Installment credit is when you borrow a fixed sum of money and agree to make monthly.
There are three main financial statements that can be affected by buying a piece of equipment for a company.
They are: (1) balance sheets; (2) income statements; and (3) cash flow statements
Balance sheets show what a company owns and what it owes at a fixed point in time so buying a piece of equipment will show an increase in the company’s assets and decrease in cash Income statements which shows how much money a company made and spent over a period of time will report an increase in the expenses resulting to a lower net income.
Cash flow statements which show a decrease in net cash due to buying of the equipment.
Answer:
- Compute the return on investment (ROI) for each center.
I - 18%
II - 26%
III - 40%
Explanation:
The ROI (Return on Investment), it's a financial ratio that measure the benefit that an investor will receive in relation to their investment cost.
Div. I
$884,340 Controllable margin
$4,913,000 Average operating assets
18%
Div. II
$2,065,180 Controllable margin
$7,943,000 Average operating assets
26%
Div. III
$4,850,800 Controllable margin
$12,127,000 Average operating assets
40%
Answer:
d. The firm will minimize its losses by shutting down.
Explanation:
The price multiplied the number of output is the revenue, which is less than the total cost as in this scenario. So this company is always lost.
Lost = number units x (cost – price)
The lost is as high as the number of unit produced.
Given the company do not have any room to improve the profit as it’s producing the profit-maximizing level of output; it’s the best for this firm to shut down.
The answer would be: On-the-job training
On-the-job training refers to a type of training that is aimed to make a trainee experience his soon-to-be job heads on.
This type of training will make the trainee has a big picture about his/her role and adjust his/her attitude accordingly.
