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4 years ago

7

With a(n) _______ financial statement, the accountant has put the information into the required format and performed a limited r

eview of the information provided by managemen

1 answer:

zheka24 [161]4 years ago

6 0

I’m not rlly sure what this answe is

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Exhibit 15.1 Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm'

FrozenT [24]

Answer:

difference between ROEs = 10.83% (restricted) - 9% (relaxed) = 1.83%

Explanation:

total annual sales = $4,400,000

EBIT = $150,000

net income = $150,000 x (1 - 40%) = $90,000

restricted policy:

asset turnover = 2.5

sales = $3,740,000

EBIT = $135,000

net income = $81,000

assets = $3,740,000 / 2.5 = $1,496,000

equity = $1,496,000 x 50% = $748,000

ROE = $81,000 / $748,000 = 10.83%

relaxed policy:

asset turnover = 2.2

sales = $4,400,000

EBIT = $150,000

net income = $90,000

assets = $4,400,000 / 2.2 = $2,000,000

equity = $2,000,000 x 50% = $1,000,000

ROE = $90,000 / $1,000,000 = 9%

difference between ROEs = 10.83% - 9% = 1.83%

4 0

4 years ago

why does it not make any Economic sense to produce in stage one and stage three of short run production function

galina1969 [7]

Answer:

Stage 1

Stage one is the period of most growth in a company's production. In this period, each additional variable input will produce more products. This signifies an increasing marginal return; the investment on the variable input outweighs the cost of producing an additional product at an increasing rate. As an example, if one employee produces five cans by himself, two employees may produce 15 cans between the two of them. All three curves are increasing and positive in this stage.

Stage 2

Stage two is the period where marginal returns start to decrease. Each additional variable input will still produce additional units but at a decreasing rate. This is because of the law of diminishing returns: Output steadily decreases on each additional unit of variable input, holding all other inputs fixed. For example, if a previous employee added nine more cans to production, the next employee may only add eight more cans to production. The total product curve is still rising in this stage, while the average and marginal curves both start to drop.

Stage 3

In stage three, marginal returns start to turn negative. Adding more variable inputs becomes counterproductive; an additional source of labor will lessen overall production. For example, hiring an additional employee to produce cans will actually result in fewer cans produced overall. This may be due to factors such as labor capacity and efficiency limitations. In this stage, the total product curve starts to trend down, the average product curve continues its descent and the marginal curve becomes negative.

6 0

3 years ago

John and Joan are married and want to make cash gifts to their children (2), their children's spouses (2), and their grandchildr

IgorLugansk [536]

The answer is $0.00 (third option).

Explanation:

During the year of 2018, the annual exclusion of both federal and state tax to cash gifts was up to $15,000 per individual. <em>Annual exclusion</em> means that there's up to a certain amount of money that can be gifted without being taxable. In this case, John and Joan's cash gift falls within the limit.

When couples gift money to their family members, the limit is precisely $15,000 per relative, individually; meaning the can gift up to a total of $60,000 without being subject to gift tax.

3 0

4 years ago

Fixed costs are $240,000 and the contribution margin is 48 percent. what is breakeven sales revenue?

I am Lyosha [343]

Answer:

20000

Explanation:

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3 0

3 years ago

Create a Crow's Foot ERD for each of the following descriptions. (Note: The word many merely means "more than one" in the databa

Lubov Fominskaja [6]

Answer:

Explanation:

an entity relationship diagram is a graphical representation of entities and their relationship to each other. it is usually used for business needs.

see more information to the question below in the attachment.

7 0

4 years ago