Using the selected information given below for Luk Company, calculate the return on assets, debt ratio, and profit margin. Comment on the results of operations and the financial position of the company for the year.Sales1,050,000Expenses795,000Assets (beginning of the year)1,500,000Assets (end of the year)1,900,000Liabilities850,000
What will be an ideal response?
Return on assets = ($1,050,000 - $795,000)/(($1,900,000 + $1,500,000)/2) =15.0%
Debt ratio=$850,000/1,900,000=44.7%
Profit margin=$255,000*/1,050,000=24.3%
* Net income = $1,050,000 - $795,000 = $255,000
The company is performing well. Profit margin and debt ratio are at acceptable levels. Return on assets may be low. This would depend on the type of business and expectations of management. The increase in assets during the year could have resulted in the lowering of return on assets. This would need to be compared to prior years and to industry standards, and should be monitored in subsequent years.
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The following frequency distribution shows the starting salaries (in $1,000s) of a sample of business students: Starting Salary Frequency 22 - 26 6 27 - 31 5 32 - 36 8 37 - 41 4 For the above data, compute the mean starting salary: (Give your answer in dollars.)
What will be an ideal response?
The return on investment measure is also referred to as:
A. Net margin. B. Return on equity. C. Return on assets. D. Return on debt.
Rugged Boats, Inc., and Whitewater Rafting enter into a contract for a sale of six custom-made rubber rafts. Whitewater pays for the goods, but Rugged does not deliver. Whitewater can use replevin as a remedy if
A. Rugged is lawfully withholding the goods. B. Whitewater cannot effectively cure the defect. C. Whitewater is unable to cover for the goods. D. the goods have not been identified to the contract.
When using MRP and kanban together:
A) the control capabilities of MRP are used instead of those from kanban. B) the planning capabilities of kanban are used instead of those from MRP. C) the demand rate should be variable in order to derive the greatest benefit from the MRP portion of the system. D) the number of kanbans is recalculated from the MRP system's order changes throughout the horizon.