Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars)

Year 2 Year 1
Net Sales 3,175 2,500
Operating costs except depreciation and amortization 1,120 1,040
Depreciation and amortization 159 100
Total Operating Costs 1,279 1,140
Operating Income (or EBIT) 1,896 1,360
Less: Interest 256 109
Earnings before taxes (EBT) 1,640 1,251
Less: Taxes (40%) 656 500
Net Income 984 751

Calculate the profitability ratios of Diusitech Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places.


Ratio Value

Year 2 Year 1
Operating margin 75.20%
Profit margin 40.14%
Return on total assets 17.18%
Return on common equity 32.30%
Basic earning power 26.13%


Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply.

a. A higher operating margin than the industry average indicates either lower operating costs, higher product pricing, or both.
b. If a company’s operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.
c. An increase in the return on assets ratio implies an increase in the assets a firm owns.
d. If a company issues new common shares but its net income does not increase, return on common equity will increase.

Answer:

Year 1

Profit Margin = Net Income / Net Sales

Profit Margin = $751 / $2,500

Profit Margin = 0.3004

Profit Margin = 30.04%

Basic Earning Power = Operating Income / Total Assets

Basic Earning Power = EBIT * Return on Total Asset / Net Income

Basic Earning Power = $1,360 * 17.18%/751

Basic Earning Power = 0.311115846

Basic Earning Power = 31.11%

Year 2

Operating Margin = Operating Income / Net Sales

Operating Margin = $1,896 / $3,175

Operating Margin = 0.5971653543307087

Operating Margin = 59.72%

Return on Total Assets = Basic Earning power * Net Income/EBIT

Return on Total Assets = 26.13% * $984/$1,896

Return on Total Assets = 0.1356113924050633

Return on Total Assets = 13.56%

Return on Common Equity = Net Income / Total Common Equity

Return on Common Equity = $984 / ($751/32.30%)

Return on Common Equity = $984 / $2325.08

Return on Common Equity = 0.42321124

Return on Common Equity = 42.32%

On January 1, 2015, Lake Co. purchased a machine for $1,056,000 and calculated depreciation using the straight-line method, with an estimated useful life of eight years, and no salvage value. On January 1, 2018, Lake determined that the machine had a useful life of six years from the date of acquisition, and a salvage value of $96,000. An accounting change was made in 2018 to reflect these data. The accumulated depreciation for this machine should have a balance at December 31, 2018, of ________. Group of answer choices

The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Creamy Crisp Multiple Choice has lower implicit costs, including a normal profit, than its explicit costs. is earning a normal profit but not an economic profit. is earning an economic profit. is suffering an economic loss, when implicit costs are considered.

We observe the following annualized yields on four Treasury securities: (75%)
Maturity (years) Yield-to-maturity (%)
0.5 4.00
1 4.50
1.5 5.00
2 5.50
The par is $1000 for all the securities. The one with 0.5-year to mature is a zero coupon bond. Al other securities are coupon-bearing bonds selling at par. Note that, for par bonds, the coupon rate equals YTM. (20 points)
1. Calculate the spot rates for the maturities of 0.5, 1, 1.5, and 2 years.
2. What is the price of a 2-year bond with an 8% annual coupon rate (assume $1000 par)?
3. Suppose a 1-year zero-coupon bond with a par value of S1000 is selling at $900. Is there any arbitrage opportunity? If there is, construct an arbitrage portfolio and show the profit.
4. Calculate the one-period-ahead forward rates from 0 to 0.5, from 0.5 to 1, from 1 to 1.5, and from 1.5 to 2.
5. One year from now, you plan to purchase a then one-year bond with a 1000 par and an 8% annual coupon rate. What is the expected price of the bond? Assume the expectation hypothesis holds. Under the expectation hypothesis, the expected future spot rate equals the forward rate.

Waterway Industries started the year with $66000 in its Common Stock account and a credit balance in Retained Earnings of $48400. During the year, the company earned net income of $52800, and declared and paid $22000 of dividends. In addition, the company sold additional common stock amounting to $30800. As a result, the balance in retained earnings at the end of the year would be

You are comparing two investments, both of which provide annuity payments in exchange for a lump sum investment today. Each annuity has the same monthly payment for the same number of years. You require the same rate of return for each of these investments. Annuity A pays at the beginning of each month and annuity B pays at the end of each month. Given this information, which one of the following statements is correct?
A. Both annuities have the same equal future value.
B. Annuity B is worth more today because of the timing of its cash flows.
C. Annuity A is worth more today because you will receive one more payment whereas Annuity B receives one less payment.
D. Annuity A has a higher present value and a lower future value than annuity B.
E. Annuity A has a higher future value than annuity B.

___________People who pay cash for everything they buy get loans easily.

what are the five economic lssues??​

Laubitz Company begins operations on Apr.1. Information from job cost sheets shows the following:
Manufacturing Costs Assigned
Job Number April May June Month Completed
10 $7,500 $4,400 May
11 $4,100 $6,900 $3,000 June
12 $3,200 April
13 $4,700 $9,400 June
14 $4,400 $3,600 Not complete
Each job was sold for 25% above its cost in the month following completion.
(a) Work in Process Inventory at
April 30: $Answer
May 31: $Answer
(b) Finished Goods Inventory at
April 30: $Answer
May 31: $Answer
(c) Gross Profit for
May: $Answer
June: $Answer

Wildcat Corporation's adjusted trial balance for the year ended December 31, 2021 follows:
Income from continuing operations before income taxes $ 105,000
Gain on disposal of discontinued component 23,500
Loss from operations of discontinued component (45,000 )
Wildcat Corporation is subject to a 25% effective tax rate.
Required: Prepare the December 31, 2021, income statement for Wildcat Corporation, starting with income from continuing operations before income taxes. (Amounts to be deducted should be indicated with a minus sign.)

Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.
Car Truck
Estimated wheels produced 40,000 10,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $770,000.
Exercise 17-4 Altex Inc. manufactures two products
Calculate overhead rate. (Round answer to 2 decimal places, e.g. $12.25.)
Overhead rate
$
per direct labor hour
LINK TO TEXT
Exercise 17-4 Altex Inc. manufactures two products
Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.
Car wheels
$
Truck wheels
$

for you why entrepreneurship is important? ​

DEMAND WORKSHEET Exercise 4: Identifying the determinants of demand. You have seen have how an increase in demand is depicted on a graph by a shift in the demand curve. When the demand curve shifts upward and to the right this is indicative of an increase in demand When the demand curve shifts to the left, this is indicative of a decrease in demand. Factors that result in a change in demand are the determinants of demand. Complete the table below. For each determinant of demand: indicate whether demand will increase or decrease provide an explanation as to why​

Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:

During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April. $fill in the blank 3

Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.

Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.

This chapter described various situations that emphasize the need for controls. In the first sce- nario presented, a furniture store sells merchandise on credit. Based on the descriptions of controls given in this chapter, identify the various controls that should be implemented in the furniture store system to ensure that corrections to customer bal- ances are made only by someone with the correct authorization. In the second scenario illustrating the need for controls, an accounts payable clerk uses the system to write checks to suppliers. Based on the information in this chapter, what kinds of controls would you implement to ensure that checks are written only to valid suppliers, that checks are written for the correct amount, and that all payouts have the required authorization

Fuente, Inc., has identified an investment project with the following cash flows.

Year Cash Flow
1 $ 1,090
2 1,320
3 1,540
4 2,280

a. If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. If the discount rate is 13 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. If the discount rate is 22 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Premium Co. produces park benches. A customer has offered Premium Co. $700 per unit for 100 units. The normal selling price is $850 per bench. To fill the order, Chris would incur unit-level costs of $500 per unit and batch-level costs of $15,000. Premium Co. also incurred $20,000 of product-level costs to design the bench and $200,000 of facility-level costs. Based on the differential revenues and costs, Premium Co. should ______ the special order.

If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the arbitrage-free price of that bond?

At December 31, 2017, Kefir Company had 800,000 shares of common stock outstanding. On October 1, 2018, an additional 160,000 shares of common stock were issued. In addition, Kifer had $10,000,000 of 5% convertible bonds outstanding at December 31, 2017, which are convertible into 360,000 shares of common stock. No bonds were converted into common stock in 2018. The net income for the year ended December 31, 2018, was $2,500,000. Assuming the income tax rate was 30%, the diluted earnings per share for the year ended December 31, 2018, should be:________ (rounded to the nearest penny) A) $3.39. B) $2.50. C) $2.38. D) $2.08.

Breakdown on Daily Allowance
Name:
Р
Daily Allowance:
Less: Daily Expenses
Food
P
Fare
School Supplies
Recreation
Others
Total
P​

Are there items that would receive the same share?​

the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution Format Income Statement could be prepared by someone external to the company just by using the reported GAAP Traditional Income Statement. The Contribution Format income statement is utilized only for external reporting purposes. The Contribution Format Income Statement is utilized for internal decisionmaking purposes. The format of the Contribution Format Income statement begins as: Sales minus Cost of Goods Sold equals Contribution Margin.

Consumers spend _______ a year on credit card penalties and fees.

$10 million
$110 billion
$90 billion
$80 million

When a suspect is read his or her Miranda rights, he or she is reminded that he or she ______.


does not have the right to an attorney

does not have the right to remain silent

must answer all police questions

has the right to remain silent

Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Morton Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $49,000 and at the end of the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied to Work in Process was $70,000. The adjusted cost of goods sold that would appear on the income statement for November is:

In January 2019, Rankine Company paid $8,500,000 for land and a building. An appraisal estimated that the land had a fair value of $2,500,000 and the building was worth $6,000,000. Rankine estimated that the useful life of the building was 30 years, with no residual value. a. Calculate annual depreciation expense using the straight-line method. $Answer b. Calculate depreciation for 2019 and 2020 using the double-declining-balance method. Round answers to the nearest whole number. 2019 $Answer 2020 $Answer c. Assume that in 2021, Rankine changed its estimate of the useful life of the building to 25 years. If the company is using the double-declining-balance method of depreciation, what amount of depreciation expense would Rankine record in 2021

g The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: Group of answer choices 200% of direct labor cost. 50% of direct labor cost. 80% of direct labor cost. 40% of direct labor cost. 300% of direct labor cost.

Suppose that Spain and Austria both produce oil and olives. Spain's opportunity cost of producing a crate of olives is 5 barrels of oil while Austria's opportunity cost of producing a crate of olives is 10 barrels of oil. By comparing the opportunity cost of producing olives in the two countries, you can tell that_________ has a comparative advantage in the production of olives and___________ has a comparative advantage in the production of oil.

Suppose that Spain and Austria consider trading olives and oil with each other. Spain can gain from specialization and trade as long as it receives more than _________of oil for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _________of olives for each barrel of Oil it exports to Spain.