# 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

b. \$1.82m

Explanation:

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.

## Related Questions

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

Explanation:

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.

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.

### Explanation:

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:

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What is persecution

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

Explanation:

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

137,000

Explanation:

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

239800-48000=2F-0.6F

191800=1.4F

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?

\$1,085,000

Explanation:

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.

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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

Explanation:

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.

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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

Explanation:

given data

Year    0            1           2           3

cash    -\$500  \$150   \$200   \$300

to find out

What is the project's payback

solution

Year        Cash flows   Cumulative Cash flows

0                 500             500

1                  150              350

2                 200             150

3                 300              150

so

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

so

Payback period =

Payback period = 2.5 years

The payback period for the project is approximately 2.75 years.

### Explanation:

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.