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dalvyx [7]
3 years ago
5

In the last decade or so, there has been a dramatic expansion of small retail convenience stores (such as 7-Eleven, Kwik Shop, a

nd Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?
Business
1 answer:
ELEN [110]3 years ago
6 0

Answer:

They are time saving, they are on hand near, and openened usually 24/7.

Explanation:

They are largely successful due to them being placed in areas of convenience and people aremore willing to buy expensive products if it will save them the time of going to asupermarket and getting what they need.

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The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exportin
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The Hi-Stakes Company

a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.

b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.

Explanation:

When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions.  However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.

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Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of
vesna_86 [32]

Answer:

Explanation:

From the given information: we are to:

a)  Prepare an income statement for Ponzi for today and for each of the next three quarters. Ignore taxes. (LO1)

An income statement involves depicts the achievement of a certain business over  a period of time .

The income statement for Ponzi for today and for each of the next three quarters is as follows:

                        Quarter 1      Quarter 2       Quarter 3        Quarter 4

Sales                   $0                  $550              $600             $0

 (-)

cost of goods       0                   $500              $500             $0

sold

Net income           0                  $50                 $100               0

We will see that  in the first and the fourth quarter ; the firm neither pay any cash to purchase goods nor collect cash for sales. Thus ; the cashflow will be zero in those instances and we will consider only the second and the fourth quarter for sales income and production cost.

SO:

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(b) What are the cash flows for the company today and in each of the next three quarters?

Cash flow is like a database that helps to keep tracks and records the cash inflows and cash outflows of a financial instrument.

The cash flow in each month is as follows:

                        Quarter 1      Quarter 2       Quarter 3        Quarter 4

Sales                   $0                  $550              $600             $0

 (-)

cost of goods       0                   $500              $500             $0

sold

Net income           0                  $50                 $100               0

Inventories         $1000          $500                   0                  0

Account

Receivables       0                    550                  600                0

Net working

capital                 $1000          $1050             $600                0

Change in WC   $1000           $50                 $450              $600

CashFlow           $1000          $0                  $550              $600

Hint:

The Cash flow = net income - change in net working capital

The net working capital = Inventory + Account receivables

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(c) What is Ponzi’s net working capital in each quarter? (LO1)

The net working capital in each quarter can be illustrated as :

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Inventories        $1000             $500              0                    $0

Account recei-    0                   $550              $600             $0

vables

Net working       $1000             $1050           $600               $0

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