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2 years ago

leverage is a financial technique used to determine to what extent fixed costs are used relative to variable costs.

1 answer:

Colt1911 [192]2 years ago

8 0

Operating leverage is highest in groups that have a high share of constant working fees when it comes to variable operating costs.

Operating leverage is a value-accounting system that measures the diploma every day which a company or venture can increase working earnings by means of increasing sales.

Operating cost are the continuing expenses incurred from the everyday of walking a enterprise. working expenses encompass each expenses of goods bought and different running costs.

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The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any prope

tia_tia [17]

Answer:

151,000

Explanation:

48,000+18000+40,000+52,000-11,000+4,000

=66,000+40,000+52,000-11,000+4,000

=106,000+52,000-11,000+4,000

=158,000-11,000+4,000

=147,000+4,000

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3 years ago

Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac

ddd [48]

Answer:

Please see the answers below:

Explanation:

Debit: Equipment $912,000

Credit: Notes Payable $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

Debit: Notes Payable $182,400

Debit: Interest Payable $20,064

Credit: Cash $202,464

To record Cash Payment of 1st year Installment and Interest.

Debit: Notes Payable $182,400

Debit: Interest Payable $20,064

Credit: Cash $202,464

To record Cash Payment of 2nd year Installment and Interest.

Debit: Depreciation Expense $91,200

Credit: Accumulated Depreciation $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

6 0

3 years ago

Eric's Used Book Store prepares its financial statements in accordance with IFRS. Inventory was purchased for €6 million and lat

andrew-mc [135]

Answer:

€6 million

Explanation:

As we know that

According to the International Financial Reporting Standards, if the net realizable value of the inventory increases then the written down of reversal value is required

And according to the GAAP, the inventory should be valued at lower of cost or net realizable value

So in the given case, the inventory is purchased at €6 million and now it is estimated value is €7 million so the lower value i.e €6 million should be reported on the balance sheet.

4 0

3 years ago

Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR

PolarNik [594]

Answer:

a. 9.43%

Explanation:

IRR is the rate of return that makes initial investment equal to present value of cash inflows

Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r

1250 = 325 * [1 - 1 / (1 + r)^5] /r

Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%

1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943

1250 = 325 * 3.846639

1250 = 1,250

Therefore, The project IRR is 9.43%

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3 years ago

When entrepreneurs bring a new product to market or use a new production method, they are?

Tamiku [17]

Entrepreneurs are people who design, launch and run new businesses that are initially small with an aim of making profit. When entrepreneurs are bringing a new business or a new production method to the market they are innovating. Innovation is the process of implementing new idea or method of production in a business to create or increase value of a organization.

6 0

3 years ago