Which of the following would not help to increase the return on assets for the retail segment in the Cooper Processing Case Increase prices for the retail segment Reduce average inventory for the retail segment Sale and leaseback of the packaging equipment Cannot be determined
Increase prices for the retail segment would not help to increase the return on assets for the retail segment in the Cooper Processing Case because an increase in price results to iincrease in days' sales in inventory, which means that the company is holding inventory for a longer period, which increases total assets, causing a decrease in return on assets.
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Which of the following would not help to increase the return on assets for the retail...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use of financial leverage c. return on shareholders investment d. profitability of sales e. cost effectiveness of its operating activities 2. The Current ratio of a firm is 1.3, If the firm uses cash to pay short-term notes-payable, would the transaction increase or decrease the current ratio and Return on Asset ratio? 3. Which of the following could cause return on equity to increase, all...
Which of the following transactions would cause an increase in both the assets and liabilities of a company? Multiple Choice Pay for inventory purchased 90 days ago. Purchase of a building by issuing a note payable. Paying for the current month's rent. Services received on account
please help 9. The DuPont method return on assets uses two compone method return on assets uses two component ratios. What are they? a. Inventory turnover x gross profit margin b. Profit margin x asset turnover c. Return on equity x dividend payout D. Net profit margin x total liability turnover e. Return on investment x total investment turnover 10. Which of the following is not a type of operating asset? a. Treasury stock b. Cash c. Inventory d. Land...
In the statement of cash flows, which of the following would increase reported cash flows from investing activities? Select one: a. Increase in intangible assets due to an acquisition for cash. b. Increase in mortgage payable due to the purchase of land. c. Proceeds from the sale of equity investments accounted for at fair value. d. Loss on an insurance settlement for equipment damaged by fire.
Return on equity can increase as a result of an increase in which of the following ratios? Net income/ sales Sales/ total assets Total assets/ equity All of these will have a positive influence on the ROE.
! Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO10-1] [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: $ 790,000 Sales Net operating income Average operating assets 18,960...
which of the following would not be included in operating assets in return on investment calculations?? A cash B accounts receivable C equipments D factory building rented to another company
Which of the following would increase assets and increase liabilities? Multiple Choice O Pay dividends to stockholders. Pay dividends to stockholders. Receive a utility bill for the current month. Plan to pay bill beginning of next month. Purchase office supplies on account. o oo Provide services to customers on account.
Which of the following would NOT adversely affect return on equity?! Select one: a. an increase in company income tax b. transfers from retained profits to general reserve C. reduced margins in an aggressive market place d. none of the above; all would adversely affect return on equity
answer with details or by law increase in return on investment (ROI), assuming Which of the following will not result in a other factors remain the same? A. A reduction in expenses. B. An increase in net operating income C. An increase in operating assets D. An increase in sales. 4. The Northern Division of the Smith Come last year. If the minimum required rate of return Company had average operating assets totaling $150,000 a Northem was $20,000, then the...