What is the return on assets? A fire has destroyed a large percentage of the financial records of Dana'sDaily Deals. You have the task of piecing together information in orderto release a financial report. You have found the return on equity to be13.8 percent. Sales were $979,000, the total debt ratio was 0.42, and thetotal debt was $548,000. What is the return on assets?a. 6.92%b. 8.00%c. 8.45%d. 9.03%e. 9.29%

Step 1: Understand the ProblemWe need to calculate the return on assets (ROA) based on the given…

Answered: A fire has destroyed a large percentage…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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The total debt to total assets of the Monroe Company was.65. The total of Monroe's assets was $255,000. The amount of total debt is: O a. $392,703 O b. $165,750 Oc. $392,307 Od.$165,570 A Moving to another question will save this response. K Sho 2 Informative Top..docx acBook/
What is the return on assets for this accounting question?
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The bookkeeper for Adams's Country Music Bar left this incomplete balance sheet. Adams's working capital is $108,000 and its debt- to-assets ratio is 40 percent. Required Complete the balance sheet by supplying the missing amounts. Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term assets Building Less: Accumulated depreciation Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Notes payable Income tax payable Total current liabilities Long-term liabilities Mortgage payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 29,000 36,000 16,000 (40,000) 230,000 12,000 9,000 35,900 104,000
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You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
You are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53
The Inside Door has total debt of $208,600, total equity of $343,560, and a return on equity of 13.27 percent. What is the return on assets? Can you provide the formula?
Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholders iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC PLEASE SHOW WORKING
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Assume a company with the following balance sheet accounts:Account AmountCash $10,000Fixed assets _______ 60,000$70,000Account AmountLong-term loans $30,000M. Johnson, proprietor _______ 40,000$70,000You are concerned only about overstatements of owner’s equity. Set performance materialityfor the three relevant accounts such that the preliminary judgment about materialitydoes not exceed $5,000. Justify your answer
What is the income on these general accounting question?

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