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vesna_86 [32]
1 year ago
10

Pakistan State Oil - the leading oil marketing company of Pakistan, operated approved funded defined benefit pension schemes sep

arately for permanent management and non-management employees since its inception in 1976.
Recently, the Company has launched a Defined Contribution Scheme in year 2019 for its employees. This scheme allows early vesting of retirement benefits to the employees so that their accumulated pension benefit would be available on cessation of service at any time instead of waiting for superannuation/retirement age.

In view of the aforementioned, come up with at least three reasons for PSO to switch from DB to DC Scheme. Shall it going to benefit the company? Your answer should be in detail with solid justifications and arguments.
Business
1 answer:
mamaluj [8]1 year ago
3 0

The reasons for PSO to switch from DB to DC Scheme are:

  • It has gold standard for pensions.
  • They are more secure.
  • More generous than DC pensions and pay an income that increases along with inflation.

<h3>What are the reasons for a shift?</h3>

The movement from defined benefit (DB) to defined contribution (DC) pension plans is known to be one that has made workers to decide or make choices that may affect their financial resources in terms of retirement.

Therefore,   DC Scheme is more of a benefit to the employees that the company as it tends to lower an employee's taxable income.

Learn more about pensions from

brainly.com/question/10318001

#SPJ1

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sysyster corp. has an ROE of 16 percent and a payout ratio of 24 percent. what is its sustainable growth rate?
pochemuha

Answer:

The answer is 13.84 percent

Explanation:

The formula for sustainable growth rate is:

(Return on equity(ROE) x retention rate)/1 - Return on equity(ROE) x retention rate

Retention rate = 1 - payout ratio.

So, retention rate = 1 - 0.24

= 0. 76

Return on equity(ROE)= 0.16

(0.16 x 0.76) / 1 - ( 0.16 x 0.76)

= 0.1216 / 1 - 0.1216

0.1216/0.8784

=0.1384

Expressed as a percentage:

13.84percent

4 0
3 years ago
upton industries has revenues of $42,629, interest expense of $1,230, depreciation of $2,609, cost of goods sold of $23,704, div
igor_vitrenko [27]

Option a) $5075.88 is the addition to the retained earnings

Current profits less any dividends or other payouts to shareholders are a company's retained earnings. Every time an accounting entry is made that has an effect on a revenue or expense account, this sum is modified. A sizable retained profits balance suggests that the corporation is in a secure financial position.

Computing after-tax profit:

(Revenues - Interest cost - Depreciation - Cost of goods sold - Administrative costs) x ( 1 - tax)

= ($42629 - $1,230 - $2,609 - $23,704 - $7,040) x ( 1 - 22%)

= $6,275.88

Retained earnings addition:

= After-tax net profit - Dividends paid

= 6,275.88 - 1,200

= $5,075.88

Hence, option a) is the correct answer

Learn more about retained earnings:

brainly.com/question/14529006

#SPJ4

3 0
1 year ago
How is the advancement of technology blurring the lines between humans and non- humans?
MArishka [77]

Answer:

As robotics quickly advance, scientists say the lines between robots and humans is beginning to blur.

That means one day with robotic prosthetics that work seamlessly with a human's muscles, with tiny robots that swim in our blood streams and fix medical problems and nano-scale robots implanted in our brains, we will become robotic humans.

As scary and sci-fi as that may sound, researchers say robotics will cure diseases, make amputees feel whole again and greatly extend our lives

Explanation:

3 0
2 years ago
Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of
Elden [556K]

Answer:

$10,140,000

Explanation:

To make consolidated statements company needs to consolidate the financial data of its own and its subsidiary.

Revenue can be consolidated of parent and subsidiary as follow:

First

Add revenue of both companies

Total Sales = Patti Company sales + Shannon Inc. sales

Total Sales = $10,000,000 + $200,000 = $10,200,000

Now deduct the sale made to each other because sales mad within the group is not recorded for consolidation purposes and it is not a sale for a group it is an internal group transfer.

Consolidated Sales = Total sales - Internal Sales

Consolidated Sales = $10,200,000 - $60,000 = $10,140,000

8 0
3 years ago
The records of penny Co. Indicated that 415,000 of merchandise should be on hand December 31. The phyiscla inventory indicates t
Nata [24]

Answer:

See explanation section

Explanation:

As there is a difference between the physical count of the inventory and actual Inventory count, it indicates that the merchandise inventory is either sold or wasted. However, for continuing the operation smoothly, it is assumed as sold. Therefore, the journal entry to record the sale is -

December - 31       Cost of goods sold           Debit          45,000

                           ($415,000 - $370,000)

                                        Merchandise Inventory     Credit       45,000

                    (To record the sale of merchandise: adjusted)

5 0
3 years ago
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