Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.) ROA is a measure of profitability or effectiveness of resource usage calculated by expressing a company’s net income as a percentage of total assets. As for Sepracor, its ROA is 4.5%. This means that Sepracor created 4.5 cents of earnings from each dollar of assets. The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested.
(Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5) sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5.
There is a very low probability (5% at most) that the annual income for the data from AJ DAVIS is less than $50,000. The way that we concluded this was to test the probability that the annual income of our customers is $50,000 versus the probability that the average annual income was less than $50,000. What we found was that there is a 95% chance that the average annual income of our customers is between $69,997.9 and $70,001.8. This was also backed with a p-value (which determines the strength of the evidence) that showed weak evidence against the average income equaling $50,000. Since we cannot deny that the annual income average is $50,000, we have no choice but to keep it as a consideration moving forward.
To forecast 2010 sales based on 2009 sales, Equation 1 must be used: St = $500,000 + $1.10St–1 S2010 = $500,000 + $1.10($1,500,000) = $2,150,000 3. Equation 2 requires a forecast of gross domestic product. Equation 3 uses the actual gross domestic product for the past year and, therefore, is observable. 4. Advantages: Using the highest R2, the lowest
13- Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the
Texaco stock is currently selling for $60 per share while Delta sells for $40 per share. You determine that the major factor that will impact your investment is the price of oil. After careful forecasting, you narrow the possible outcomes down to 3 major categories, each of which is equally likely to occur. Possibility Oil price increases Oil price unchanged Oil price decreases Texaco Stock pays a $4 per share dividend; stock price is $68 pays a $3 per share dividend; stock price is $60 pays a $2 per share dividend; stock price is $52 Delta Air Lines Stock pays no dividend; stock price is $32 pays a $2 per share dividend; stock price is $42 pays a $2 per share dividend; stock price is
Increasing first shift capacity can reduce per unit labor costs because you can produce more products in less time which reduces the labor costs. 5. Automation reduces per unit labor costs but is has two disadvantages. What are these? Two disadvantages to automation are that it costs more and it is not easily changed.
This decision was based on an analysis of relevance costs of the fabric at specific quantities based on 2.5 year historical sales volumes. Incremental costs include direct labor, and materials. As shown below in Table 1, for years 1988 – 1989, total revenue minus relevant costs (both incremental and avoidable costs) turns out to be more profitable at the $3.00 price point than at the higher price point because of the increased demand. If BTC decides to stay at the $4.00 per yard price point that they have been employing during the first two quarters of 1990 then their contribution margin will not be as high (see table 1). One interesting point is that the highest contribution margin for BTC will result when both BTC and Calhoun & Pritchard (C&P) raised the price to $4.00; this is still true even with the 20% erosion in demand due to the fabric not being available at $3.00 mentioned in the text book (see table 2).
Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007). Furthermore revenue has risen from €231 million in 1998 to €2,714 million in 2008 and net profits have increased from €48 million to €480 million, over the same period despite the worldwide recession and the high oil prices. (4.1) External Environment Analysis Purpose of an external environment analysis is to identify or develop a finite list of opportunities that could benefit a firm and threats that could be avoided. Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. The external analysis can be divided into macro environment and industry analyses.
Airbus management announced the first orders for the A3XX at the bi-annual Air Show in Famborough, England, in July 2000. Noel Forgeard, Airbus' CEO, reported that Air France, Emirates Airlines, and International Lease Finance Corporation had agreed to order ten, seven, and five jets, respectively, and that there were another 30 orders lined up.' The initial orders were a positive, though not unexpected, sign. The real question, however, was whether there was sufficient long-term demand to justify industrial launch. Management believed they would break even on an undiscounted cash flow basis with sales of 250 planes, and could sell as many as 750 over the next 20 years!