A pre-sweetened breakfast cereal would most likely be in the DECLINE stage of the product life cycle.
At the decline stage of a product like cycle, the number of product sold usually drop significantly, because of this, manufacturers usually look for a mean of modifying their product so that the consumers will continue buying it. For instance, a cereal manufacturer may decide to add sugar to his product so that it will continue to be bought by the consumers.<span />
Answer: B.both stocks are equally good investments
Explanation:
The options are;
A.it is better to buy shares in Bad Firm
B.both stocks are equally good investments
C.it is better to buy shares in Good Firm
D.both stock prices react equally to the same information
From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.
<u>Answer:</u> Option 1 After income from continuing operations.
<u>Explanation:</u>
A disposal account shows the profit or loss from the sale of any asset. When the sale price is higher than the book value of the component then it is a gain. When the sale price is less than book value then it is a loss.
Loss from the sale of component will reduce the income of the business. When there is a loss it is debited in the income statement. This appears below the operations income and it is deducted from the revenue to show the actual value of the revenue.
Answer:
Entry for the repayment involve a Debit of Note Payable of $1,060 and a Credit of Cash of $1,060.
Explanation:
By January 30 , 2 months interest would have expired and the journal entries are as follows :
December 31
Interest expense $30 (debit)
Note Payable $30 (credit)
January 30
Interest expense $30 (debit)
Note Payable $30 (credit)
Thus the <em>repayment will be at the carrying cost </em>of the note payable as follows :
Note Payable $1,060 (debit)
Cash $1,060 (credit)
Conclusion :
Entry for the repayment involve a Debit of Note Payable of $1,060 and a credit of Cash of $1,060.
Answer: $20,455.66
Explanation:
These are fixed payments per year so it is an annuity.
The present value annuity factor for a discount rate of 10% and 6 years duration is 4.3553.
The present value of the investment is therefore;
= 65,000 * 4.3553
= $283,094.50
The special payment in 2 years from today will be;
Special payment = future value of difference between investment amount and investment present value
= (300,000 - 283,094.50) * ( 1 + 10%)^2
= $20,455.66