Establishing a goal of having a net profit

Assignment Help Accounting Basics
Reference no: EM13258199

You invested $5,000 in the Cog Corporationand $5,000 in the Gear Corporation. Both of these corporations have $100 million in total assets. The Cog Corporation had a net profit of $5 million and the Gear Corporationhad a net profit of $10 million. You read their annual reports and both companies had established a goal of having a net profit equal to 15% of total assets:

(a) Cog is more effective than Gear.

(b) Cog is more efficient than Gear.

(c) Gear is more effective than Cog.

(d) Gear is more efficient than Cog.

(e) Cannot tell without more information.

Reference no: EM13258199

Questions Cloud

Define the molar solubility of magnesium carbonate : The molar solubility of magnesium carbonate is 1.8 ? 10-4 mol/L. What is Ksp for this compound
Determine the absolute pressure and density at vail pass : The maximum power output capability of an engine decreases with altitude because the air density and hence the mass flow rate of air decreases.
Determine the angle of incidence : The angle of refraction of a ray of light traveling through a piece of fused glass quartz is 29°. Find the angle of incidence
Burden of unlimited liability : Which of the following business has the burden of unlimited liability?
Establishing a goal of having a net profit : You read their annual reports and both companies had established a goal of having a net profit equal to 15% of total assets:
Why would the fourth amendment apply : The Fourth Amendment speaks of "people" being secure in their "persons, houses, papers, and effects." Why would the Fourth amendment apply to a business, which is not in a "house"?
What is the ethical dilemma : What is the ethical dilemma and what is your value and ethical position related to the case? Include discussion of theory and principles on which your position is based.
Benefit of limited liability : Which of the following enjoys the benefit of limited liability?
What is the current bond price : Ninja Co. issued 15-year bonds a year ago at a coupon rate of 8.1 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.4 percent, what is the current bond price?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Dilemma in an ethical manner

Your colleague is infatuated with a woman whom you know to be promiscuous. Since this colleague is also a close friend, you are concerned about his/her welfare.

  Integrating case 5-23 balance sheet

integrating Case 5-23 Balance Sheet

  Prepare the entry to record any unrealized holding

Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate has declined; the fair ..

  Gains and losses on sale of assets

Which of the following statements is true? I. The entire amount of realized gains and losses from the sale of assets are recognized for tax purposes.

  Maintaining accurate records in regard to income

Could you explain the importance of maintaining accurate records in regard to income, expenses, profit, budgeting, and forecasting for a restaurant?

  Expected value of information

Jeffrey Mogul is a Hollywood film producer and he is currently evaluating a script by new screenwriter and director, Betty Jo Thurston. Jeffrey knows that the probability of a film by a new director being a success is about .10 and the probability..

  Accumulated straight-line depreciation and book value

An asset purchased by A Corporation for $15,000 ON 01/01/1997 also incurred freight charges of $200 and installation cost of $1,000.The asset had a life expectancy of eight years and a salvage value of $2,800.

  What is the amount of her deductible charitable contribution

for the current year sheila jones had adjusted gross income of $100,000 during the year she contributed $6,000 to her church and a additional $3,000 to qualified charities.

  Determining net operating income

Yore Corporation has provided the following data for the month of June. The beginning balance in the finished goods inventory account was $35,000 and the ending balance was $26,000. Sales totaled $220,000.

  Determine the inventories direct labor costs

Rockhampton, Inc. app|ies factory overhead ba$ed on direct lab0r c0sts. The company 1ncurred the following costs during 2O11: direct materials costs, $650000.

  Validate why revenue is often recognized as earned

Create a situation or scenario in which it may be appropriate to recognize revenue as the productive activity takes place. State whether or not there are any other times appropriate for recognizing revenue. Provide a rationale with your response.

  What is realized and recognized gain on the second asset

Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and a FMV of $50,000. The second asset has an adjusted basis of $70,000 and a FMV of $150,000. The FMV of the stock receiv..

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