Last year, DJ's Soda Fountains, Inc. reported an ROE = 27 percent. The firm's debt ratio was 50 percent, sales were $9 million, and the capital intensity ratio was 1.5 times. What is the net income for DJ's last year? Multiple Choice a. $1.22m b. $1.82m c. $2.43m d. $2.84m


Answer 1


b. $1.82m


Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.

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AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount interest and a compensating balance of 2 percent.a. How much will AIE have to borrow?b. What is the effective rate on this loan?c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?
Assignment I1. On March 1, 2020, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2020.a) Chart of accounts Universal GarageChart of Accounts100 ASSETS 110 CURRENT ASSETS 111 Cash 112 Accounts Receivable 114 Supplies 116 Prepaid Rent 117 Prepaid Insurance 120 PLANT ASSETS 121 Land 123 Machinery 123.1 Accumulated Depreciation-Machinery 125 Office Equipment 0.1 Accumulated Depreciation-Office Equipment200 LIABILITIES 210 CURRENT LIABILITIES 211 Account Payable 213 Salaries Payable 216 Interest Payable 220 NON-CURRENT LIABILITIES 221 Long-term Bank Loan 300 OWNER'S EQUITY 301 Tahir, Capital 302 Tahir, Drawings 303 Incomes Summary 400 REVENUES 401 Fees Earned 410 Other Income 500 EXPENSES 501 Salary Expenses 502 Supplies Expenses 503 Rent Expenses 504 Insurance Expenses 505 Depreciation Expenses 506 Interest Expenses 510 Miscellaneous Expenses b) TransactionsMar 1 Received the following assets from its owner, Tahir: Cash....................................... Br, 8,300 Supplies ................................. 2,000 Office Equipment................... 10,000 2 Borrowed Br 5,000 from Dashen Bank 3 Paid Br 1,800 for rent on a building leased for business purposes 3 Purchased welding and other repair machinery for Br 3,600 cash 4 Paid Br 200 for a radio advertisement 8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 13 Paid weekly salary Br 1,200 16 Received Br 4,400 from services rendered on cash 20 Paid weekly salary Br 1,200 20 Received Br500 royalties for idle repair machinery it leased to other businesses 20 Delivered service on credit, Br 6,00021 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers 23 Received Br 5,000 additional cash investment from its owner 24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 26 Purchased supplies for Br 800 cash 27 Paid Br 100 for customer entertainment and other items27 Paid weekly salary Br 1,200 31 Paid Br 500 for electricity and other utilities consumed during the month 31 Received Br 4,200 cash from credit customers 31 Paid Tahir Br 1,800 for personal uses Required: a) Journalize the above transactions in a two-column journal b) Post the journal entries to “T” accounts c) Prepare and complete a worksheet based on the following additional information i. Cost of supplies remained unconsumed on Mar 31 is Br 900 ii. The amount paid on Mar 3 is for a three-month rent iii. The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively iv. Universal Garage usually pays Br 1,200 for employee's salary every saturday for a six-day work week ended on that day v. Interest on bank loan accrued but not paid on March 31 total Br 100 d) Prepare financial statements for the month e) Journalize and post adjusting entries f) Journalize and post closing entries g) Prepare post-closing trial balance
The first step in the project control process for measuring and evaluating project performance is to ch13 Select one: a. Determine the project objectives. b. Determine the project deliverables. c. Analyze the project budget. d. Set a baseline plan e. Review the project priority matrix.

Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as . True or False: Short-term fluctuations in real GDP are irregular and unpredictable. True False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950



Consider the following explanations


Q1.) the short run fluctuations in the real GDp is known as the business cycles.

Q2.)yes , it is true that Short-term fluctuations in real GDP are irregular and unpredictable.

Q3.) A decrease in real GDPcoincide with declining personal income, and falling corporate profits. As incomes decline consumer spending also decline on retail goods and services and on durable goods, such asautomobiles. Households also contribute to declining investment expenditures by purchasing fewernew homes. As households spend less on products, firms cut back on industrial production and curbinvestment expenditures on physical capital.The unemployment rate tends to rise during periods of falling real GDP as firms cut back on productionand lay off workers. The unemployment rate tends to fall during economic expansions as firms expands production and hire additional workers.

Final answer:

Short-term fluctuations in real GDP are indeed irregular and unpredictable. In 1950, an increasing real GDP in the U.S. economy signifies a period of economic growth.


Short-term fluctuations in real GDP are indeed irregular and unpredictable. While real GDP tends to trend upward over time, it experiences ups and downs in the short run, which we call recessions.

In the context of the U.S. economy in 1950, if there was an increasing real GDP, it means that the economy was growing. This growth could be attributed to various factors such as increased consumer spending, business investment, government spending, or exports.

It could indicate a period of economic expansion with rising employment and incomes.

Learn more about Short-term fluctuations in real GDP and increasing real GDP in the U.S. economy here:


What is persecution



: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.


Hostility and ill treatment especially because of race or political or religious beliefs; oppression

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in units) 94,000 ? 80,000 Budgeted raw materials purchases (in pounds) 213,800 239,800 295,800 Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 26,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: rev: 10_27_2016_QC_CS-67319 191,800 units 48,000 units 96,000 units 137,000 units





                                Jan          Feb              March

Units produced     94000                         80000

Raw materials         26,000

Raw materials       213800    239800   295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F



F= 191800/1.4 =137000

The following information relates to Jay Co.’s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $650,000 Credit sales for 2016 2,700,000 Sales returns during 2016 75,000 Accounts receivable written off during 2016 40,000 Collections from customers during 2016 2,150,000 Allowance for uncollectible accounts balance, 12/31/2016 110,000 What amount should Jay report for accounts receivable, before allowances, at December 31, 2016?





The computation of the ending account receivable balance is shown below:

= Accounts receivable balance, 1/1/2016 + credit sales - sales returns - written off amount - Collections from customers

= $650,000 + $2,700,000 - $75,000 - $40,000 - $2,150,000

= $1,085,000

Since we have to find out the account receivable balance before allowances so we do not considered it.


Expenses include all of the following except: Multiple Choice making a payment on account. using supplies. paying for electricity used during the current period. paying wages for production workers for work performed during the current period.



using supplies


An expense can be described as cost incurred by a company in a bid to earn revenue.

When supplies are used no explicit cost is incurred in the process so it doesn't qualify as an expense.

I hope my answer helps you

Expenses include making a payment on account, using supplies, and paying wages for production workers for work performed during the current period.

What is not considered an expense?

However, paying for electricity used during the current period is not considered an expense. Instead, it is categorized as an operating cost or utility cost.

Expenses typically refer to the costs incurred by a business in its day-to-day operations, such as purchasing inventory, paying wages, or using supplies.

Read more about Expenses here:


Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$500 $150 $200 $300 2.03 years 2.25 years 2.50 years 2.75 years 3.03 years



Payback period = 2.5 years


given data

Year    0            1           2           3

cash    -$500  $150   $200   $300

to find out

What is the project's payback


Year        Cash flows   Cumulative Cash flows

0                 500             500

1                  150              350

2                 200             150

3                 300              150


Payback period = Last period with a negative cumulative cash flow +(Absolute value of cumulative cash flows at that period ÷ Cash flow after that period)      .........................1

put here value we get


Payback period = 2+ (150)/(300)    

Payback period = 2.5 years

Final answer:

The payback period for the project is approximately 2.75 years.


The payback period is a financial metric used to assess the time it takes for an investment or project to generate enough cash flows to recover the initial investment cost. It's a simple tool for evaluating the risk and return of an investment, with shorter payback periods generally indicating lower risk. The payback period is the amount of time it takes to recover the initial investment in a project.

To calculate the payback period, we sum the cash flows until we reach or surpass the initial investment.

In this case, the initial investment is $500, and the cash flows are: $150, $200, and $300 in years 1, 2, and 3 respectively.

By adding the cash flows together, we find that the project's payback is 2 years and 25% of year 3, which is approximately 2.75 years.

Learn more about payback period here:


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