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True [87]
3 years ago
7

Jodi owns a business that designs and creates lingerie. In an effort to get her product into as many stores as possible, jodi ha

s been lenient on the terms of collection, allowing stores at least 30 days credit. As a result, it is taking her too long to collect payments and she has inadequate cash flow. What is the most likely cause of jodi's business difficulties?
Business
2 answers:
Delicious77 [7]3 years ago
6 0

Answer:

Poor working capital management

Explanation:

Working capital management is a business operation strategy that monitors the maintenance of sufficient balance between the current assets and liabilities so that the company does not run out of liquidity at any point in the course of operation.

Receivables and cash management are two major components of working capital.

When debtors delay in paying , this will definitely cause a strain on the liquidity of the company , most especially when the creditors are demanding for their own payment as well as other financial obligation arising.

Anna007 [38]3 years ago
3 0

Jodi is not adequately managing the financial aspects of her business.

By being too lenient with the days credit, she is effectively damaging her business' cash flow.

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3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $22,000 cash; (b)
Fofino [41]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $22,000

Accumulated depreciation-machine Dr, $148,800

($201,600 - $23,040 ÷ 6 × 5)

Loss on Sale of Machine Dr, $30,800

                 To Machine $201,600  ($192,000 + $8,000 + $1,600)

(To record Sale of the machine)

2. Cash Dr, $88,000

Accumulated depreciation-machine $148,800

($201,600 - $23,040 ÷ 6 × 5)

          To Gain on Sale of Machine $35,200

          To Machine $201,600

(Being Sale of the machine is recorded)

3. Cash Dr, $32,500

   Accumulated depreciation-machine Dr, $148,800

   Loss on disposal of Machine $20,300

                To Machine $201,600

(Being Sale of the machine is recorded)

7 0
3 years ago
Which type of market research data is Roland about to analyze? Roland works as a researcher for his manufacturing firm. He has c
lozanna [386]

Answer:

Roland works as a researcher for his manufacturing firm. He has conducted primary research to collect relevant market research data that will help his firm. He decided to use mathematical and statistical tools to analyze the data because the data is in nature.

Roland is about to analyze primary market research data.

Explanation:

Primary data are always in a state of nature.  Primary data are collected by Roland before analysis are from first-hand or primary sources.  For Roland to acquire the data, he must use primary research methods like surveys, interviews, or experiments. Because primary data are acquired with the research project in mind and directly from primary sources, they are contrasted with secondary data.  Secondary data were acquired by some other researchers and used in their analyses before being collected by another researcher as a basis for research continuation.

8 0
2 years ago
Ignoring taxes what is the effect on earnings in the year after the shares are granted to executives
ipn [44]

Answer: C. $40 million.

Explanation:

By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.

The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.

Total compensation = No. of shares * fair value of shares

= 15,000,000 * 8

= $120,000,000

Apportioned over 3 years;

= 120,000,000/3

= $40,000,000

4 0
3 years ago
Larry lives in Chicago and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of
OLga [1]

Answer:

a)

1. Explicit cost

2. Implicit Cost

3. Implicit Cost

4. Explicit cost

b)

Accounting Profit is $62000.

Economic Profit is -$3000. (a loss of $3000)

Explanation:

a)

Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.

Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.

1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>

2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>

3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>

<u />

4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>

<u />

b)

Accounting profit = Total Revenue - Total explicit cost

Economic profit =  Total revenue - (Total Explicit Cost + Total Implicit Cost)

Accounting Profit = 793000 - 430000 - 301000 = $62000 profit

Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss

6 0
3 years ago
You are considering investing in one of the these three stocks:Stock Standard Deviation BetaA 20% 0.59B 10% 0.61C 12% 1.29If you
Drupady [299]

Answer:

The correct option is B.

Explanation:

Risk aversion is a situation where investor like returns and dislike the risk. The higher the risk, higher the expected return an investor will demand.

In this situation, will look at the standard deviation (SD). The larger the SD, it states that outcome will be dispersed widely and smaller SD, states that the outcome or result will be more tightly cluster around the expected value. So, because of this will be choosing the Stock B for isolation and Stock A for portfolio which well diversified.

4 0
3 years ago
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