Answer:
Explanation:
1.
Shareholders equity = Common stock + Retained earnings
Beg. balance = Common stock+Retained earnings = 166,000 + 66,000 = 232,000
Statement of shareholder's equity
Beg balance 232,000
Issuance of common stock 56,000
Add: Net Income 46,000
Less: Dividends 11,600
End balance 322,400
Balance sheet
There is not information for preparation of balance sheet but following is the layout:
Assets:
Cash
Supplies
Prepaid rent
Land
Liabilities:
Accounts payable
Salaries
Utilities
Notes payable
Stockholder's equity:
Common stock 222,000 [166,000+56,000]
Retained earnings 112,000 [66,000+46,000]
Total 334,000
Answer:
Following are the factors in the economy that affects the cost of money:
- Inflation
- Required return of the investors on the additional risk
- Systematic risk in the economy
- Duration of lending
- Credit Spread
Explanation:
If the inflation rate increases then the required return would be compensation for inflation and required return.
The higher is the risk associated with the investment the higher would be the investor's required return.
According to the Capital Asset Pricing Model, the company compensates the investor for the systematic risk, not for the unsystematic risk that he faces because CAPM assumes that the investor has diversified portfolio of investment.
If the amount lend is for greater duration, then there is a risk that the borrower will default payments. There is another explanation which is that there is higher chances of loss of opportunity due to lending amount for greater duration.
Credit Spread is the measure of the risk that the company will be unable to pay interest on loan or principal amount or both. So as we know higher the risk associated with the investment, the higher is the Required return demanded by the investors.
Answer:
a) $23,260 b) = $128,860
Explanation:
The question is divided into two parts
part A) calculate the amount of fixed cost incurred each month by Zachery Boat Company
Step 1: We calculate the Variable Cost per unit as follows:
Variable Cost per unit= The Changes in total cost / the change in volume
= ($160,540 - $49,000) / (208 boats- 39 boats )
= $111,540 / 169 Boats
= $660 per boat
Step 2: Now determine the fixed cost
Fixed cost = The total cost incurred (high) - the variable cost( 208 boats x $660 per boat)
= $160, 540 - $137,280
= $23,260
Part b) We calculate the total estimated costs if 160 boats are made
= Total costs = The fixed cost (determined above) + The variable cost (160 boats x $660 per boat)
= $23,260 + $105,600
= $128,860
Answer:
D.
Explanation:
According to VRIO there are 4 questions asked about a resource or capability to determine its competitive potential:
The Question of Value: Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" (can it add value? )
The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?"
The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?" (can other vendors do the same activities?)
The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?"
With those 4 questions, we analize the statements.
<em>a. It is in accordance with the question of imitability. </em>
<em>b. It is in accordance with the question of value.</em>
<em>c. It is in accordance with the question of organization.</em>
<em>d. It should be avoided. We don't want our activities to be imitated. </em>
3141159 % dollars hope this helps ^-^
