Answer:
1. Measure of the percentage change in earnings before interest and tax or operating cash flow:
B) Degree of operating leverage
2. P/E Ratio of 10 indicates that:
c. The value of the stock will be 10 times the initial investment at the time of maturity.
Explanation:
Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue. With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income. There are many ways to measure a company's degree of operating leverage. One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.
Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share. It is used to evaluate the value of the company's stock. It points out whether the company's stock is undervalued, overvalued, or correctly valued.
Answer and Explanation:
1. Margie Johnson would be ethically wrong if she grants the boss's favour to not report inventory shrinkage. Also financial statements would not show a true and fair view if she decides to follow what her boss is asking. She should report true inventory value in financial statements.
2. Yes Ryan is being professional since he is out to improve company's sales and income even though he may be putting pressure on employees to work overtime
Answer:
the inventory should be recorded at $8,500
Explanation:
As we know that according to GAAP, the inventory should be recorded at a cost or net realizable value whichever is lower
So as per the question
Historical cost is $12,000
And, the net realizable value is
= Expected selling price - expected selling cost
= $9,000 - $500
= $8,500
So, the lower cost is $8,500
Hence, the inventory should be recorded at $8,500
Answer:
D- all of the above
Explanation:
Trends are things a lot of people "do", and these are all an example of that.
Answer:
11,538 units
Explanation:
Given that:
Fixed assets = $150,000
Variable cost = $2
Sales price = $15
Break even point = Fixed cost ÷ Contribution margin
Contribution margin = Sales per unit - Variable cost per unit = $15 - $2 = $13
Break even point (Sales) = $150,000 ÷ $13 = 11,538 units
Therefore, 11,538 widgets must be sold to break even.
