation:
She should go out to eat with friend
Let's examine the market for iPads. Assume iPads are a normal good, Microsoft Surfaces are a substitute, and Apple Pencils are a complement. If the price of silicon (a key component of iPads) increases, what would happen to Supply or Demand for iPads (all else held equal)?
Answer:
the supply curve for iPads would shift to the left, decreasing the quantity supplied at every price level. This shift would result in a price increase. Since the price of iPads increased, the demand will decrease, also decreasing the demand of Apple Pencils.
Since Microsoft Surface are substitutes, when the price of iPads increase, the demand for Surface tablets will increase.
A significant advantage of the payback period is that it Group of answer choices tends to reduce firm risk because it favors projects that generate early, less uncertain returns. places emphasis on time value of money. allows for the proper ranking of projects.
Answer:
tends to reduce firm risk because it favors projects that generate
Explanation:
Payback period as well as capital budgeting is concerned can be regarded as the required time that the funds that was expended on a particular investment is been recouped. It could also be the time to get to break-even point. Instance of this is $1200 investment which was invested at the beginning of 1st year which give a return of $400 towards the end of 1st year as well as 2nd year can be regarded to have two years of payback period. It should be noted that the A significant advantage of the payback period is that it tends to reduce firm risk because it favors projects that generate
Which situation best illustrates an effect of the law of supply
Brooklyn Cabinets is a manufacturer of kitchen cabinets. The two cabinetry styles manufactured by Brooklyn are contemporary and farmhouse. Contemporary style cabinets sell for $90 and farmhouse style cabinets sell for $85. Each cabinet produced must go through carpentry, painting, and fiishing processes. The following table summarizes how much time in each process must be devoted to each style of cabinet.
Hours per process
Style Carpentry Painting Finishing
Contemporary 2.0 1.5 1.3
Farmhouse 2.5 1.0 1.2
Carpentry costs $15 per hour, painting costs $12 per hour, and fiishing costs $18 per hour, and the weekly number of hours available in the processes is 3000 in carpentry, 1500 in painting, and 1500 in fiishing. Brooklyn also has a contract that requires the company to supply one of its customers with 500 contemporary cabinets and 650 farmhouse style cabinets each week.
Let
x = the number of contemporary style cabinets produced each week
y = the number of farmhouse style cabinets produced each week
a. Develop the objective function, assuming that Brooklyn Cabinets wants to maximize the total weekly profit.
b. Show the mathematical expression for each of the constraints on the three processes.
Hours available in carpentry: x1 + y1 ≤
Hours available in painting: x2 + y2 ≤
Hours available in fiishing: x3 + y3 ≤
c. Show the mathematical expression for each of Brooklyn Cabinets' contractual agreements.
Answer:
a) Objective Function:
P = $18.6x + $13.9y
b)
1. 2x + 2.5y [tex]\leq[/tex] 3000 For Carpentry
2. 1.5x +1.0 y [tex]\leq[/tex] 1500 For Painting
3. 1.3x + 1.2y [tex]\leq[/tex] 1500 For Finishing
c)
x [tex]\geq[/tex] 500
y [tex]\geq[/tex] 650
Explanation:
Data Given:
Contemporary Style Cabinets Sells For = $90
Farmhouse Style Cabinets Sell For = $85
Hours per process:
For Contemporary:
Time for Carpentry = 2.0
Time for Painting = 1.5
Time for Finishing = 1.3
Similarly,
for Farmhouse Cabinet style:
Time for Carpentry = 2.5
Time for Painting = 1.0
Time for Finishing = 1.2
Costing for Processes:
Carpentry = $15/hr
Painting = $12/hr
Finishing = $18/hr
Availability of hours in the week:
Carpentry = 3000 hours
Painting = 1500 hours
Finishing = 1500 hours
Orders for Cabinets in the week:
Contemporary Cabinets = 500 units/week
Farmhouse Style = 650 units/week
Suppose,
x = number of contemporary style cabinets
y = number of Farmhouse cabinets
Step 1:
We need to calculate the total cost of the cabinets first.
Cost of Contemporary Style:
(2 x $15) + (1.5 x $12) + (1.3 x $18) = $71.4/cabinet
Similarly,
Cost of Farmhouse Style:
(2.5 x $15) + (1 x $12) + (1.2 x $18) = $71.1/cabinet
We know that the selling price of Contemporary and Farmhouse cabinets is $90 and $85 respectively. So, we can calculate the profit of both the cabinets.
For Contemporary Style:
Profit = ($90-$71.4) =$18.6
For Farmhouse Style:
Profit = ($85-$71.1)= $13.9
a) Objective Function for the maximization of the profit:
We know that x represents contemporary style and y represents farmhouse style. So, the profit is the basically the objective function. So.,
Objective Function:
P = $18.6x + $13.9y
b) Mathematical Expression for the constraints, which are:
1. 2x + 2.5y [tex]\leq[/tex] 3000 For Carpentry
2. 1.5x +1.0 y [tex]\leq[/tex] 1500 For Painting
3. 1.3x + 1.2y [tex]\leq[/tex] 1500 For Finishing
c) Mathematical Expression for Contracts:
x [tex]\geq[/tex] 500
y [tex]\geq[/tex] 650
Which is the best definition of a wireless network?
A.
A wireless network is a private website.
B.
A wireless network connects computers and devices without cords or cables.
C.
A wireless network connects computers using Ethernet cables.
D.
A wireless network connects computers to smartphones.
Answer:
A wireless network connects computers and devices without cords or cables.
Explanation:
A wireless network is internet without any cords
Three years ago, Charles purchased a health policy from the QRS Company; he has purchased two additional contracts from the same insurer since. Each contract contains the Other Insurance With This Insurer Provision. What happens if Charles has a claim
Answer: a. Only one policy will pay, the premiums for the other contracts will be returned.
Explanation:
When there are multiple insurance contracts from the same insurer and these contracts have a ''Other Insurance With This Insurer'' provision, it means that in cases where the insured wants to claim, they can choose whichever of the policies they want and that one will pay out but they cannot pick them all.
The premiums paid on the other contracts/s will be returned to the insured because it represents excess coverage.
Which term refers to placing a load on the system or application to see where the performance and usability breakpoints exist
Answer:
Stress testing
Explanation:
Stress testing involves putting a system or application through extreme operating conditions to observe the breaking point of the system.
It is used to ascertain how stable and reliable a software program is.
The aim is to determine if the application will perform below optimal or crash during extreme operating situations.
The steps for stress testing are:
- Stress test planning
- Automation scripts are created
- Script execution
- Result analysis
- Optimisation of the application
Indicate the section operating activities,investing activities,financing activities,or none in which each of the following would be reported on the statement of cash flows prepared by the indirect method: a gain on sale of fixed assets b net income c retirement of long-term debt d sale of capital stock e distribution of stock dividends f payment of cash dividends g purchase of fixed assets h sale of fixed assets i receipt of interest revenue j Payment of interest expense
Answer and Explanation:
The indication of the following transactions for the cash flow statement is given below:
a. Operating activities
b. Operating activities
c. Financing activities
d. Financing activities
e. None
f. Financing activities
g. Investing activities
h. Investing activities
i. Operating activities
j. OPerating activities
If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because:________
a. the process is not adversarial.
b. the dispute will eventually go to trial.
c. the case will be heard by a mini-jury.
d. the resolution of the dispute will be decided an expert.
Answer:
d. the resolution of the dispute will be decided an expert
Explanation:
Mediation is the process by which conflicts are resolved through a third party that provides expert and impartial negotiation on issues that occurs between different parties.
To make the process effective the parties are required to fully participate in the mediation.
All sides air their views and the expert tries to find a middle ground that the warring parties can agree to.
Java and Kaffe who have a long-standing business relationship need an expert to act as mediator in resolving their issues.
PrintItem 1 Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,000, and his ending partnership capital balance for the current year is $62,000. His share of this year's partnership income was $6,250. What is his partner return on equity
Answer: 10.68%
Explanation:
The partner return on equity will be calculated by using the formula given as:
= (Partner Net income/Average Partner equity) × 100
The Partner’s Net income is $6250
Average partner equity = (Opening partner equity + Closing partner equity) × 100
= ($55,000 + $62,000) / 2
= $117,000 / 2
= $58500
The Partner return on equity will then be:
= 6250 / 58500 × 100.
= 10.68%
What are the benefits of training?