Calculate daycos asset turnover ratio

Assignment Help Cost Accounting
Reference no: EM13523173

The Dayco Manufacturing Company had the following financial statement results for last year. Net sales were $1.2 million with net income of $90,000. Total assets at year end amounted to $900,000.

a. Calculate Dayco's asset turnover ratio and its profit margin.

b. Show how the two ratios in Part (a) can be used to determine Dayco's rate of return on assets.

c. Dayco operates industry average ratios are these: Return on assets: 11 percent; Asset turnover: 2.5 times; Net profit margin: 3.6 percent. Compare Dayco's performance against the industry averages.

Reference no: EM13523173

Questions Cloud

Prepare journal entry to recognize the income tax benefit : Prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option.
Find the cars speed and the trains acceleration : A 108m long train starts from rest (at t=0) and accelerates uniformly. At the same time (at t=0), a car moving with constant speed in the same direction reaches the back end of the train. find the cars speed and the trains acceleration
How many rooms do they have to sell each month : Nixon's Bed and Breakfast has a fixed cost of $5000 per month and the revenue they receive from each booked room is $200. The variable cost per room is $75. How many rooms do they have to sell each month to break even
Determine the time the ball is in the air : Julie throws a ball to her friend Sarah. The ball leaves Julie's hand a distance 1.5 meters above the ground with an initial speed of 19.0 m/s at an angle 48.0 degrees; What is the time the ball is in the air
Calculate daycos asset turnover ratio : Calculate Daycos asset turnover ratio and its profit margin and show how the two ratios in Part (a) can be used to determine Dayco's rate of return on assets.
Explain the compatibilists account of moral responsibility : What does it mean to say that a person is morally responsible for a choice or action? Explain the Hard Determinist’s claim that although we are never morally responsible for our choices and actions, our practices of praise and blame, reward and pu..
Determine markup necessary to make desired return : Determine the markup necessary to make the desired return on investment based on the information
What is the secondary ratio : There are no results for For a transformer with Vp=120Vrms, and turn ratio of 8 to 1 with a RL of 500. What is the secondary ratio
Project expected return risk : Project Expected Return Risk

Reviews

Write a Review

Cost Accounting Questions & Answers

  What is the amount of unrestricted cash and investments

What is the amount of unrestricted Cash and Investments at 9/30/15 and what is the amount restricted Cash and Investments at 9/30/15?

  Manipulation of the valuation allowance

What do you think may have been the underlying reason for Nortels behavior relative to the manipulation of the valuation allowance?

  Design the adjusted trial balance of eastwood company

The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis.

  Evaluate incremental revenue associated

What is the incremental income associated with accepting the special order? Evaluate the incremental revenue associated with accepting the special order?

  What variable cost is as defined for activity-based-costing

What variable cost is as defined for Activity-Based-Costing and what direct cost is as defined for Activity-Based-Costing

  Compute break-even point in dollar using contribution margin

Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $9 per unit.

  Accounting for product costs and period costs

Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs - explain the basic difference in accounting for product costs and period costs.

  Find the rate of annual depreciation

The total cost of a fleet of lorries is $ 180,00 and theresidual value after five years is $20,00. Using the diminishing balance method find the rate of annualdepreciation?

  Current assets section of the balance sheet

Prepare the current assets section of the balance sheet and compute the predetermined overhead rate AND the amount of applied manufacturing overhead

  Calculate the number of units to be produced

Calculate the number of units to be produced in each of the months of August, September, and October.

  Question bemidji manufacturing manufactures laptop

question bemidji manufacturing manufactures laptop computers in three departments assembly packaging and testing. prior

  Total factory overhead costs

Total factory overhead costs

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd