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SOVA2 [1]
3 years ago
12

Beck Inc. and Bryant Inc. have the following operating data:__________.

Business
1 answer:
DiKsa [7]3 years ago
7 0

Answer:

a. Beck Inc. = 5.00  and Bryant Inc. = 2.50

b. Beck Inc. =  $100,000 and 100%  : Bryant Inc. =  $150,000 and 50 %

c. True.

Explanation:

Degree of Operating Leverage shows,  the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.

Degree of Operating Leverage = Contribution ÷ EBIT

Thus,

Beck Inc = $500,000 ÷ $100,000

              = 5.00

Bryant Inc. = $750,000 ÷ $300,000

                 = 2.50

<em>If Sales increased by 20% the effects on Incomes would be :</em>

Beck Inc = 20% × 5.00

              = 100%

              = $100,000 × 100%

              = $100,000

Bryant Inc.=  20% × 2.50

              =  50 %

              =  $300,000 × 50 %

              =  $150,000

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California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the compa
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Answer:

The journal entry to record the purchase of treasury stock would be:

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Treasury Stock       3,800  

         Cash                   3,800

Explanation:

In order to prepare The journal entry to record the purchase of treasury stock we would have to calculate the treasury stock as follows:

Treasury Stock=shares purchased*cost per share

Treasury Stock=100 Shares x $38.00 per share

Treasury Stock=$3,800

Therefore, The journal entry to record the purchase of treasury stock would be:

                           Debit ($) Credit ($)

Treasury Stock       3,800  

         Cash                   3,800

3 0
3 years ago
the 360 degree feedback performance appraisal system tries to improve performance ratings by forcing managers to :
olga nikolaevna [1]

Answer:

Include information from a wide range of sources in their reviews.

Explanation:

Performance appraisal refers to the evaluation of employees' performance by the human resource managers in an organization. The 360-degree feedback performance appraisal system is a type of performance appraisal that sources information about an employee from various sources, which ranges from subordinates, lateral and supervisory sources. This implies that the manager seeks to gain insight about the employee from his fellow employees, from his supervisors, his subordinates, and sometimes from external sources such as the customers who interact with that employee on a daily basis.

Most managers use this system of appraisal for developmental purposes and evaluation of an employee's performance. Information sourced can then be used to help the employees improve on their skills or promote/demote them.

5 0
3 years ago
When reimbursing the petty cash fund: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. No expense
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Answer: Appropriate expense account are debited

Explanation:

Here is the complete question:

When reimbursing the petty cash fund:

a. Cash is debited.

b. Petty Cash is credited.

c. Petty Cash is debited.

d. Appropriate expense accounts are debited.

e. No expenses are recorded

Petty cash funds are simply the little funds that is used by an organization or company to settle its minor expenses. Examples include expenses on postage stamp or snacks during meetings.

It should be noted that when reimbursing the petty cash fund, the appropriate expense account has to be debited.

3 0
3 years ago
Assume that Solo Company commenced operations on January 1, 2006, and it was granted permission to use the same depreciation cal
Musya8 [376]

Answer: c. The firm's cash position in 2006 and 2007 would increase.

Explanation:

Depreciation expense is heavily dependent on the useful life of the asset. The longer the useful life, the smaller the depreciation expense because the equipment is being depreciated over a longer period.

If the useful life is reduced from 15 to 10 years therefore, the depreciation expense would increase.

The Cash position of a company is calculated by adding back the depreciation to the Net income after taxes are paid because depreciation is not a cash expense.

If the depreciation is now larger (which it is) and is added back to the Net income, the cash position will therefore increase.

6 0
3 years ago
For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books onl
Fittoniya [83]

Answer: Disintermediation

Explanation:

Disintermediation is the withdrawal of funds from an intermediary financial institutions e.g savings and loan associations or banks in order to invest them directly. It is the reduction in using intermediaries between the producers and consumers.

From the question, Erudite stopped using an intermediary and started selling its books online. The main advantage of disintermediation is that the consumer saves money.

5 0
3 years ago
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