ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.35 : A voluntary accountant is performing Du Pont Analysis for a charitable engineering organization. References for 3-step Du Pont formula are : (ROE) = (Net Income $) / (Equity $), where ROE is Return On Equity. (ROS) = (Net Income $) / (Sales $), where ROS is Return On Sales. (Asset Turnover) = (Sales $) / (Assets $). (Leverage) = (Assets $) / (Equity $). From the balance sheet and income statement, the company has Assets of $3753.19 this year and $3216.86 last year. Sales for this year is $2292.34. Let ROE = 0.37 and ROS = 0.21. (a) Calculate the Asset Turnover of the organization. (b) Find the value of the organizational Leverage. (c) Calculate the Net Income $ of the organization.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.35 : (a) (Assets $) = [ (Assets of this year) + (Assets of last year) ] / 2 = ($3753.19 + $3216.86) / 2 = $3485.025. Asset Turnover = (Sales $) / (Assets $) = ($2292.34) / ($3485.025) = 0.658. (b) From 3-step Du Pont formula, (Net Income $) = (ROE) (Equity $) = (ROS) (Sales $). Then (Equity $) = (ROS) (Sales $) / (ROE) = (0.21) ($2292.34) / (0.37) = $1301.0578. From answer (a), (Assets $) = $3485.025. (Leverage) = (Assets $) / (Equity $) = ($3485.025) / ($1301.0578) = 2.6786. (c) From 3-step Du Pont formula, (Net Income $) = (ROS) (Sales $) = (0.21) ($2292.34) = $481.3914. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Explain how instrument air is continually supplied in process plant?
Heat transfer: In a steady state one dimensional conduction with no heat generation, the differential equation is d / dx (k dT / dx) = 0. Prove that T(x) = ax b, where k, a and b are constants. (b) At x = 0, T = c and at x = L, T = d. Prove that T(x) = (d - c) x / L c for boundary conditions.
The job profile as a Service Engineer?
What's the difference between superphosphate and triple super phosphate fertilizer?
how can we calculate reflux ratio? what is difference between internal reflux and external reflux?
Question 10 - In the US (United States), one barrel is equal to 42 US gallons and equivalent to 0.15898 cubic metres. One British barrel is equal to 36 Imperial gallons and equivalent to 0.163659 cubic metres. If an oil refinery in England sells 42 Imperial gallons of crude oil to a company in US, how much US gallons of crude oils has been sold?
QUANTUM COMPUTING - EXAMPLE 32.1 : In quantum computing, let the amplitude A = a | 0 > + b | 1 >, | a | | a | + | b | | b | = 1. Find the values of b if A = 0.8 | 0 > + b | 1 >.
Question 54 - There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, betwen 1 and 2, that will be more profitable after 4 years?
For amonia manufacturing process if pressure, temperature would be increase over optimum level what would be happen?And what steps should be taken?
NATURAL GAS ENGINEERING - QUESTION 26.2 : (a) The Hyperion sewage plant in Los Angeles burns 8 million cubic feet of natural gas per day to generate power in United States of America. If 1 metre = 3.28084 feet, then how many cubic metres of such gas is burnt per hour? (b) A reservoir of natural gas produces 50 mole % methane and 50 mole % ethane. At zero degree Celsius and one atmosphere, the density of methane gas is 0.716 g / L and the density of ethane gas is 1.3562 mg / (cubic cm). The molar mass of methane is 16.04 g / mol and molar mass of ethane is 30.07 g / mol. (i) Find the mass % of methane and ethane in the natural gas. (ii) Find the average density of the natural gas mixture in the reservoir at zero degree Celsius and one atmosphere, by assuming that the gases are ideal where final volume of the gas mixture is the sum of volume of the individual gases at constant temperature and pressure. (iii) Find the average density of the natural gas mixture in the reservoir at zero degree Celsius and one atmosphere, by assuming that the final mass of the gas mixture is the sum of mass of the individual gases. Assume the gases are ideal where mole % = volume % at constant pressure and temperature.
Define "good" cooling tower water?
Question 67 – In order to predict the wastewater production, the population number has to be understood. The population data is : 72000 (for year 1961 or P-1961), 85000 (for year 1971 or P-1971), 110500 (for year 1981 or P-1981). (a) Find the average population increase, or [ (P-1981 - P-1971) + (P-1971 - P-1961) ] / 2. (b) Find the average percentage population increase, or [ (P-1981 - P-1971) / P-1971 + (P-1971 - P-1961) / P-1961 ] / (2) X 100. (c) Find the incremental increase or P-1981 - 2 (P-1971) + P-1961. (d) Let Po = P-1981. After 2 decades or n = 2, the population is P-2001. By using arithmetical increase method, find P-2001 = Po + n (Answer for a). (e) By using incremental increase method, find P-2001 = (Answer of d) + n (n + 1) (Answer of c) / 2. (f) By using geometrical increase method, find P-2001 = Po [ 1 + (Answer of b) / 100 ] ^ n where ^ is power sign, or 1 ^ 2 = 1 x 1 = 1. (g) If the actual P-2001 = 184000, which method of estimation is more accurate, based on your answer in (d), (e) and (f)?
Civil Engineering (5086)
Mechanical Engineering (4456)
Electrical Engineering (16639)
Electronics Communications (3918)
Chemical Engineering (1095)
Aeronautical Engineering (239)
Bio Engineering (96)
Metallurgy (361)
Industrial Engineering (259)
Instrumentation (3014)
Automobile Engineering (332)
Mechatronics Engineering (97)
Marine Engineering (124)
Power Plant Engineering (172)
Textile Engineering (575)
Production Engineering (25)
Satellite Systems Engineering (106)
Engineering AllOther (1379)