A return on assets of 9% means that a company is earning:
a. a $9 return on every $100 of
cost of goods sold.
b. a $9 return on every $100 of liabilities.
c. a $9 return on every $100 of total assets.
d. a $9 return on every $100 of revenue.
Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $243,000, and the Allowance for Doubtful Accounts has a credit balance of $4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be:
Which of the following statements is false?
a. All these statements are true.
b. The Allowance for Doubtful Accounts reduces Accounts Receivables to their net realizable value.
c. A bad debt expense reduces net income.
d. The percentage-of-receivables method may use either an overall rate or a different rate for each age category.
The following information applies to Johnson Company for 2018:
- Stock market price, December 31, 2018: $110
- Common shares outstanding, December 31, 2018: 350,000
- Net Income for year 2018: $1,300,000
- Retained Earnings, January 1, 2018: $4,090,000
On December 31, 2018, Johnson decides to pay the maximum amount it can in dividends to its shareholders. What is the dividend yield ratio?
d. None of the these