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4 years ago

Use the below information to answer the following question.

Business

1 answer:

lianna [129]4 years ago

7 0

Answer:

$2,253.35

Explanation:

external financing needed = EFN = [(total assets/total sales) x ($ Δ sales)] - [(total current liabilities/total sales) x ($ Δ sales)] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]

total assets = $48,900

total sales = $42,700

$ Δ sales = $5,978

current liabilities = $3,650

profit margin = net income / sales = 0.129

forecasted sales = $48,678

dividends payout ratio = dividends / net income = 0.35

EFN = [($48,900/$42,700) x ($5,978)] - [($3,650/$42,700) x ($5,978)] - [0.129 x $48,678 x (1 - 0.35)]

EFN = $6,846 - $511 - $4,081.65 = $2,253.35

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Answer:

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3 years ago

A firm has the following accounts and financial data for 2007:

Oksi-84 [34.3K]

Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

To calculate firms' earning first we less cost of goods and total operating expenses from sales revenue:

= $3,060 - $1,800 - 600

= $660

Now we deduct the interest expense, then

= $660 - $126

= $534

Now we deduct tax rate, then

= $534 × $213.60 ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

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5 0

4 years ago

If an important component of a firm's production is difficult to specify in a contract and even more difficult to enforce in its

Tanya [424]

Answer: d) vertically integrate upstream to build the component

Explanation:

Every good has a supply line from the suppliers who supply the raw materials required to the Producers who convert it to the distributor that brings it to the final user. Vertical Integration refers to when a company such as the producers acquires another company in the supply chain to make things easier for them for instance acquiring the suppliers of a raw material that they need. A practical example would be DeBeers acquiring rights to a diamond mine.

The company in question can engage in Vertical Integration and acquire a supplier that produces the component so that it can be able to specify how it should be made and enforcing production standards.

7 0

4 years ago

For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input d

Helga [31]

Answer:

Lowe Company

1. Impact on Income and the Dollar Amount:

Aug. 1 No impact

Aug. 5 +$5,200 - $4,000 = +$1,200

Aug. 8 No impact

Aug. 9 = -$125

Aug. 10 -$600 +$400 = -$200

Aug. 12 None

Aug. 14 None

Aug. 15 -$92

Aug. 18 +$50

Aug. 19 +$4,800 -$2,400 = $2,400

Aug. 22 -$500

Aug. 29 -$43

Aug. 30 None

Total = +$2,690

2. Journal Entries:

Aug. 1 Debit Inventory $7,500

Credit Accounts Payable (Aron Company) $7,500

Purchase of goods on credit terms of 1/10, n/30, FOB destination, invoice dated August 1.

Aug. 5 Debit Accounts Receivable (Baird Corp.) $5,200

Credit Sales Revenue $5,200

Sale of goods on credit terms of 2/10, n/60, FOB destination, invoice dated August 5.

Debit Cost of goods sold $4,000

Credit Inventory $4,000

Cost of goods sold.

Aug. 8 Debit Inventory $5,400

Credit Accounts Payable (Waters Corporation) $5,400

Purchase of goods on credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.

Aug. 9 Debit Freight-in $125

Credit Cash $125

Freight-in paid for cash.

Aug. 10 Debit Sales Returns $600

Credit Accounts Receivable (Baird Corp.) $600

Goods returned by a customer.

Debit Inventory $400

Credit Cost of goods sold $400

Cost of returned goods.

Aug. 12 Debit Accounts Payable (Waters Corporation) $400

Credit Inventory $400

Price reduction granted by Waters.

Aug. 14 Debit Accounts Payable (Aron) $200

Credit Cash $200

Part-payment to Aron on account.

Aug. 15 Debit Cash $4,508

Debit Cash Discounts $92

Credit Accounts Receivable (Baird Cop.) $4,600

Cash received on account.

Aug. 18 Debit Accounts Payable (Waters Corporation) $5,000

Credit Cash $4,950

Credit Cash Discounts $50

Cash payment on account.

Aug. 19 Debit Accounts Receivable (Tux Co.) $4,800

Credit Sales Revenue $4,800

Credit sales on terms of n/10, FOB shipping point, invoice dated August 19.

Debit Cost of goods sold $2,400

Credit Inventory $2,400

Cost of goods sold.

Aug. 22 Debit Sales Allowances $500

Credit Accounts Receivable (Tux Co.) $500

Sales allowances granted to Tux Co. on account.

Aug. 29 Debit Cash $4,257

Debit Cash Discounts $43

Credit Accounts Receivable (Tux Co.) $4,300

Aug. 30 Debit Accounts Payable (Aron Company) $7,300

Credit Cash $7,300

Cash payment on account.

Explanation:

a) Data and Analysis:

Aug. 1 Inventory $7,500 Accounts Payable (Aron Company) $7,500

credit terms of 1/10, n/30, FOB destination, invoice dated August 1.

Aug. 5 Accounts Receivable (Baird Corp.) $5,200 Sales Revenue $5,200

credit terms of 2/10, n/60, FOB destination, invoice dated August 5.

Cost of goods sold $4,000 Inventory $4,000

Aug. 8 Inventory $5,400 Accounts Payable (Waters Corporation) $5,400

credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.

Aug. 9 Freight-in $125 Cash $125

Aug. 10 Sales Returns $600 Accounts Receivable (Baird Corp.) $600

Inventory $400 Cost of goods sold $400

Aug. 12 Accounts Payable (Waters Corporation) $400 Inventory $400

Aug. 14 Accounts Payable (Aron) $200 Cash $200

Aug. 15 Cash $4,508 Cash Discounts $92 Accounts Receivable $4,600

Aug. 18 Accounts Payable (Waters Corporation) $5,000 Cash $4,950 Cash Discounts $50

Aug. 19 Accounts Receivable (Tux Co.) $4,800 Sales Revenue $4,800 credit terms of n/10, FOB shipping point, invoice dated August 19. Cost of goods sold $2,400 Inventory $2,400

Aug. 22 Sales Allowances $500 Accounts Receivable (Tux Co.) $500

Aug. 29 Cash $4,257 Cash Discounts $43 Accounts Receivable $4,300

Aug. 30 Accounts Payable (Aron Company) $7,300 Cash $7,300

8 0

3 years ago

The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can Quest

Lelechka [254]

Answer:

D) control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.

Explanation:

Firms competing in perfectly competitive markets are price takers, meaning that they cannot set the price of their products or services, but monopolists can actually set the price of their products or services because their market power is high enough to do so. Also, a monopolist can choose to lower or increase its output depending on the resulting profits.

This excessive market power is the reason why natural monopolies are usually regulated by the governments and many monopolistic firms are forced to split into smaller firms that compete against each other.

7 0

3 years ago