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4 years ago

What is the difference between patronage and the merit principle?

1 answer:

5 0

Patronage principle based its hiring and promotion system on political reasons while the merit principle employed the idea that hiring should be based on entrance examination and promotion. One of the major disadvantage of the patronage principle is that, it may end up employing people who are not qualify for the job. Merit principle choose based on qualifications.

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On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding. These shares were originall

Dovator [93]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

1. Treasury Stock $2,400 (100 Shares × $24)

To Cash $2,400

(Being treasury stock is recorded)

2. Cash Dr, $825 (25 shares × $33)

To Treasury Stock $600 (25 shares × Cost $24)

To Additional Paid in Capital-Treasury Stock $225

(Being the sale of acquired share is recorded)

3. Cash Dr, $550 (25 shares × $22)

Additional Paid in Capital-Treasury Stock Dr, $50

To Treasury Stock $600 (25 shares × Cost $24)

(Being the sale of acquired share is recorded)

4. Common Stock Dr, $250 (50 Shares × $5 par value)

Additional Paid in Capital-Treasury Stock Dr, $175 (225 - $50)

Retained Earnings Dr, $775

To Treasury Stock $1,200 ($2400 - $600 - $600)

(Being retired share is recorded)

6 0

3 years ago

The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are

Vinil7 [7]

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha, we need to do the following calculations

The interest amount is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

= $200,000 + $28,000

= $228,000

And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

3 0

3 years ago

Later movers do not face: entrenched competitors. reduced uncertainty over technologies. high growth markets. lower market uncer

Maksim231197 [3]

Later movers do not face high growth markets. Later movers are also referred to late followrs or later market entrants. These businesses enter the market after the market has been established. By joining the market later, they have an advantage because they can see what kinks have been worked out by other companies, what has worked and was hasn't worked.

5 0

3 years ago

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the com

jekas [21]

Answer and Explanation:

The preparation of the answer sheet is presented below;

Product Costs

Cost Item Direct Direct Manufacturing Period

Materials Labor Overhead Costs

Rent on factory

equipment $11,500

Insurance

on factory building $1,780

Raw materials $80,800

Utility costs for factory $920

Supplies for general office $320

Wages for

assembly line workers $59,700

Depreciation on office equipment $830

Miscellaneous materials $1,470

Factory manager’s salary $6,200

Property taxes on factory building $420

Advertising for helmets $14,900

Sales commissions $10,900

Depreciation on factory building $1,640

Total $80,800 $59,700 $23,930 $26,950

Now cost to produce one helmet is

= Total cost to produced ÷ number of helmets produced

= ($80,800 + $59,700 + $23,930) ÷ (10,000)

= ($164,430) ÷ (10,000)

= $16.44

5 0

3 years ago

Which of the following is an example of a cash outflow?

Lyrx [107]

Answer: Option A

Explanation: The amount of cash disbursed by the company in a specified time period, generally a year, is called cash outflow. In simple words, cash outflow is the amount of cash that left the company in the form of investments, operating expenses or other payments etc.

Initial investment in a project is a cash outflow that will further result in cash inflows in form of returns.

Thus, option A is correct.

4 0

3 years ago