Answer:
In order to get maximum returns from this investment, Howard Schultz should do the following-
a) Design the product of La Boulange so that they are included in the menu of starbucks so that people preferring to have La Boulange products can also be included in the customer base of starbucks.
b) La Boulange itself has a brand identity and was quite popular among people, hence instead of dissolving its identity, individual outlets must be run under the brand starbucks to maximize the annual turnover.
Explanation:
In order to get maximum returns from this investment, Howard Schultz should do the following-
a) Design the product of La Boulange so that they are included in the menu of starbucks so that people preferring to have La Boulange products can also be included in the customer base of starbucks.
b) La Boulange itself has a brand identity and was quite popular among people, hence instead of dissolving its identity, individual outlets must be run under the brand starbucks to maximize the annual turnover.
"All three levels are required to run an organization or a business smoothy"Justify the statement.
Answer:
"All three levels are required to run an organization or a business " according to my point of view it is true without anyone levels (sector) business or organization not imagine to run
Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $12.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:
Direct labor hours used 2,230
Direct labor cost $34,000
Units of ZX40 manufactured 4,800
Required:
a. Determine the labor rate variance.
b. Determine the labor efficiency variance.
c. Determine the total flexible budget labor cost variance.
Answer:
A = $6,125
B = $2,125
C = $6,125
Explanation:
Standard Labor Time = 0.5 hours, Standard Labor rate = $12.50 per hour, Standard Time = 4800 * 0.5hour P U = 2400 hours
Actual labor time used = 2,230, Direct labor Cost = $34,000 per hour =$15.25 , Units manufactured = 4,800
(a) Labor Rate Variance = Actual Cost - standard cost of Actual Hours = $34,000 - ($12.50 * 2230) = $34,000 - $27,875 = $6,125 Favorable
(b) Labor Efficiency Variance = Standard Cost of Actual Hours - Standard Cost = (2,230 * 12.50) - (12.50 * 2400) = $27,875 - $30,000 = $2,125 Unfavorable
(c) Flexible budget labor cost variance = Flexible Budget cost - Actual Cost = (Actual qty * Std Rate) - (Actual qty - Actual Rate) = (2,230 * $12.50) - $34,000 = $27,875 - $34,000 = $6,125 Unfavorable
Use the selected data from Pinecrest Company's financial statements to answer the following question. 2018 2017 Cash $ 22,000 $ 14,000 Accounts receivable 42,000 16,000 Merchandise inventory 22,000 83,000 Prepaid expenses 23,000 18,000 Total current assets $109,000 $131,000 Total current liabilities $ 65,000 $ 72,000 Net credit sales 221,000 326,000 Cost of goods sold 168,000 299,000 Net cash flow from operating activities 16,000 29,000 Refer to the data for Pinecrest Company. The current ratio for 2018 is
Answer:
1.68
Explanation:
Calculation to determine what The current ratio for 2018 is
Using this formula
Current ratio=Current assets/Current liabilities
Let plug in the formula
Current ratio=$109,000/$65,000
Current ratio= 1.68
Therefore The current ratio for 2018 is 1.68
The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000, sales would have to be:_____.
A. $260,000.
B. $440,000.
C. $280,000.
D. $240,000.
Answer:
Option B. 440000
Explanation:
Given the contribution margin = 25%
Sales at break-even point = $200000
Net operating income = $60000
Sales at break even point = TFC / contribution margin ratio
200000 = TFC / 25%
TFC = 50000
Now find the net income:
Net income = Contribution margin - Fixed cost
60000 = Contribution margin - 50000
Contribution margin =60000 + 50000 = 110000
Sales revenue = Contribution margin / contribution ratio
Sales revenue = 110000 / 0.25 = 440000
Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders.
a. True
b. False
Answer:
a. True
Explanation:
This statement is correct, as global institutions were created with the objective of regulating global business from international treaties, which implemented a set of rules and regulations that must be followed by all organizations in a global market, as a form of protection to organizations, society and the environment, such as legislative and economic changes, crises and possible negative impacts inherent to organizations in a global business system.
What advice would you give to anyone who thinks they are going to be terminated from their employment?
Answer:
✓ Do not panic
✓ ask your employer for a honest feedback
✓Initiate a conversation in a neutral setting with your boss
✓Don't trust everything your boss says
✓Do your best work possible
✓Step up your game
✓Keep your boss and others in the loop
Rosalia White will invest $3,000 in an IRA for the next 30 years starting at the end of this year. The investment will earn 13 percent annually. How much will she have at the end of 30 years
Answer:
$879,597.65
Explanation:
The future value of an ordinary annuity formula is applicable in this case, since an ordinary annuity is such that payments into the accounts are expected to occur at the end of the periods rather than at the beginning of each year:
FV=yearly payment*(1+r)^n-1/r
yearly payment=$3,000
r=13%
n=number of annual payments =30
FV=$3000*(1+13%)^30-1/13%
FV=$3000*(1.13)^30-1/0.13
FV=$3000*(39.11589796-1)/0.13
FV=$3000*38.11589796/0.13
FV=$879,597.65
You have just deposited $9,000 into an account that promises to pay you an annual interest rate of 6.1 percent each year for the next 7 years. You will leave the money invested in the account and 15 years from today, you need to have $25,650 in the account. What annual interest rate must you earn over the last 8 years to accomplish this goal
Answer:
Annual interest rate = 8.23%
Explanation:
The annual interest rate i must have earn over the last 8 years to accomplish this goal is:
= ((25650/(9000*(1+6.1%)^7))^(1/8))-1
= ((25650/(9000*1.513588))^(1/8)) - 1
= ((25650/13622.29)^(1/8) - 1
= 1.882943323038931^(1/8) - 1
= 1.08231743862 - 1
= 0.08231743862
= 8.231743862%
= 8.23%
Botosan Factory has budgeted factory overhead for the year at $717,474, and budgeted direct labor hours for the year are 364,200. If the actual direct labor hours for the month of May are 331,400, the overhead allocated for May is
Answer:
$652,858
Explanation:
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
= $717,474 ÷ 364,200
= $1.97 per direct labor hour
Allocated overheads = Predetermined overhead rate x Actual Activity
= $1.97 x 331,400 direct labor hours
= $652,858
therefore,
The overhead allocated for May is $652,858.
There are linkages between the microeconomic decisions made by managers and the macroeconomic environment. There are numerous examples from the current recession of company layoffs at the micro level, directly influenced by the decline in economic activity at the macro level. For this assignment, research this linkage. How did the recession impact businesses/managers at the macro and micro levels? You may use one company as the basis of your research.
Answer:
One typical example of this linkage between the economy at the macroeconomic level, and business decisions at the macroeconomic and microeconomic level, is what happened with Lehman Brothers in 2008.
Explanation:
Lehman Brothers was one of the main investment banks in the United States. During the years prior to the financial crisis, Lehman Brothers decided to pursue a risky but profitable strategy of over leveraging -lending a lot more money than they had as deposits.
Once the financial crisis hit, a macroeconomic event, it affected the company at the macro and micro level. At the macro level because Lehman Brothers itself ceased to exist as it went bankrupt, and at the micro level, because it had to enter a process to pay off some debtors, and some of the employees who were laid off due to the dissolution of the firm.
Disney suffered lawsuits in France, at Disneyland Paris, because of the lack of fit between its transferred personnel policies and the French employees charged to enact them. This is an example of the: Group of answer choices effect of demand conditions. liability of foreignness. risks of a multidomestic strategy. effects of regionalization.
Answer:
liability of foreignness
Explanation:
Liability of foreignness is defined as the cost above what local firms incur that is realised by companies that operate in a foreign country.
This extra cost is influenced by various business environments that exist in the foreign country.
In the given scenario Disneyland Paris is suffering loss through lawsuits because of the lack of fit between its transferred personnel policies and the French employees charged to enact them.
This conflict is giving an extra cost profile which is referred to as liability of foreignness.
The Widget Co. can produce widgets according to the formula: q = 5K^3/4 L^1/4 where q is the output of widgets, and K, L are the quantities of capital and labor used.
a. Are there constant, increasing or decreasing returns to scale in widget production? Explain.
b. Are there, constant, increasing or decreasing marginal products of factors? Explain
c. In the short run, the amount of capital used by company A. is fixed. Derive the short-run cost function. (Note that the short-run cost function will show C as a function of Q, K and the factor prices w and r.)
d. Derive the long-run cost function.
Answer:
A) Constant Return to Scale
B) Decreasing Marginal Products
C) Short Run Cost Function = w*(Q/5)4 *(1/K`3) + rK`
D) (2Q/5)*(r3/4)*(w1/4)
Explanation:
A) Q(tL,tK) = 5*(tK)3/4*(tL)1/4
= t*Q(L,K)
Hence it exhibits constant return to scale
B) Here MPK = dQ/dK
= (3/4)* 5*L1/4*K-1/4
So dMPK/dK = (-3/16)*5*L1/4*K-5/4
Hence dMPK/dK < 0
thus exhibits decreasing Marginal Products
(Similarly for Labor also)
C) let K is fixed at K`
So Q = 5*K`3/4*L1/4
So L = (Q/5)4*(1/K`3)
So Short Run Cost Function = w*L + r*K`
C = w*(Q/5)4 *(1/K`3) + rK`
D) in long run, MRTS = MPL / MPK = w/r
So K/L = w/r
Thus rK = wL
So from production function
Q = 5*(wL/r)3/4*L1/4
= 5*(w/r)3/4*L
L* = (Q/5)*(r/w)3/4
similarly K* = (Q/5)*(w/r)1/4
so Long Run Cost Function = wL* + rK*
= (2Q/5)*(r3/4)*(w1/4)
XYZ Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,180 square feet and the actual level of activity was 1,270 square feet. The company's owner budgets for supply costs, a variable cost, at $3.50 per square foot. The actual supply cost last month was $4,980. What would have been the spending variance for supply costs
Answer:
The appropriate solution is "$535 U". A further explanation is described below.
Explanation:
The given values are:
Actual level of activity,
= 1270
Budgeted variable cost,
= $3.50
Actual supply cost,
= $4980
Now,
The spending variance for supply costs will be:
= [tex](Actual \ level \ of \ activity\times Budgeted \ variable \ cost)\times Actual \ supply \ cost[/tex]
= [tex](1270\times 3.50)-4980[/tex]
= [tex]4445-4980[/tex]
= [tex]535[/tex] (unfavorable)
Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2020 and use your constructed statement to answer the following question
Advertising 384,000
Beginning of year inventory 1,243,000
Depreciation 350,000
End of year inventory 1,128,000
General and administrative expenses 1,184,000
Gross sales 28,242,000
Interest expense 150,000
Lease payments 148,000
Management salaries 4,253,000
Purchases 18,243,000
Research and development 324,000
Returns and allowances 564,000
Taxes 925,000
Required:
What was gross profit from income statement for the year ending December 31, 2020?
Answer:
Delicious Dishes, Inc.The gross profit from income statement for the year ending December 31, 2020 is:
= $9,320,000.
Explanation:
a) Data and Calculations:
Advertising 384,000
Beginning of year inventory 1,243,000
Depreciation 350,000
End of year inventory 1,128,000
General and administrative expenses 1,184,000
Gross sales 28,242,000
Interest expense 150,000
Lease payments 148,000
Management salaries 4,253,000
Purchases 18,243,000
Research and development 324,000
Returns and allowances 564,000
Taxes 925,000
Depreciation 350,000
Delicious Dishes, Inc.
Income Statement for the year ending December 31, 2020
Gross sales $28,242,000
Returns and allowances (564,000)
Net sales $27,678,000
Less Cost of Goods Sold:
Beginning of year inventory 1,243,000
Purchases 18,243,000
End of year inventory (1,128,000) $18,358,000
Gross profit $9,320,000
Other Expenses:
Advertising $384,000
General and administrative expenses 1,184,000
Management salaries 4,253,000
Research and development 324,000
Interest expense 150,000
Lease payments 148,000
Total expenses $6,443,000
Profit before taxes 2,877,000
Taxes 925,000
Net income $1,952,000
Indicate whether each of the following transactions represents the purchase of a final good.
a. the purchase of wheat from a wheat farmer by a bakery.
b. the purchase of an aircraft carrier by the federal goverment
c. the purchase of frenche wine by a U.S. consumer
d. the purchase of a new airliner by American Airlinesa
Answer:
b. the purchase of an aircraft carrier by the federal goverment - purchase of a final good.
c. the purchase of frenche wine by a U.S. consumer - purchase of a final good.
d. the purchase of a new airliner by American Airlinesa - purchase of a final good.
Explanation:
A final good is a good that is consumed directly by consumers
Purchase of final good can be classfied into :
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of french wine is an example of consumption spending on nondurable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers.
Government spending - It includes government consumption expenditure and gross investment. Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers.
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
An intermediate good is a good that is used in the production of the final good. e.g. tthe purchase of wheat from a wheat farmer by a bakery would be used to make pastries.
1. Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. If the company instead expects to produce and sell 26,000 units for the year, calculate the expected level of income from operations.
2. Refer to information QS 1. Assume that actual sales for the year are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000 Prepare a flexible budget performance report for the year.
Answer:
Brodrick Company
1. The expected level of income from operations is:
= $266,000.
2. Flexible Budget Performance Report for the year
Flexible Actual Variance
Budget Budget
Sales revenue $480,000 $480,000 $0
Variable costs 96,000 112,000 $16,000 U
Fixed costs 150,000 145,000 5,000 F
Net operating income $234,000 $223,000 $11,000 U
Explanation:
a) Data and Calculations:
Expected production units = $20,000
Expected sales based on 20,000 units = $400,000 at $20 per unit
Variable costs = $80,000 at $4 per unit
Fixed costs = $150,000
Expected sales based on 26,000 units
Expected level of income from operations:
Sales revenue = $520,000 ($20 * 26,000)
Variable cost = 104,000 ($4 * 26,000)
Fixed cost = 150,000
Net income = $266,000
Actual sales revenue for the year = $480,000 (24,000 * $20)
Actual variable costs = 112,000 (24,000 * $4.67)
Actual fixed costs = 145,000
Net operating income = $223,000
Using the AS-AD and IS-LM models, show the effects of an increase in consumer confidence on the position of the AD, AS, IS, and LM curves in the short run and in the medium run. Precisely label all axes and curves to receive full credit. Label the short-run equilibrium and medium-run equilibrium with SR and MR, respectively.
Answer: hello your question has some missing information below is the missing information
Suppose the economy begins with output equal to its natural level. Then there is an increase in consumer confidence and households attempt to consume more for a given level of disposable income.
answer :
Attached below
Explanation:
IS-LM modeling curves intersects and it also defines the value of r and Y where r ( rate of interest ) Y( output level )
The AS-AD modeling is in equilibrium where aggregate demand curve and short run and long run aggregate supply curves intersects each other defining P and Y
p ( price level ) , Y ( output level )
Note : Increase in aggregate demand shifts IS outward , raises interest rate and output level
On January 2, 20X3, Kean Company purchased a 30 percent interest in Pod Company for $250,000. Pod reported net income of $100,000 for 20X3 and declared and paid a dividend of $10,000. Kean accounts for this investment using the equity method. In its December 31, 20X3, balance sheet, what amount should Kean report as its investment in Pod?a. $160,000.b. $223,000.c. $340,000.d. $277,000.
Answer:
.d. $277,000.
Explanation:
The computation of the amount reported as the investment is shown below:
= The value of the investment + investor share of the net income - dividend share of the net income
= $250,000 + 30% of $100,000 - 30% of $3,000
= $250,000 + $30,000 - $3,000
= $277,000
Hence, the amount reported as the investment is $277,000
The financial statements of the Bramble Corp. report net sales of $473850 and accounts receivable of $56000 and $25000 at the beginning of the year and the end of the year, respectively. What is the accounts receivable turnover for Bramble?
Answer:
the accounts receivable turnover for Bramble is 5.85 times
Explanation:
The computation of the account receivable turnover ratio is shown below
the account receivable turnover ratio is
= Net sales ÷ (Beginning account receivable + ending account receivable) ÷ 2
= $473,850 ÷ ($56,000 + $25,000)
= 5.85 times
Hence, the accounts receivable turnover for Bramble is 5.85 times
How does your new budget help you to meet your long-term goal of saving for college?
Answer:
make sure in the budget your savings are enough for college in the time you want
that is the expenditure must not over wegh the income...you should save as much as possible
Answer:
A budget helps create financial stability.
Explanation:
Why is budgeting crucial for college students?Budgeting assists you in achieving your academic and financial objectives.
A budget will also assist you in anticipating unforeseen costs and challenges. Budgeting necessitates difficult decision-making, but creating goals will make the process easier.
How can Budgeting helps individual?A budget aids in financial security A budget makes it simpler to pay bills on time, develop an emergency fund, and save for significant purchases like a car or home by tracking costs and sticking to a plan. A budget, in general, puts a person on a better financial footing in the short and long term.Goal of Budget-A budget is used to plan, manage, track, and improve one's financial status. In other words, a budget keeps you on track toward your long-term financial goals by allowing you to regulate your spending and consistently save and invest a percentage of your income.
Learn more about Budgeting here-
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If a court determines that a manager's corporate decision amounted to self-dealing, a. the manager is automatically personally liable to the corporation. b. the transaction being challenged will be automatically voided. c. the manager will automatically be fired. d. the business judgment rule will not apply.
Answer:
d. the business judgment rule will not apply.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
In Business management, if a court of competent jurisdiction determines that a manager's corporate decision amounted to self-dealing i.e putting his or her own interests first, the business judgment rule will not apply.
Generally, in order for the business judgement rule to apply, it is expected or required that a manager should act in the best interest of a corporation.
Which of the following is not a traditional training method?
A) classroom lectures B) experiential exercises C) videoconferencing D) workbooks
B) Experimental Exercises
Makers Corp. had additions to retained earnings for the year just ended of $205,000. The firm paid out $185,000 in cash dividends, and it has ending total equity of $4.90 million. The company currently has 100,000 shares of common stock outstanding.
1. What are earnings per share?2. What are dividends per share? 3. What is the book value per share? 4. If the stock currently sells for $68 per share, what is the market-to-book ratio?5. What is the price-earnings ratio?6. If the company had sales of $3.41 million, what is the price-sales ratio?
Answer:
Waka Waka Wa e e
Explanation:
Queen Shakira
On June 30, Collins Management Company purchased land for $640,000 and a building for $960,000, paying $800,000 cash and issuing a 7% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $40,000 on the principal plus the interest accrued from the date of the preceding payment.a. Journalize the entry to record the transaction on June 30. June 30.b. Journalize the entry to record the payment of the first installment on December 31. Dec. 31.c. Journalize the entry to record the payment of the second installment the following June 30. Assume a 360-day year
Answer:
hhd
soon after the following URLS
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours $ 16.40 per direct labor-hour Customer orders Number of customer orders $ 363.00 per customer order Product testing Number of testing hours $ 71.00 per testing hour Selling Number of sales calls $ 1,488.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 180 direct labor-hours, 13 hours of product testing, and 6 sales calls.Required: Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?
Answer:
Total allocated costs= $13,266
Explanation:
To calculate the costs allocated to the order, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Order size= 16.40*180= 2,952
Customer orders= 363*1= 363
Product testing= 71*13= 923
Selling= 1,488*6= 8,928
Total allocated costs= $13,266
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,500,000 and can be sold for $715,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?
Hint: 1. Find the remaining book value at the end. 2. Subtract this from the expected sale price to find the gain on sale. 3. Apply the tax rate to this gain to find the taxes owed. 4. The after-tax salvage value is the sale price minus the taxes.
a) $715,000.
b) $752,468.
c) $540,444.
d) $677,532.
e) $471,900.
Answer:
d) $677,532.
Explanation:
1.
Written down value of the equipment after 4 years = Cost x ( 100% - 1st year MACRS - Second-year MACRS - Third-year MACRS - Fourth-year MACRS ) = $3,500,000 x ( 100% - 20% - 32% - 19.20% - 11.52% ) = $604,800
2.
Now calculate the gain on the sale of equipment
Gain on the sale of equipment = Sale Price - Written down Value after 4 years = $715,000 - $604,800 = $110,200
3.
Tax owed = Gain on the sale x Tax rate = $110,200 x 34% = $37,468
After-tax salvage value = Sales price - Tax = $715,000 - $37,468 = $677,532
Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended.
Accounts receivable $33,000
Depreciation expense 12,000
Land 27,000
Cost of goods sold 90,000
Retained earnings 59,000
Cash 9,000
Equipment 71,000
Supplies 6,000
Accounts payable 23,000
Service revenue 20,000
Interest expense 4,000
Common stock 10,000
Income tax expense 12,000
Accumulated depreciation 45,000
Long-term debt 40,000
Supplies expense 14,000
Merchandise inventory 31,000
Sales revenue 140,000
Required:
a. Calculate the total current assets at December 31, 2019.
b. Calculate the total liabilities and owners’ equity at December 31, 2019.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019.
d. Calculate the net income (or loss) for the year ended December 31, 2019.
e. What was the average income tax rate for Pope’s Garage for 2019?
f. If $16,000 of dividends had been declared and paid during the year, what was the January 1, 2019, balance of retained earnings?
Answer and Explanation:
a. The computation of the total current asset is shown below
= Account receivable + cash + supplies + merchandise inventory
= $33,000 + $9,000 + $6,000 + $31,000
= $79,000
b The total liabilities and owners equity is
= Account payable + long term debt + common stock + retained earnings
= $23,000 + $40,000 + $10,000 + $59,000
= $132,000
c. The earnings from operations is
Sales revenue $140,000
Less cost of goods sold $90,000
Gross profit $50,000
add: service revenue $20,000
Less depreciation expense $12,000
Less supplies expense $14,000
Operating income $44,000
d. The net income is
= operating income - interest expense - income tax expense
= $44,000 - $4,000 - $12,000
= $28,000
e. The average income tax rate is
= $12,000 ÷ $40,000 × 100
= 30%
f. The beginning retained earnings is
= $59,000 + $16,000 - $28,000
= $47,000
MC algo 8-18 Valuing Stock Asonia Co. will pay a dividend of $5.10, $9.20, $12.05, and $13.80 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 9.4 percent on the company's stock, what is the stock price?
a. $3708
b. $32.88
c. $42.38
d. $3119
e. $35.41
Answer:
d. $31.19
Explanation:
The computation of the stock price is shown below
Stock Price is
= [$5.10 ÷ (1 + 0.094)^1 + $9.20 ÷ (1 + 0.094)^2 + $12.05 ÷ (1 + 0.094)^3 + $13.80 ÷ (1+0.094)^4]
= $4.66 + $7.69 + $9.20 + $9.63
= $31.19
hence, the option d is correct
Why are marketers sometimes "forced” to reposition their products or services? Il
your answers with examples.
Iar
Explaination
Marketers sometimes forced to reposition their services or products to ensure profitability the company has no other option but to reposition its services or products that would cater to a new target segment of their existing market and ensure sales or profitability.
ReasonThere could be many reasons for marketers repositioning their products.
The products are evolving and getting more features into it. They needs to marketed differently in order to make the customers aware of the new features, add-ons. In this case, it is better to reposition the products.
Please help I don’t understand
