Creating a customer profile helps identify markets because the information on it is too persuade the buyer, customer or Purchaser. I'm in 6th grade don't judge x
Answer:
The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.
Explanation:
According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.
Answer: Tentacle's total fixed costs are: $65400.
Explanation: The fixed components of the information provided by Tentacle Television Antenna Company are:
-Janitor's salary $4000
-Property taxes $15000
-Equipment depreciation (straight-line) $22000
-Factory insurance $14000
-Factory manager's salary $10400
So: 4000 + 15000+ 22000 + 14000 + 10400 = <u>$65400.</u>
Answer:
The sustainable growth rate is 16.52%
Explanation:
To compute the substantial growth rate, first, we have to calculate the retention ratio. The formula to compute the retention ratio is shown below:
= 1 – payout ratio
= 1 – 0.16
=0.84 or 84%
Now, we use the formula of substantial growth rate which is shown below:
= (Return on equity × retention ratio) ÷ { 1 - (Return on equity × retention ratio)}
where,
Return on equity = (Net income ÷ total equity) × 100
= ($3,640 ÷ $21,560) × 100
= 16.88%
= (16.88% × 84%) ÷ ( 1 - 16.88% × 84%)
= 0.141792 ÷ (1 - 0.141792 )
= 0.141792 ÷ 0.858208
= 0.1652 or 16.52%
