1. 2. 3. ROA (return on assets) is measured by Earnings before interest & tax/ Average total...
Fantastic news! We've Found the answer you've been seeking!
Question:
1.
2.
3.
Transcribed Image Text:
ROA (return on assets) is measured by Earnings before interest & tax/ Average total assets Assume ROA is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The receipt of proceeds from a 5-year reducing balance bank loan [ Select ] ROA (return on assets) is measured by Earnings before interest & tax/ Average total assets Assume ROA is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The receipt of proceeds from a 5-year reducing balance bank loan [ Select ]
Expert Answer:
Answer rating: 100% (QA)
Answer As Cash is received it will increase average total assets therefore deno... View the full answer
Posted Date:
Students also viewed these accounting questions
-
For the systems shown below, find mobility and speed relationships.1) For figure 1, gear #2 and ring #4 rotate about pin A. Find mobility and giveexpressions gear #3s and rings angular velocities.2)...
-
That 1 - 1 / 2 + 1 / 3 - 1 / 4 + ... - 1 / 2( = 1 + 1 / 2 + 1 / 3 + ... + 1 / 2( - (1 + 1 / 2 + 1 / 3 + ... + 1 / n) = 1 / n + 1 + 1 / n + 2 + ... + 1 / 2n Recognize the latter expression as a...
-
Maximum Pension Fund is attempting to manage one of the bond portfolios under its management. The fund has identified three bonds that have five-year maturities and trade at a yield to maturity of 9...
-
Why would an organization use outplacement strategies before downsizing? Outplacing employees helps former employees develop new skill sets. Outplacement strategies are a means of eliminating problem...
-
The following information for Pet Palace, a large retail store that sells pet-related merchandise, was recorded for the first quarter. The store tracks merchandise according to product type. The...
-
Do service-sector companies have inventoriable costs? Explain.
-
Lester Corporation has 30,000 shares of \(\$ 1\) par value common stock outstanding. The company has \(\$ 250,000\) of retained earnings. At year-end, the company declares a cash dividend of \(\$...
-
The three following diagrams show the supply of luxury ocean liners at three different levels of aggregationthe entire world, a particular country, and a particular firm. a. Which diagram shows the...
-
Please compare the duration estimation based on the following two approaches. Statistical theory based approach expects you to follow the standard PERT solution process to identify the mean and...
-
A 200-pound steer can be sustained on a diet calling for various proportions of grass and grain. These combinations are shown in the table. Pounds of Grass Pounds of Grain 50 ..........80 56...
-
Which is true when trying to get a loan? 1) The higher the risk, the lower the rate 2) The higher the risk, the higher the rate 3) The lower the risk, the higher the rate 4) The risk and rate are...
-
Please refer to the Income Statement and Balance Sheet above and perform the following. RANDALL DEPARTMENT STORES, INC. Income Statement compared with Industry Average Year Ended December 31, 2020...
-
What is the simplest way to solve this problem in Python from Coderbyte? Please follow this format: defSearchingChallenge(strArr): # keep this function call here...
-
An overhead absorption rate of $ 1 2 per direct labour hour was established based on a budget of 2 , 1 0 0 hours. Actual direct labour hours worked were 2 , 1 8 0 and actual overhead expenditure was...
-
To estimate the value of Paul's investment at maturity, calculate the number of years until Paul will go to university, and use compound interest to calculate the value of Paul's investment at that...
-
Sharkers Company supplied you with the following information: Share Dividend expected next year (R) Dividend Growth Rate (%) Required Return (%) A 1.10 9 12 B 3.80 6 11 C 0.80 13 17 D 2.60 12 16 E...
-
Use a tangent plane to approximate the value of the following function at the point (-2.9, -1.1). Give your answer accurate to 4 decimal places. f(x, y) V26 2 x - y Check Answer
-
In Exercises 105108, evaluate each expression without using a calculator. log(ln e)
-
MPS Corporation manufactures and sells holiday towels. The number and unit price of the towels increase substantially during the third quarter. An accounting clerk has prepared the following sales...
-
Financial statement analysis is a process whereby the basic financial statements are reviewed and evaluated to assess a firms financial health and/or performance. Calculating financial ratios is an...
-
Many corporations finance at least a part of their operations and asset purchases using debt, principally because the cost of debt financing is cheaper than equity financing. Moreover, some firms are...
Study smarter with the SolutionInn App