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TEA [102]
2 years ago
12

In the preparation of a pro forma income statement, an entrepreneur must first _____.

Business
1 answer:
Marat540 [252]2 years ago
4 0

In the preparation of a pro forma income statement, an entrepreneur must first develop a sales budget.

<h3>What is sales budget?</h3>

A sales budget is what gives summary of quantity of goods and services which a company intends to sell in the future. It is however used in the production budget.

Hence, in the preparation of a pro forma income statement, an entrepreneur must first develop a sales budget.

Learn more about sales budget here: brainly.com/question/15310075

#SPJ11

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V Boutique is a fashion house that designs, manufactures, and sells evening gowns. Their lowest-selling design is a vibrant gree
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Answer:

V. Boutique

Assuming their projection of 500 gowns is accurate, the total average cost they will incur per gown is:

= $108.

Explanation:

a) Data and Calculations:

Unit variable costs:

Fabric and materials per gown =                       $62

Labor cost  per gown to construct the gown = $40

Total unit variable costs  per gown =               $102

Unit fixed costs:

Equipment cost  = $3,000/500                           $6

Total average costs per gown =                      $108

b) The average cost per gown equals the unit costs (variable costs per unit and the fixed costs per unit).  V. Boutique incurs a total equipment cost of $3,000 for the 500 gowns.  This means that each gown consumes $6 ($3,000/500) in equipment costs.

7 0
3 years ago
The Real Estate Settlements and Procedures Act (RESPA) applies to: Select one: A. those parties who are indirectly related to a
ad-work [718]

Answer:

D. all residential mortgages for occupancy only.

Explanation:

  • The act applies to the loan purchases, property investments and equity lines of credit. It proves brokers to give disclosure of borrowers regarding the real estate.
8 0
3 years ago
On January 1, Year 1, Parker Company issued bonds with a face value of $77,000, a stated rate of interest of 8 percent, and a fi
musickatia [10]

Answer: See explanation

Explanation:

a. Prepare an amortization table.

The ammortization table has been prepared and attached.

Note that:

Cash paid = $77000 × 7%

Interest expense was calculated as:

= Last year’s Bond Carrying value × 10%

Discount ammortization = Interest Expense - Cash Paid

b. What is the carrying value that would appear on the Year 4 balance sheet?

The carrying value will be $75600.

c. What is the interest expense that would appear on the Year 4 income statement?

The interest expense will be $7433.

d. What is the amount of cash outflow for interest that would appear in the operating activities section of the Year 4 statement of cash flows?

The cash outflow for interest be $6160.

Carrying Value = $75600

Interest Expense = $7433

Cash Outflow for Interest = $6160

6 0
3 years ago
When miriam inc., a handbag manufacturer headquartered in the u.s., decided to invest in japan, it tied up with a japanese fashi
polet [3.4K]
<span>This is an example of a strategic alliance of joint venture or business partnering. Joint venturing when trying to move into a new market can be a great idea for a business because they can use the distribution and established markets that the current business already has to move their own products.</span>
5 0
3 years ago
A firm can develop competitive advantage by
Slav-nsk [51]

Answer:

The correct answer is E

Explanation:

Competitive advantage is the advantage which the firm or business attains when they create more value than the other firms by the strategic position of the lower costs or the greater benefits.

It focus on increasing or rising the wedge among what the customers are willing to pay and the cost or expense that the firm incurs.

So, the firm could develop the advantage through producing superior products at the lower cost, raise the willingness to pay the great deal with slight for increasing the costs and also develop the large cost savings.

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