Donnelly Industries has a return on sales ratio of 5 percent and a return on assets ratio
Question:
Donnelly Industries has a return on sales ratio of 5 percent and a return on assets ratio of 20 percent. For each of these transactions or changes, determine the effect of the transaction on the return on sales and return on assets. Consider each event by itself and fill in the blanks with I for increase, D for decrease, and NC for no change.
Transcribed Image Text:
A. Pay long-term liability. C. B. Purchase equipment for cash. Increase gross margin percentage. Increase average inventory by purchasing on open account. D. E. Decrease operating expenses as a percentage of sales. F. Issue additional capital stock for cash. G. Purchase buildings with cash down payment and issue a mortgage payable for the balance. Return on Sales Return on Assets
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Event Return on Sales Return on Assets A Pay longterm liability NC NC B Purchase equipment for cash NC D C Increase gross margin percentage I I D Incr...View the full answer
Answered By
Aketch Cindy Sunday
I am a certified tutor with over two years of experience tutoring . I have a passion for helping students learn and grow, and I firmly believe that every student has the potential to be successful. I have a wide range of experience working with students of all ages and abilities, and I am confident that I can help students succeed in school.
I have experience working with students who have a wide range of abilities. I have also worked with gifted and talented students, and I am familiar with a variety of enrichment and acceleration strategies.
I am a patient and supportive tutor who is dedicated to helping my students reach their full potential. Thank you for your time and consideration.
0.00
0 Reviews
10+ Question Solved
Related Book For
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines
Question Posted:
Students also viewed these Business questions
-
Nagell Industries has a return on sales ratio of 5 percent and a return on assets ratio of 20 percent. For each of these transactions or changes, determine the effect of the transaction on the return...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The jet plane starts from rest at s = 0 and is subjected to the acceleration shown. Determine the speed of the plane when it has traveled 1000 ft. Also, how much time is required for it to travel...
-
In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive-NPV project is accepted? If a negative-NPV project is...
-
Sven's Cookhouse is a popular restaurant located on Lake Union in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to...
-
Following are errors, frauds, or other circumstances that an auditor might encounter as a result of applying audit tests to long-term debt as of the balance sheet date: a. Detailed long-term debt...
-
Bobbie's Bagel Shop sells only coffee and bagels. Bobbie estimates that every time she sells one bagel, she sells four cups of coffee. The budgeted cost information for Bobbie's products for 2011...
-
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.0% for Project A and 9.25% for Project B. Which project given the cash...
-
Find the discrete Fourier coefficients, (ii) The low frequency trigonometric interpolant, for the following functions using the indicated number of sample points: (a) sin x, n = 4 (b) |x - |, n = 6...
-
Refer to PepsiCo Corporation (www.pepsico.com), and find the most recent annual report. Required: A. Prepare a vertical analysis. B. Prepare a horizontal analysis. C. Comment on any trends you see.
-
Refer to P20.6 and prepare a complete ratio analysis and comment on anything unusual you find. Data from P20.6 Refer to Walt Disney Company (www.disney.com), and find the most recent annual report....
-
Define economics, describe economizing behavior, and give examples of situations when people use economizing behavior and when they do not.
-
Let where b b is an unknown constant. This system is (a) observable for all values of b b (b) unobservable for all values of b b (c) observable for all non-zero values of b b (d) unobservable for all...
-
If the price of fish increases, then there is a change in: a. the supply of fish b. the quantity supplied of fish c. the amount of fish sold d. cannot tell from the information given
-
In Problems 33-38, graph each function and then classify as a linear, quadratic, exponential, logarithmic, or probability function. \(f(x)=2 x^{2}\)
-
The state and output equations of a system are The systems is (a) Neither state controllable nor output controllable (b) State controllable but not output controllable (c) Output controllable but not...
-
List the items (e.g., check numbers, transaction dates, and individual amounts) and totals of each category of fraud.
-
Jeff Ryan completed an Accounting I course and was recently hired as the bookkeeper of Spring Co. The special journals shown on page 306 have not been posted, nor are "Dr." and "Cr." used on the...
-
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
-
The balance in Tahoma Companys raw materials inventory account was $150,000 at the beginning of June and $135,000 at the end of June. Raw materials purchased during the month totaled $50,000. Tahoma...
-
The balance in Amber Companys work-in-process inventory account was $400,000 at the beginning of September and $320,000 at the end of September. Manufacturing costs for the month follow. Required:...
-
Boulder Products, Inc., had the following activity for the month of October. Required: Prepare an income statement for the month of October. Sales revenue Selling expenses General and administrative...
-
An ideal monatomic gas begins in an initial state, i, at P and V. It then undergoes a process with a final state at 3.5 P and V as shown. What is the heat added to the gas in the process in terms of...
-
A marketing professor of a certain university studied how people attempt to influence the choices of others by offering undesirable alternatives. In one phase of the study, the researcher had each of...
-
Sam went to his doctor because he was feeling a pain in his chest. His doctor sent him to a cardiologist who advised Sam that, if he did not have a heart bypass operation, it was likely that he would...
Study smarter with the SolutionInn App