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3 years ago

Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.

Business

1 answer:

Elis [28]3 years ago

5 0

Answer:

–$32

Explanation:

Rosnan Industries' 2013 free cash flow (FCF)

Details $

Net income 713

Add Non-Cash Expenses:

Depreciation and amortization 100

(Increase) decrease in non-cash current assets:

Decrease in accounts receivable (300 - 275) 25

Increase inventories (375 - 250) (125)

Increase (decrease) in current liabilities:

Increase in total current liabilities (375 - 210) 165

Capital expenditure:

Increase in net plant and equipment (2,300 - 1,490) (810)

Depreciation and amortization (100)

Free cash flow  (32) 

Therefore, Rosnan's 2013 free cash flow (FCF) minus $32.

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soldier1979 [14.2K]

If your a busy small business owner, taking time away from your store makes you less efficient. The trade offs for using this premium service are 1. your spending more money 2. control over quality. Vise versa if your paying more for the “best groceries” then that may not be an issue. Also be aware that another issue is stocking, going to the store yourself does not guarantee that the store will have all items in stock when you go. 3. Time, taking time to grocery shop takes away from your business or the cost of an employee to watch the business or do the shopping for you having you rely on a third party’s judgment. 4. Gas, the cost of gasoline to go to and from the store. If all these are added up then you are essentially paying more for your “in person” groceries as it is. Choosing to grocery shop yourself saves you money (although how much? Once everything is taken into account?) but again the time it takes away is significant. For a busy small business owner time is extremely important and this is why the trade off of cost or added expenses for groceries may be worth it. (I hope this helps guide you in answering this question).

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3 years ago

True Tomato Inc. makes organic ketchup. To promote its products, this firm decided to make bottles in the shape of tomatoes. To

Amanda [17]

Answer:

The answer is: Physical asset specificity

Explanation:

In a business to business relationship, physical asset specificity refers to an asset, or product or service designed to fit a particular or specialized customer's need.

In this case, True Tomato needs a very specific type of bottle that probably no other ketchup manufacturer may use or want to use. So their bottle supplier specifically manufactures the tomato shaped bottle to meet True Tomato's specific requirements.

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3 years ago

On June 1, 2018, Perfect Performance Cell Phones sold $ 17,000 of merchandise to Ashton Trucking Company on account. Ashton fe

inn [45]

Answer:

See answers and explanation below.

Explanation:

1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.

Date Details Dr ($) Cr ($)

1 Jun. 18 Account receivable 17,000

Sales revenue 17,000

To record sales to Ashton Trucking Company on account.

15 Jul. 18 Cash 6,000

Account receivable 6,000

To record cash received from Ashton Trucking Company.

5 Sep. 18 Bad debt 11,000

Account receivable 11,000

To record accounts receivable from Ashton written off.

5 Mar. 19 Account receivable 11,000

Bad debt 11,000

To record transfer of bad bad back toaccounts receivable.

5 Mar. 19 Cash 11,000

Account receivable 11,000

To record cash received from Ashton Trucking Company.

2. What are some limitations that High Performance will encounter when using the direct write-off method?

a. It is not in line with the matching principle. This is because bad debt expenses will not be reported in the same period they are incurred and might not be realized as bad expenses until the following period.

b. It can cause inaccurate balance sheet as it does give the actual amount of accounts receivable of a company.

c. It method of recording violates GAAP and financial statements does to present the actual financial performance of the business.

d. It overstates accounts receivable as the full amount of amount owed to the company from credit sales will be reported as accounts receivable.

6 0

3 years ago

A builder only has a few properties available in a development. He feels that it is no longer necessary to have his onsite sales

USPshnik [31]

Answer:

An open listing

Explanation:

In real estate an open listing is one in which the owner of a property contracts more than one agent to sell the property. The agent with the winning bid will eventually sell the property.

The opposite of this is the exclusive listing where the property owner only engages one agent to sell the property.

In the given scenario the builder feels that it is no longer necessary to have his onsite sales agent market these properties and decides to list the properties with a local brokerage firm. Thereby allowing all of the local firms to market these properties.

This is an open listing

5 0

3 years ago

Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constan

White raven [17]

Answer:

the stock value per share is $53

Explanation:

The computation of the stock value per share is shown below:

Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )

= $175 Million ÷ ( (10% - 4%)

= $2,917

Now stock value per share is

= $2,917 ÷ 55 million shares

= $53 per share

Hence, the stock value per share is $53

8 0

3 years ago