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stiks02 [169]
3 years ago
3

A company has only two divisions: Division A and Division B. Last year, Division A made 60% of the company's total revenue and D

ivision B made 40% of the total revenue. This year, Division A's revenue has decreased by 35% and Division B's revenue has decreased by 5%.
Which division had higher revenue this year?
A) Division A
B) Division B
C) They are both the same
D) It is impossible to determine with the available information
Business
2 answers:
Inessa [10]3 years ago
7 0

Answer:

Division B would have higher revenue

Explanation:

Rufina [12.5K]3 years ago
6 0

Answer:

Division B (B)

Explanation:

Let the total company revenue be 'x'

If division A made 60% of the total revenue, this means division A made 60% of x = 0.6x

Division B made 40% of the total revenue i.e 40% of x = 0.4x

If this year Division A revenue decrease by 35% i.e 0.35x, this year revenue for division A will be;

0.6x-0.35x = 0.25x

This means that division A generate 25% of the company revenue this year.

Similarly for division B, their revenue decrease by 5%, their revenue decrease will be 5% of x which is 0.05x, therefore their revenue for this year will be;

0.4x-0.05x

= 0.395x

This means that division B generate 39.5% of the company revenue this year.

According to the calculation, division B had the highest revenue this year.

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3 years ago
Net cash provided by operating activities was $12,000. Net cash provided by investing activities was $2,000. Net cash used in fi
ser-zykov [4K]

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$25,000

Explanation:

The cash balance at the end of the year can be calculated as follows:

=> $12,000 + $2,000 + $7,000 + $4,000

7 0
3 years ago
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When making competitive priority decisions the firm: must ensure the pwp is correctly established must select the correct supply
snow_tiger [21]

When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>


Making decisions requires exchanging off one thing against another.  

In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.

5 0
3 years ago
You want to be able to withdraw $45,000 from your account each year for 30 years after you retire. You expect to retire in 25 ye
Amanda [17]

Answer:

Expected withdrawal is $45,000 for 30 years = total of $1,350,000

You will be required to invest in $25.063 every year.

Explanation:

By applying the goal seek formula in excel to determine the annual invested fund, based on a compounded interest rate of 6% over a duration of up to a maximum of 25 years from Year 0, we can clearly see that Savings ought to be $25,063 for every year.

The future Value of each saved fund is derived and added to future value of each years subsequent saved fund to arrive at a total expectation of $1,350,000 expected value after 25 years (i.e. $45,000 annual withdrawal x 30 years of withdrawal)

This brings total savings to $626,572 for the entire 25 years

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4 0
4 years ago
Using Statement of Cash Flows Information to Assess Company Life-Cycle Stage
yKpoI14uk [10]

Answer:

Explanation:

                     Operating         Investing          Financing     Cycle

                          3751                (2404)               1381          Growth      

                          1102                 2054                (759)          Maturity

                          20                    (480)                 926            Growth

                        (2580)               (4200)              7508           Introduction

                         (409)                 5581                (2356)         Declining

                         2281                 (3451)               1957             Growth  

                         6385                 3272                (1958)         Maturity  

                         (365)                (1678)               (3478)         Declining

In the introduction phase , cash flow from the operating and investing activities are negative as the company generate cash for investment through financing activities for operation

In the growth phase , the activities begin to pay off gradually while investing is still on simultaneously as operating activities generate a positive cash flow  , investing negative and finance positive

In the maturity phase , company start to pay offset debt and buy back the stock as the business appears stable. Operating and financing activities generate a positive cash flow and financing negative.

In declining stage ,sales begin to fall and operating activities nosedive , investing may be positive as assets are being sold off and financing activities negative.

               

5 0
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