Calculate the operating assets of the company

Assignment Help Accounting Basics
Reference no: EM133056429

Question - Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below:

$

Current liabilities 4500

Notes payable 25600

Equity 150000

Personal car 15000

Tax rate 30%

Net income 19500

Sales 56200

Cost of goods sold 31000

Operating Expenses 9780

Interest on debt 8%

REQUIRED -

1. Calculate interest expense, tax and EBIT.

2. Calculate the operating assets of the company.

3. What are the profit margin and the asset turnover of the company?

4. Using Du Pont analysis, calculate the ROI of the company

5. What are the major criticisms directed towards the use of Return on Investment.

Reference no: EM133056429

Questions Cloud

Determine the variable cost per unit and total fixed cost : Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost
Determine the total cost of the units started and completed : Department G had 2,400 units 25% completed at the beginning of the period, Determine the total cost of the units started and completed
What was the number of equivalent units of production : What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories
Journalize the entry for flow of labor costs into production : Cavy Company accumulated 600 hours of direct labor on Job 456 and 850 hours on Job 999. Journalize the entry for flow of labor costs into production
Calculate the operating assets of the company : Jane Doe is a private company which a management accountant is analyzing its performance. Calculate the operating assets of the company
Find the total cost savings per month with the lowest rate : Kamala has a conventional mortgage charge against her property. Find the total cost savings per month with the lowest Rate
Determine the predetermined factory overhead rate : If factory overhead is to be applied based on direct labor hours, determine the predetermined factory overhead rate
Journalize the factory overhead incurred during April : During April, Cavy Company incurred factory overhead as follows: Utilities 460. Journalize the factory overhead incurred during April
Should BlackBoard accept the special order : The company will incur an additional salary for a supervisor of $15,500. Should BlackBoard accept the special order? Explain your decision

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd