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2 years ago

The following information pertains to the three divisions of Marlow Company:

Business

1 answer:

lubasha [3.4K]2 years ago

5 0

Answer:

The correct option is B

Residual income = ($9000)

Explanation:

Residual Income is measure of how much a division or a part of a business is able to generate over and above the company-wide opportunity cost of capital.

A division with a controllable over and margin over and above the cost of fund is evaluated to be profitable .

Residual income = Controllable margin - (cost of capital(%)× operating assets)

Cost of capital = Target ROI

Residual income for Division X

= 36,000 - (15%× 300,000 )

= ($9000)

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A way that traditional retailers can compete with online retailers is to: Multiple choice question. use franchises that deliver

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In order to compete with the online retailers, the traditional retailers can use franchises that deliver, require an administered system for all, and increase their market share.

<h3>Who is a retailer?</h3>

A manager or owner of a business organization or a unit that specializes in selling of products to their customers, which they procure from the supplier, is known as a retailer.

Hence, options A, C and D hold true regarding the traditional retailers.

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1 year ago

If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? write an exponential f

Alex Ar [27]

The compound interest amount after 5 years be $6,083.26.

<h3>What is compound interest?</h3>

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.

Compound interest is when you receive interest on both your interest income and your savings.

If this value was compounded in 5 years, then we are going to utilize the compound interest formula to solve it.

$A = p(1+r)^n$

Where A be the amount accumulated for the entire period.

p be the Money invested

r be the Interest rate per year

n be the period the money was invested.

$A = 5000(1+4/100)^5$

The exponential function is

$A=5000*1.04^5$

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= 6,083.264512

The amount after 5 years be $6,083.26

The compound interest amount after 5 years be $6,083.26.

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4 0

1 year ago

Please prepare the multi-step income statement, the statement of stockholders' equity and the classified balance sheet.

goldenfox [79]

Answer:

Operating Income = $53,000

Net Income = $39,000

Ending balance of common stock = $300,000

Ending balance of retained earnings = $95,000

Ending total stockholders' equity = $395,000

Total current assets = $198,000

Net long-term assets = $265,000

Total long-term assets = $285,000

Total assets = $463,000

Total liabilities = 68,000

Explanation:

a. Multi-step Income Statement

Multi-step Income Statement put each revenues and expenditures items into different categories to show gross profit and net income. This can be prepared as follows:

Multi-step Income Statement

For the year ended

Details $

Sales Revenue 545,000

Sales Discount (45,000)

Net Sales Revenue 500,000

Cost of Goods Sold (400,000)

Gross profit 100,000

Operating expenses:

Rent Expense (12,000)

Depreciation Expense (10,000)

Salaries Expenses (25,000)

Operating Income 53,000

Non-operating expenses:

Interest Expense (6,000)

Income before tax 47,000

Income Tax Expense (8,000)

Net income 39,000

Dividend paid (4,000)

Retained earning for the year 35,000

b. Changes in Retained Earnings

Details $ 

Beginning retained earnings 60,000

Retained earning for the year 35,000

Ending retained earnings 95,000

c. Movement in Common Stock

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock  300,000 

c. Statement of stockholders' equity

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock 300,000

Ending retained earnings 95,000

Ending total stockholders' equity 395,000

d. Classified Balance Sheet

Classified balance sheet shows each of the componets of assets, liabilities and equity. This can be prepared as follows:

Classified Balance Sheet

As at the year ended

Details $ $ 

Long-Term Assets

Buildings 65,000

Equipment 220,000

Total Long-Term Assets 285,000

Accumulated Depreciation 20,000

Net Long-Term Assets 265,000

Current Assets

Cash 12,000

Accounts Receivable 150,000

Supplies 36,000

Total Current Assets 198,000

Total Assets 463,000

Financed by:

Ending total stockholders' equity 395,000

Current Liability

Accounts Payable 28,000

Long-Term Liability

Notes Payable (Due in 2years) 40,000

Total Liabilities 68,000

Total Equity $ Liabilities  463,000 

Conclusion

As both the Total Assets and Total Equity and Liabilities are each equal to $463,000, it implies the financial statement is accurately prepared since both must always be equal.

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2 years ago

Conducting ourselves ethically and within the law of business practices

Leno4ka [110]

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2 years ago

Pick the correct statement from below. a. Stocks can only be assigned one dividend growth rate. b. Preferred stocks generally ha

Pani-rosa [81]

Answer:

e. Stocks can have negative growth rates.

Explanation:

According to the given options, the option e is correct as the growth rate could never be zero and positive as it is not necessary that the growth rate should be same or constant

But in the other cases the things can be changed like the stock could assigned to more than one dividend growth rate, etc

Therefore the option e is correct

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2 years ago