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2 years ago

"Your research, Adams, should focus on making the products smaller and the prices bigger."

Business

1 answer:

Setler79 [48]2 years ago

6 0

Answer:

When the products are smaller, there are a lot of perks that the company can get:

- The materials used for production will be in lesser amount.

- The amount of products that can be distributed with a single shipment will be in larger amount

- The amount of products can be put on shelves among the shops/retailers will be larger in amount

If we combined these perks with higher price for the product, the profit margin of the product will be higher. This means that the seller can obtain higher amount of profit by selling lesser amount of product.

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Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Redeemed bonds

Burka [1]

Answer is given below

Explanation:

type of cash flow activity

a. Redeemed bonds ---------------Fiancing

b Issued preferred stock -----------Fiancing

c. Paid cash dividends --------------Fiancing

d. Net income --------------------------Operating

e. Sold equipment --------------------Investing

f. Purchased treasury stock -------Fiancing

g. Purchased patents ----------------Investing

h. Purchased buildings -------------Investing

i. Sold long-term investments ----Investing

j. Issued bonds ------------------------Fiancing

k. Issued common stock -----------Fiancing

7 0

3 years ago

Journalize the adjusting entries from the adjustments columns of the worksheet. (Credit account titles are automatically indente

Crazy boy [7]

Answer:

The following are the adjusting entries and the amounts entered are supposed and imaginary.

Explanation:

Date Account Titles and Explanation Debit Credit

Mar. 31 Supplies Expense Dr 10,000

Supplies Account Cr 10,000

When supplies are expensed out. If supplies have a balance of 30000 and 10000 is used up.

Mar. 31 Depreciation Expense Dr 5000

Accumulated Depreciation Cr 5000

Depreciation expense amounts to 5000 for the current year

Mar. 31 Unearned Service Revenue Dr 3000

Service Revenue Cr 3000

Unearned Service Revenue is a liability of the person or company.

Mar 31. Salaries and Wages Expenses Dr 2000

Cash Cr 2000

Slaries and wages paid in full by cash to 2000

6 0

3 years ago

On July 1, a company paid the $600 premium on a one-year insurance policy with benefits beginning on that date. What will be the

Schach [20]

Answer:

$300

Explanation:

When insurance is paid in advance, the entries required are

Debit Prepaid Insurance

Credit Cash account

As time elapses and the insurance expires,

Debit Insurance expense

Credit Prepaid Insurance

Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)

= 6/12 * $600

= $300

The insurance expense on the annual income statement for the first year ended December 31 is $300.

8 0

2 years ago

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou

Masteriza [31]

Answer:

The incremental cost is ($10,360)

Explanation:

Analysis of total cost over the 5 year period

Retain Old Machine Buy New Machine

Variable / Incremental Operating

Costs

Old Machine 124,750

New Machine 97,800

Old Machine Book Value

Retain: Annual depreciation 8,430

Buy : Lump sum written off 8,430

Old Machine Disposal (8,490)

Purchase Cost of New Machine 25,080

Total Cost 133,180 122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

8 0

3 years ago

Let's say there's a company that can fully tax deduct the interest on its loans. If this company borrows more, then the discount

umka21 [38]

Answer:

High

Low

Explanation:

When a company borrows funds it has opportunity to avail tax shield on the interest amount of the borrowing fund. If the company borrows more fund then the discounted value of tax shield will increase while the financial distress cost will decrease.

5 0

3 years ago