Financial Accounting: Information for Decisions
Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158809
Author: Wild, John
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 13, Problem 12DQ
Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income  ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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Chapter 21 Homework i Saved You received partial credit in the previous attempt. 00 8 Exercise 21-3 (Algo) Preparing flexible budgets LO P1 1.25 points 04:49:00 Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget eBook + Hint Ask Print Sales (12,000 units x $216 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries. Depreciation-Office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2. Compute total fixed costs. 2,592,000 288,000 528,000 336,000 88,000 84,000 192,000 138,000 108,000 78,000 88,000 664,000 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units. 5 References Mc Graw Hill Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare flexible budget at activity levels of 10,000 units and 14,000 units. Sales Variable costs Direct materials Direct labor Indirect…
what is company net income ?
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