This is incorrect (what the student is saying) obviously the quantity should be bigger to be worth the $5 dollars you are spending. But what it is saying is since a chocolate bar once sold for $4 is taking more money to produce they need to raise the price so that they earn money as well. If they are spending all the money that they earn from that $4 chocolate bar then they earn nothing and business goes down.
Answer and Explanation:
a and b The computation of internal growth rate is shown below:-
ROA = Net Income ÷ Total Assets
= $28,000 ÷ $285,000
= 9.82%
Retention Ratio = b = (Net Income - Dividends) ÷ Net Income
= ($28,000 - $3,200) ÷ $28,000
= $24,800 ÷ $28,000
= 88.57%
Internal Growth Rate = (ROA x b) ÷ (1 - ROA x b)
IGR = 9.82% × 88.57% ÷ (1 - 9.82% × 88.57%)
= 9.53%
c. Total Assets (t=1) = Total Assets (t=1) + Net Income - Dividends
= 285,000 + 28,000 - 3,200
= $253,800
ROA = 28,000 ÷ $253,800
= 11.03%
IGR = 11.03% × 88.57% ÷ (1 - 11.03% × 88.57%)
= 10.83%
When Darla prepares her company's balance sheet, she should include accounts receivable in the list of current assets. Option D
<h3>What are
accounts receivable?</h3>
Generally, Accounts receivable, also known as AR or A/R, are claims for payment that are legally enforceable that are held by a firm for products delivered or services performed that consumers have requested but have not yet paid for. The abbreviation for accounts receivable is accounts receivable.
The money that consumers owe a firm for products or services that they have received but have not yet paid for is referred to as the company's accounts receivable.
For instance, the amount that is owed by consumers who buy things on credit is added to the accounts receivable when such customers make their purchases.
In conclusion, When Darla is putting out the balance sheet for her firm, she needs to make sure that the list of current assets includes accounts receivable. The D Option
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CQ
when darla prepares her company's balance sheet, she should include ___ in the list of current assets. a. land b. equipment c. leased property d. accounts receivable
A firm’s net cash flow from operating activities includes: Cash received from sale of merchandise
Answer: Cash received from sale of merchandise- C)
