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3 years ago

Which of the following is true of profit maximization?

Business

1 answer:

denis23 [38]3 years ago

8 0

Answer:

Profit maximization should be achieved through legal and ethical means.

Explanation:

In simple words, all the decisions whether investment or financing etc. are focused on maximizing the profits to optimum levels. Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits

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Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss

Ronch [10]

Answer and Explanation:

The journal entries are shown below:

1. Bank Dr $36,000,000 (36 million × $1)

To Share application $36,000,000

(Being the application received)

2. Share application $36,000,000

To Share capital $30,000,000

To bank $6,000,000

(Being the allotment is recorded)

3. Share allotment $30,000,000

To SHare capital $30,000,000

4. Bank Dr $25,000,000

To Share allotment $25,000,000

(being allotment is recorded)

5. Share capital $10,000,000

To SHare forfeited $5,000,000

To Share allotment $5,000,000

(Being share forfetied is recorded)

6. Bank Dr $9,500,000

Share forfeited Dr $500,000

To Share capital $10,000,000

(Being share forfeited is recorded)

7. Share forfeited Dr $4,500,000

To Bank $4,500,000

(Beng share forfeited is recorded)

4 0

3 years ago

Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called

Gekata [30.6K]

Answer:

$1,500

Explanation:

Given that,

Sales = $9,000

Operating costs = $6,000

Depreciation = $1,500

Interest rate = 7%

Federal-plus-state income tax rate = 40%

Operating income or EBIT:

= Sales - Operating costs - Depreciation

= $9,000 - $6,000 - $1,500

= $1,500

Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.

4 0

3 years ago

BuzzInc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should this ga

WITCHER [35]

Answer:

The gain should be deducted from net profit before tax and interest while calculating cash flows from operations and the cash proceeds is shown under investing activities as positive cash flow.

Explanation:

Since the cash flow is about actual cash received in period,the gain is irrelevant.But the gain must have been added in income statement in arriving at net income,hence in order to avoid double counting the gain impact should be eliminated whereas the cash received from the disposal is brought in down the line under investing activities as cash inflow.

The overall impact of this transaction on cash flow statement is illustrated below:

Gain -$45000

Cash proceeds $230000

Net impact $185000

The transaction has $185000 impact on the cash flow statement as a whole.

3 0

3 years ago

Which law is referred to as the credit cardholders Bill Of Rights ?

swat32

Answer: credit CARD act

Hope this helps!!!

4 0

3 years ago

Read 2 more answers

Imagine you live on the planet Krypton. The loanable funds market on Krypton is thriving and life is good. However, the planet i

sergij07 [2.7K]

Answer: fall; decrease

Explanation:

People save in order to be able to consume in future. If it is discovered that there will be no fixture, there would be no need to save. The supply of loanable funds would therefore decrease as people stopped saving.

Because there is reduced loanable funds, less investments would be done as these require loanable funds. With less investments being done, the economic output will decrease.

5 0

2 years ago