Financial Accounting 5.8: Firm X and Firm Y have debt-total asset ratios of 40% and 30% and returns on total assets of 9% and 11%, respectively. What is the return on equity for Firm X and Firm Y?
Q: ??!!!
A: Net Profit = Sales * Profit MarginNet Profit = 5,200*8%Net Profit = $416 Total Assets = Total Debt +…
Q: Financial Accounting
A: Step 1: Formula Variable manufacturing overhead allocation rate = Estimated variable manufacturing…
Q: General Accounting Question please answer
A: Detailed explanation:Given:Monthly overhead costs $ 18,000Estimated production, 2000 unitsDirect…
Q: Need help this question
A: Explanation: The formula to calculate gross margin is as follows:Gross margin = Sales - Cost of…
Q: Give me Answer
A: Option a) Random recording suffices: This option is incorrect because recording events randomly…
Q: What is the capital turnover for the Rodney Division ?
A: Explanation of Capital Turnover:Capital Turnover is a financial ratio used to measure how…
Q: Non
A: 1. Given:- Debt-equity ratio = 1.10- Pre-tax cost of debt = 8.65%- Cost of equity = 13.4%- Tax rate…
Q: Please provide correct answer general Accounting question
A: Step 1: Analysis of information givenBeginning accounts receivables = $180,000Ending accounts…
Q: Willow manufacturing estimated it's manufacturing overhead
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a calculated rate used…
Q: The kitchen manager at Ruby Restaurant established portion control standards. Daily rice preparation…
A: Concept of Raw Material Usage:Raw material usage refers to the amount of unprocessed material, such…
Q: Need answer
A: Explanation of Beginning Cash Balance:The beginning cash balance refers to the amount of cash…
Q: Can you help me with accounting questions
A: The maximum allowable deduction under Section 179 in 2014 was 500,000, with a 2,000,000 phase-out…
Q: Summit Mechanical Co. Has a normal capacity of direct labour hours
A: Step 1:Calculate the total manufacturing overhead as follows:Total manufacturing overhead = Variable…
Q: Sub: financial accounting
A: Step 1: Calculation of net incomeNet income = Annual sales × Profit margin rateNet income = $5,200 ×…
Q: No AI ANSWER
A: The question requires the determination of the ROE or the Return on Equity. Return on equity (ROE)…
Q: What is the balance of current liabilities pn the firm's balance sheet ?
A: Step 1: Use the Accounting Equation:• Assets = Liabilities + EquityStep 2: Rearrange for Total…
Q: Financial Accounting Question need help
A: To calculate the change in Owners' Equity, we use the accounting equation: Assets = Liabilities +…
Q: What is the book value per share and earning per share on these financial accounting question?
A: To find the book value per share and earnings per share (EPS) for Ace Sporting Goods, we can use the…
Q: need help with this accounting question
A: Step 1: Definition of Average Tax RateThe average tax rate is the percentage of taxable income that…
Q: MCQ 4
A: d. Cause-and-effect chains determine proper entry timingEconomic impact sequencing focuses on the…
Q: Larkspur Manufacturing Company observed that, during its busiest month of 2022, maintenance costs…
A: Explanation of High Point: The high point represents the month with the maximum production volume in…
Q: What is the amount of a single interest payment that Orion Technologies will make on these financial…
A: To determine the amount of a single interest payment, you need to use the annual coupon rate and…
Q: Hello teacher please help me this question
A: Calculate the Predetermined Overhead RateThe predetermined overhead rate (POR) is based on estimated…
Q: At the beginning of the year, manufacturing overhead for the year was estimated to be $810,000. At…
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a calculation used to…
Q: None
A: To calculate the debt-equity ratio, we can use the DuPont identity for Return on Equity (ROE):…
Q: Babu Company completes job #928 which has a standard of 610 labor hours at a standard rate of $19.30…
A: The labor rate variance (LRV) measures the difference between the standard rate for labor and the…
Q: Answer please
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures the efficiency with…
Q: Greenfield Corp., which owes Oakwood Inc. $750,000 in notes payable with accrued interest of…
A: Step 1:Calculate the carrying amount as follows:Carrying amount = Original cost - Accumulated…
Q: What was net capital spending???
A: To calculate net capital spending, we use the following formula: Net Capital Spending = Ending Net…
Q: General Accounting
A: Step 1: Define Bond LiabilityBond liability represents the amount a company owes to bondholders,…
Q: Calculate the ratio of debt to equity??? General accounting
A: Explanation: The formula to calculate debt to equity ratio is as follows:Debt to equity ratio =…
Q: What amount of cash will be needed to pay back the note payable plus interest on July 1, 2022 on…
A: Step 1: Definition of Note Payable A note payable is a written promise to pay a specific amount of…
Q: General Accounting
A: Step 1: Define Fixed CostsFixed costs are costs that remain constant regardless of the production…
Q: Accurate answer
A: Step 1: Given that, Sales = $920,500 Profit margin = 7.25% Total assets = $815,300 debt ratio = 50%…
Q: What is the capital turnover for the Rodney Division?
A: Explanation of Sales Revenue: Sales revenue represents the total amount of money generated from…
Q: what is the amount of the new borrowing
A: To solve the problem of determining the net new borrowing for Mountain View Corp., we can use the…
Q: Question : 22
A: Step 1: Variable costs per unit Variable costs per unit = Total variable costs/VolumeVariable costs…
Q: Financial Accounting
A: Step 1: Define Labor Cost PercentageLabor Cost Percentage is a measure that evaluates the proportion…
Q: Need answer the financial accounting question
A: Step 1: Define Absorption CostingUnder absorption costing, all manufacturing costs, including…
Q: Hello tutor give answer the financial accounting question
A: Explanation: Following data is given in the question:Wages = $60,000; Interest from savings account…
Q: During June, Martha's Crafts spent $900 to buy 30 handmade vases and sold 5 of them for $80 each.…
A: Explanation of Cost of Goods Sold (COGS): Cost of goods sold represents the direct cost of items…
Q: Please answer the financial accounting question not use ai
A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate is a calculated cost used…
Q: Correct answer please
A: Explanation of High-Low Method:The High-Low Method is a cost estimation technique used to separate…
Q: Need help with this financial accounting question
A: Step 1: Define Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is a rate used to…
Q: General accounting question please solve
A: If you find this solution helpful, please consider giving it a positive rating. Your feedback is…
Q: Hy expert give me correct answer
A: Step 1: Definition of Absorption CostingAbsorption costing assigns all manufacturing costs,…
Q: Right Answer
A: Step 1: Formula Increase in net income = (Special selling price per unit - Variable costs per unit)…
Q: ?? Financial accounting question
A: Step 1: Introduction to time value of moneyTime value of money is a financial concept which is used…
Q: Ans
A: Detailed explanation: Measurement attribute selection directly impacts reporting quality since…
Q: What is the contribution margin per unit and contribution margin ratio ?
A: Explanation of Contribution Margin per Unit:Contribution Margin per Unit is the difference between…
Financial accounting 5.8:Firm X and Firm Y
Step by step
Solved in 2 steps
- Company has return on assets 12.4% and debt-equity ratio is 0.25. What is ROE? Select one: a.35.43% b.9.18% c.9.3% d.15.5%Firm A and Firm B have debt/total asset ratios of 33 percent and 23 percent and returns on total assets of 7 percent and 10 percent, respectively. What is the return on equity for each firm? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Firm A return on equity Firm B return on equityNeed help please provide Solutions with explanation