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Scilla [17]
3 years ago
8

Warren Co. recorded a right-of-use asset of $780,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%

. The balance in the right-of-use asset after 2 years will be:
Business
1 answer:
VLD [36.1K]3 years ago
3 0

Answer: $624000

Explanation:

From the question, we are informed that Warren Co. recorded a right-of-use asset of $780,000 in a 10-year finance lease and that the interest rate charged by the lessor was 10%.

The balance in the right-of-use asset after 2 years will be calculated as:

= $780,000 - [($780,000/10) × 2]

= $780,000 - ($78000 × 2)

= $780,000 - $156,000

= $624000

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A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value
svet-max [94.6K]

Answer:

Therefore Expected Value of the information = $65,000+$62,000 - $10,000  = $117,000

Explanation:

If the market research survey is available for $10,000.

Using a decision tree analysis, it has been found that the expected monetary value with the survey is $65,000. The expected monetary value with no survey is $62,000.

<u>Then the expected value of the information from this sample is the expected value of each outcome and deducting the costs associated with the decision</u>

Therefore Expected Value of the information = $65,000+$62,000 - $10,000  = $117,000

7 0
3 years ago
Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute
KATRIN_1 [288]

Answer:

(1) Park's times interest earned is 13.

(2) Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

Explanation:

(1) Compute its times interest earned.

The times interest earned, also known as the interest coverage ratio, is a coverage ratio that calculates the proportionate amount of income that can be used to cover future interest expenses.

The times interest earned can be computed as follows:

Times interest earned = Income before interest expense and income taxes / Interest expense = $1,885,000 / $145,000 = 13

Therefore, Park's times interest earned is 13.

(2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad.

Because the ratio reveals how many times a company could pay interest with its pre-tax income, greater ratios are clearly better than lower ratios.

Since Park’s times interest earned of 13 is greater than its competitor’s times interest earned of 4, it therefore implies that Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

8 0
2 years ago
A company has determined that changes in price will not dramatically impact the number of sales they are able to make. What shou
tester [92]

Answer:

Sell at a somewhat higher price since customers will still purchase even at a higher price ( D )

Explanation:

The type of goods and services that changes in prices doesn't r affect the quantity/demand bought by the consumers are usually staple goods which are a necessity and not a want but a serious need. A company if after much research discovers that the demand for a particular product is unwavering( fixed ) they can increase the prices in order to maximize profits form the little amount of goods been produced/sold in the open market. while in other hand if the demand for a particular product is not stable any change in price can significantly affect the demand for the good or service leading to a loss for the company.

7 0
3 years ago
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
Ganezh [65]

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

  • choose strategic outsourcing
  • use taper integration

<h3>What is a vertical integration?</h3>

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

Missing options "

-choose strategic outsourcing

-use taper integration

-control every element of the industry value chain

-opt to become fully vertically integrated"

Read more about vertical integration

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7 0
1 year ago
Paul Rodriguez is the President of WV Railroad. His organization faces issues related to the environment, government regulation,
Ivanshal [37]

Paul Rodriguez who is the President of WV Railroad will need to rely primarily on his <u>Conceptual skills </u>to combat the challenges faced by his organization.

<h3>What are Conceptual Skills?</h3>

Conceptual skills refer to the competence and ability to see the overall organization, grasp how the various elements are interrelated, and analyze how the organization interacts with its external environment.

Conceptual skills also include the capacity to recognize and solve challenges. These abilities enable Presidents or managers of an organization to assess events and devise alternate strategies.

For Paul Rodriguez to combat the challenges faced by his organization, He needs to focus primarily on his conceptual skill as it gives him the ability to:

  • Make swift judgments. 
  • Think critically and
  • Come with a logical solution to those problems, 

Learn more about conceptual skills here:

brainly.com/question/4382381

3 0
2 years ago
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