Compared to the whole-report technique, the partial-report procedure involves ____

atrade foods inc. is a chain of supermarkets where part of employees' monthly paychecks depend on customer satisfaction. 80 per

jenyasd209 [6]

In this case where the company is concerned about the satisfaction of the employees, Atrade foods inc. is committed to total quality management. (TQM).
TQM is an organizational approach to success in which the goal is the company to be continuously improves, with improved quality and performance.

5 0

3 years ago

In 2007, Wagner Associates appropriated $65,000 of retained earnings to satisfy the restrictive covenant of a loan agreement. Wh

Dmitry [639]

Answer:

The financial statements effects of the appropriation are as follows:

a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.

b) Cash balance will also reduce by $65,000 in the Balance Sheet.

Explanation:

Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.

Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.

8 0

3 years ago

Read 2 more answers

Titan Mining Corporation has 7.6 million shares of common stock outstanding, 280,000 shares of 4.5% preferred stock outstanding,

aivan3 [116]

Answer:

A. The Capital structure is : 4.23 % - Equity, 6.59 % - Preferred Shares and 89.17 % - Debt

B. The firm should discount the project’s cash flows at 4.45 %.

Explanation:

Total Market Value = Market Value of Equity + Market Value of Debt + Market Value of Preferred Shares

Market Value of Equity = 280,000 shares × $61

= $17,080,000

Market Value of Preferred Shares = 280,000 shares × $95

= $26,600,000

Market Value of Debt = 165,000 bonds × $2,000 × 109%

= $359,700,000

Total Market Value = $403,380,000

Capital Structure :

Weight of Equity = $17,080,000 / $403,380,000 × 100

= 4.23 %

Weight of Preferred Shares = $26,600,000 / $403,380,000 × 100

= 6.59 %

Weight of Debt = $359,700,000 / $403,380,000 × 100

= 89.17 %

Thus, the market value capital structure is : 4.23 % - Equity, 6.59 % - Preferred Shares and 89.17 % - Debt

Firms use the Weighted Average Cost of Capital (WACC) to discount the project’s cash flows.

Cost of Debt, r

PV = $2000 × 109 % = - $2,100

PMT = ($2,000 × 5.9%) ÷ 2 = $59

n = 19 × 2 = 38

P/YR = 2

FV = $2,000

r = ?

Using a Financial Calculator, Pretax cost of debt, r is 5,47 %

After tax cost of debt = Interest × ( 1 - tax rate)

= 5,47 % × ( 1 - 0.25)

= 4.10 %

Cost of Equity

Cost of Equity = Return on Risk Free Security + Beta × Return on Risk Premium Portfolio

= 3.5 % + 1.15 × 7.1%

= 11.67 %

Cost of Preference Stock

Cost of Preference Stocks = 4.5%

WACC = ke(W/V) + kd(D/V) + kp(P/V)

= 11.67 % × 4.23 % + 4.10 % × 89.17 % + 4.5% × 6.59 %

= 4.45 %

7 0

4 years ago

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei

kenny6666 [7]

Answer:

Given that,

Petty cash fund on September 1 = $250

Office Supplies = $73

Merchandise inventory = $137

Miscellaneous expenses = $22

Fund has a balance = $18

When Petty Cash fund is reimbursed,

the expenses incurred through Petty Cash are recorded by debiting those expense.

Therefore, all the expenses incurred to be debited from the accounts.

Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73.

5 0

3 years ago

Assume we are looking at the electric car market. How would a major increase in gas price affect this market?

Sauron [17]

Answer:

Demand increases

Explanation:

There are replacements for petrol and electric vehicles. So, as petrol prices grow, sales of electric vehicles will grow. Market curve will move to the right and that both prices and quantities will rise.

5 0

4 years ago

Compared to the whole-report technique, the partial-report procedure involves _____.