A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.3 percent. Sales were $1,785,000, the total debt ratio was .33, and total debt was $658,000. What is the return on assets (ROA)

Answers

Answer 1

Answer:

The return on assets (ROA) of Excandesco Company is 10.921%

Explanation:

Return on assets (ROA) helps an investor see how much after-tax profit a company gained for each dollar in assets, is calculated by formula:

ROA = Net Income/ Total Assets

The total debt ratio of Excandesco was .33:

Total debt ratio = Total Debts/ Total Assets = 0.33

Total debts = 0.33 x Total Assets

From the accounting equation: Total Assets = Total debts + Total Equity

Total Equity = 0.67 x Total Assets

Excandesco Company had return on equity (ROE) of 16.3 percent.

ROE = Net income/ Equity

Net income = ROE x Equity = 16.3% x 0.67 x Total Assets = 0.10921 x Total Assets.

ROA = Net Income/  Average Total Assets = (0.10921 x Total Assets)/Total Assets = 0.10921 = 10.921%

Answer 2

To find the return on assets for Excandesco Company, first determine total assets using the total debt ratio and total debt. Then, use the return on equity to calculate net income. Finally, divide net income by total assets to get the ROA, which is 10.92%.

Calculating Return on Assets (ROA)

The question is asking how to calculate the return on assets (ROA) for the Excandesco Company using the given information. ROA is a profitability ratio that gives an idea of how efficient a company is at using its assets to generate earnings. It is calculated as the net income divided by the company’s total assets. Given the return on equity (ROE) of 16.3% and the total debt ratio of 0.33, we can determine the equity ratio, which is 1 - total debt ratio. Using the total debt of $658,000, we can calculate the company’s total assets and subsequently the net income.

To start, let's calculate the company's total assets (A) using the total debt ratio (D/A):
Total assets = Total debt / Total debt ratio
Total assets = $658,000 / 0.33 = $1,993,939.39

Next, we calculate equity (E) by subtracting total debt from total assets:
Equity = Total assets - Total debt
Equity = $1,993,939.39 - $658,000 = $1,335,939.39

Now, using ROE, we find the net income (NI):
Net Income = ROE * Equity
Net Income = 0.163 * $1,335,939.39 = $217,757.11

Finally, ROA can be determined:
ROA = Net Income / Total Assets
ROA = $217,757.11 / $1,993,939.39 = 0.1092 or 10.92%

Therefore, the return on assets for the Excandesco Company is 10.92%.


Related Questions

The organizers of a local music and arts festival approach the management of Ocelot Juice Bar, a popular business near the festival site, about becoming a sponsor. While Ocelot thinks sponsoring the festival would be great exposure for their business, they have recently had to deal with some unexpected large expenses, including updating all the plumbing in their building and replacing a cracked window. They have to keep these expenditures in mind when considering becoming a sponsor.
A) Which of the following types of decisions is illustrated in this scenario?
O programmed decision
O goal displacement decision
O quantitative decision
O nonprogrammed decision
O garbage can model decision

Answers

Answer:

nonprogrammed decision

Explanation:

Nonprogrammed decision refers to a form of decision that is made based on new circumstances that never really happened in the past. Typically This type of decision happen when there is an external factor that mess up without initial plan.

In the example above, Ocelot need to consider their decision due to unexpected large expenses. This unexpected situation will force ocelot to explore a new solution that they never encountered before.

Final answer:

The decision Ocelot Juice Bar is facing is a non programmed decision due to its non-routine nature and the various complex factors that the management needs to consider before making this decision.

Explanation:

The type of decision that best represents the scenario is a non programmed decision. Non programmed decisions are made in response to unusual or novel opportunities and threats, rather than routine matters. They are typically not structured and require more of a manager's judgement and intuition. In this case, Ocelot Juice Bar management is faced with a unique decision about whether to sponsor a local music and arts festival, something which is not a regular or routine part of their business. They must weigh the potential benefits of the increased exposure against their recent unexpected large expenses. There aren't firmly established procedures for making this decision as it involves several complex factors, including recent financial hardships and the potential financial and promotional benefits of sponsorship. Therefore, this situation calls for a non-programmed decision.

Learn more about Nonprogrammed Decisions here:

https://brainly.com/question/28541570

#SPJ12

A 1,500,000 SF plant employs 300 people and produces 177,000 LCD panel per month. The plant is idle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $4,000,000 per month and variable costs of $90 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.

Answers

Answer:

The total operating cost for the plant per YEAR is $225,000,000.

Explanation:

Fixed cost = $4,000,000 for month

Variable cost = $90 per LCD panel.

Total LCD panels produced in a month = $ 177,000.  

Total operating cost = Fixed cost + variable cost

                                  = 12*4,000,000 + 10*177,000*100

                                  = 48,000,000 + 177,000,000

                                  = $225,000,000

Therefore, The total operating cost for the plant per YEAR is $225,000,000.

Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):

A. S corporation
B. Cooperative
C. Sole proprietorship
D. Partnership
E. Double proprietorship

Answers

Final answer:

Based on the shared responsibilities and profits, Materville Studios is a Partnership, which is a business structure operated by two or more individuals.

Explanation:

If the three members of Stewed Tomatoes share work responsibilities and profits equally, their multimedia production house and recording studio, Materville Studios, is most likely a Partnership. A partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. This structure allows the profits to be shared among the partners and does not require the formalities of an S corporation or a Cooperative, such as stock distribution or formal membership processes. Furthermore, unlike a Sole Proprietorship, which is owned and run by one person, a Partnership involves multiple individuals. There is no legal business structure known as a Double Proprietorship.

an amount of money is invested at 3% annual simple interest, & $2000 more than that amount is invested at 4%. The total annual interest is $920. How much is invested at each rate?

Answers

Answer:

$12,000 at 3%.

$14,000 at 4%.

Explanation:

Let A be the amount invested at 3%, and B be the amount invested at 4%. The following system of equations can be modeled from the provided information:

[tex]B=A+2,000\\0.03A+0.04B = 920\\[/tex]

Solving the linear system:

[tex]B=-0.75A+23,000\\-0.75A+23,000 = A+2,000\\A= 12,000\\B=14,000[/tex]

$12,000 were invested at 3% and $14,000 were invested at 4%.

A toothpaste manufacturer believes its most likely customers are parents of young children who value a brand with a kid-friendly taste and texture. The company's segmentation is probably based on: Select one:
a. psychographics.
b. behavioral characteristics.
c. a combination of demographics and benefits sought.
d. a combination of behavioral characteristics and benefits sought.
e. a combination of demographics and psychographics.

Answers

Answer:

c. a combination of demographics and benefits sought.

Explanation:

The type of customer that a company aims to reach with its products is the company's demographics. In this situation, the public aimed is parents of young children, which is the demographics. A "kid-friendly taste and texture" are the benefits offered by the manufacturer that they believe is valued by their demographics. Therefore, the company's segmentation is probably based on a combination of demographics and benefits sought.

Cortina Company accumulates the following adjustment data at December 31. Indicate 1) The type of adjustment (prepaid expense, accrued revenue, and so on.2) The status of the accounts before adjustment (overstated or understated).

Answers

Answer:Incomplete question.

Problems are:

A. Supplies of $400 are on hand. Supplies account shows $1,600 balance.

B. Services performed but unbilled total $700

C. Interest of $300 has accumulated on a note payable.

D. Rent collected in advance totaling $1,100 has been earned.

Explanation:

A. Prepaid expenses. Asset Overstated

B. Accrued Revenue. Expenses understated, Asset Understated

C. Accrued Expenses. Revenue understated, liability understated, Expenses Understated

D. Unearned revenue. Liabilities overstated, Revenue understated

Assuming Cortina Company accumulates the following adjustment data at December 31. The type of adjustment is: Prepaid expenses.

Type of adjustment and account status

A. Supplies of $400 are on hand. Supplies account shows $1,600 balance.

Type of adjustment: Prepaid expenses

Status of account:

Asset OverstatedExpenses understated

B.  Services performed but unbilled total $700.

Type of adjustment:Accrued Revenue

Status of account:

Assets UnderstatedRevenues Understated

C.  Interest of $300 has accumulated on a note payable.

Type of adjustment: Accrued Expense

Status of account:

Liability understatedExpenses Understated

D. Rent collected in advance totaling $1,100 has been earned.

Type of adjustment: Unearned Revenue

Status of account:

Liabilities OverstatedRevenue understated

Inconclusion the type of adjustment is: Prepaid expenses

Learn more about type of adjustment and account status here:https://brainly.com/question/4555544

Michael Company reports the following account balances at the end of the first year of​ operations: Revenues $ 160 comma 000 Cost of Goods Sold $ 46 comma 000 Salaries Expense $ 21 comma 000 Dividends Declared and Paid ​$12,000 Utilities Expense $ 11 comma 000 Advertising Expense ​$10,000 ​Short-term Investments $ 14 comma 000 Cash $ 102 comma 000 Land $ 40 comma 000 Common Stock ​$50,000
What are total liabilities at the end of the first​ year?

Answers

Answer:

$46,000

Explanation:

The computation of the total liabilities at the end of the first​ year is shown below:

We know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = Cash + land + short term investment

                    = $102,000 + $40,000 + $14,000

                    = $156,000

Stockholder equity = Common stock + net income - dividend paid

                                = $50,000 + 72,000 - $12,000

                                = $110,000

So, the total liabilities would be

= $156,000 - $110,000

= $46,000

Working Note:

The net income is

= Revenue - cost of goods sold - Salaries Expense -  Utilities Expense - Advertising Expense ​

= $160,000 - $46,000 - $21,000 - $11,000 - $10,000

= $72,000

Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of:
O joint venture
O international partnership
O oligopoly
O joint cooperative
O international cartel

Answers

I’m not 100 yet, but I think is “joint venture”

Hope this help

This new radio network will be created as the result of: joint venture. As The company will broadcast to a potential audience of 25 million under the name Capital Disney. Hence, option A is correct.

What is joint venture?

A joint venture is a business collaboration involving two or more participants who agree to cooperate in order to achieve a specific objective. Joint ventures are a general term for a variety of cooperative business agreements that involve varied degrees of integration and may or may not have a set duration.

SAB Miller and the Molson Coors Brewing Company. This joint venture example involves reaching out to new geographic markets: To distribute all of their beer brands in the US and Puerto Rico, Molson and SABMiller established a joint venture.

Joint ventures are collaborations between two or more people or entities working on a single project, as opposed to partnerships, which consist of just one person.

Thus, option A is correct.

For more information about  joint venture, click here:

https://brainly.com/question/14486798

#SPJ5

In September, Lauren Ashley Company purchased materials costing $220,000 and incurred direct labor cost of $150,000.Overhead totaled $310,000 for the month.Information on inventories was as follows:September 1 September 30Materials $140,000 $130,000Work in process $90,000 $70,000Finished goods $60,000 $80,000

1) What was the cost of direct materials used in September ?2) What was the total manufacturing cost in September ?3) What was the cost of goods manufactured for September ?

Answers

Answer:

a. $230,000

b. $690,000

c.  $710,000

Explanation:

The computation is shown below:

a. Cost of direct material used = Beginning balance of raw material + purchase made - ending balance of raw material

= $140,000 + $220,000 - $130,000

= $230,000

b. Total manufacturing cost

Total manufacturing cost = cost of direct materials used + direct labor cost + overhead  cost

= $230,000 + $150,000 + $310,000

= $690,000

c. Cost of goods manufactured

Cost of goods manufactured = Beginning balance of Work in process + Manufacturing cost - Ending balance of Work in process

= $90,000 + $690,000 - $70,000

= $710,000

Describe the organizational structure that might best suit Suburban Homes. Ensure that your discussion includes all possible structures and why each is ruled out. Minimum 250 words.

Answers

Answer:

Suburban organizational structures of homes are of different patterns that is evolving over the years.

From the days of cluster pattern of building of homes. This was struck out because it does not allow cross ventilation.

The elongated building system by the side of roads. The danger of over closeness to road struck out this organizational structure of suburban homes.

Also,Suburban structures occasionally call to mind their roots in the frontier experience — a pioneering spirit crystallized in the image of a small house standing at the edge of a vast and savage landscape. Confronting the wilderness, this cabin provides a place of refuge for the men and women who work the land in advance of the settlement yet to come. Today the legacy of the pioneer’s cabin can be encountered at the fringes of suburbia like a portent of the vast expanses of housing that will follow in its wake. In true pioneering fashion, the structure shown here lays claim to the landscape simply by virtue of being there first. The homespun elements of pitched roof and white timber siding, fetishistically pristine against the churned soil of the building site, are the formal embodiment of the myth of Manifest Destiny — a symbol of enterprise, resourcefulness and ultimate triumph in the face of an unknown and threatening world. Like Abbe Laugier’s own primitive hut, both natural and affected, this cabin stands as the proud primogenitor of suburbia.

Final answer:

Explains different organizational structures for Suburban Homes and reasons why some are ruled out.

Explanation:

Organizational Structure for Suburban Homes

Functional Structure: This structure groups employees based on the functions they perform. It is ruled out for Suburban Homes as it may lead to inefficiencies and lack of coordination among different departments.

Divisional Structure: This structure groups employees based on products, services, or geographic locations. It is ruled out for Suburban Homes if it has a limited product line or serves a single market.

Matrix Structure: This structure combines functional and divisional structures, but it can lead to power struggles and complexity. It may not be suitable for Suburban Homes due to its potential for confusion.

Conclusion: A hybrid structure that combines elements of functional and divisional structures may be the best fit for Suburban Homes, allowing for both functional specialization and divisional focus as needed.

Unfortunately, Tori doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next five years to be able to pay for the repairs. Her account currently has $3,500, which, along with her additional contributions, is expected to continue earning 8% annual interest. If she makes equal contributions each year, how large must each contribution be for Tori to have $8,000 after five years?

Answers

Answer:

Explanation:

formula:

FV=P(1+r/100)^n

FV=future value

P=present value

r=rate of interest

n=time period

8000=4500(1+8/100)^4+P(1+8/100)^3+P(1+8/100)^2+P(1+8/100)+P

 P=each contribution amount  

8000=6122.20+P[(1.08)^3+(1.08)^2+(1.08)+1]

P=[8000-6122.20]/[(1.08)^3+(1.08)^2+(1.08)+1]

=$417

NOVA Chemicals is a plastics and chemical company whose products are used in a wide variety of applications, including food and electronics packaging. It focuses its marketing efforts primarily on companies in the food and electronics industries.
NOVA’s specific marketing efforts to its customers are known as:

a) targeting.
b) segmentation.
c) mass marketing.

Answers

Answer:

a) targeting.

Explanation:

Targeting -

It refers to the marketing strategy , where some selected or specific type of people are targeted to market the goods and service produced , is referred to as targeting .

In the process of targeting , the people are distributed according to some specific characteristics .

Hence , from the given scenario of the question,

The correct option is a) targeting .

Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,000 on capital additions. As of January 1, 2019, the house was worth $1,200,000. Mr. James was not entitled to depreciate thehouse as it was a personal-use asset.Assume Mr. James still owned the house as of December 31, 2019. On December 31,2019, the house was valued at $1,300,000. For tax purposes, how much income did Mr.James realize in 2019

Answers

Answer:

= $210,000

Explanation:

The question is to determine the income realized by Mr. James in 2019

The income is calculated as follows:

First, the basic information for calculation:

The Purchase price for the vacation house = $1,000,000

Spent Capital additions = $10,000

2019 worth of the house = $1,200,000

Secondly, based on the extracted figures, the income is calculated  as follows

Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)

= $1,200,000 - ($1,000,000 - $10,000)

= $1,200,000 - $990,000

= $210,000

Final answer:

Mr. James did not realize any income from the increase in value of his house in 2019 for tax purposes as the house was not sold.

Explanation:

For tax purposes, income is normally the amount of money received for goods or services during a certain time period. However, any increase in the value of personal assets such as a house, also known as appreciation, is not counted as income until the asset is sold. So, in 2019, even though the value of Mr. James' house increased by $100,000, from $1,200,000 on January 1 to $1,300,000 on December 31, 2019, Mr. James would not have realized, or officially 'made,' any income from his home in 2019 unless he sold it. Therefore, for tax purposes, the answer is $0.

Learn more about Income Realization here:

https://brainly.com/question/33447443

#SPJ3

Other Questions
A code that hovers our behaviors in any certain situation is known as our code of what? Does the bowling ball have more potential energy or kinetic energy as it sit on top of the building? Why? does anyone know the answer ? hinking about the constitutions of Texas and the United States, both are based upon which fundamental idea? The population in Lowell Massachusetts goes from 200 in 1820 to nearly _____________in 15 years(1835). The government could help solve the crisis if the leaders united.Which of these will make the sentence conditional in mood?A.unitedB.solveC.helpD.could Why was the class apprehensive when they found out that their new teacher, Miss Caroline was from North Alabama specifically Winston County? This document promoted the policy of containment and resist communism.Roosevelt doctrineTruman doctrineParis Peace AccordsWarsaw Pact What does ""electron density in a particular tiny volume of space"" mean? A citizens group supporting a new water bottling plant in Citizen City has produced an ad to be run on local TV. Which of the following is most likely to be heard in this ad?A) The new bottling plant will be good for our natural resources.B) The new bottling plant will bring new jobs and new funds for our schools.C) The new bottling plant will give shoppers more choices at the store.D) The new bottling plant will get many tax breaks and cost us in the long run. A light rope is attached to a block with mass 4.10 kg that rests on a frictionless, horizontal surface. The horizontal rope passes over a frictionless, massless pulley, and a block with mass m is suspended from the other end. When the blocks are released, the tension in the rope is 14.7 N.a. Draw two free-body diagrams: one for each block. b. What is the acceleration of either block? c. Find m. d. How does the tension compare to the weight of the hanging block? Sidneys made $38 more than 3 times Caseys weekly salary. If x represents Caseys weekly salary , write an expression for sidneys weekly salary The IRS promulgates several interpretive rules about corporate tax compliance, particularly for executive compensation. The rules prove to be highly controversial and are a result of misconduct on the part of the head of the IRS. Which of the following statements is correct? a. The IRS is an independent agency, and the president can fire the head of any independent agency. b. The IRS is an executive agency, and the president can fire the head of any executive agency. c. Congress can fire the head of any administrative agency. d. The president can fire the head of any administrative agency. Which of the following is a new feature in Windows Server 2016 that enables block-level data replication to occur automatically between datacenters located across the hall or on the opposite side of the world?a. Windows Containersb. Storage Spaces Directc. Storage Replicad. Storage Spaces Your car's blinker has a period of 0.85 s and at the moment is in phase with a faster blinker on the car in front of you. They drift out of phase but then get back in phase after 16 s. What is the period of the other car's blinker in s? NEEED HELP ASAP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!NEED HELP ASAP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1The biosphere includes all of the fish that are in the ocean. Even though the ocean is part of the hydroshere.TrueFalse How do you divide a decimal by a whole fraction NOVA Chemicals is a plastics and chemical company whose products are used in a wide variety of applications, including food and electronics packaging. It focuses its marketing efforts primarily on companies in the food and electronics industries. NOVAs specific marketing efforts to its customers are known as: a) targeting. b) segmentation. c) mass marketing. A(n) is created before your draft and helps organize your ideas for your presentation. On New Year's Eve. Miranda wonders if people ever realize how precious life is.Whatevents have happened in Miranda's life to remind her that life is precious?