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kow [346]
3 years ago
8

At the end of Year 1, the balance sheet for the Rich Food Restaurant showed cash at $20,000. At the end of Year 2, the balance s

heet showed $40,000 in cash. A horizontal analysis of the balance sheets would show the absolute difference between the two years as:
Business
1 answer:
san4es73 [151]3 years ago
8 0

Answer:

$20,000

Explanation:

When a financial statement analysis technique shows the changes of income statement or balance sheet items over the period of time with the same financial statements, it is called Horizontal Analysis. It shows the firm's capability of either increasing or decreasing of assets or expenses over the period. Here,

                                      Balance Sheet

Account Title      Year 1        Year 2        Changes (Increase/Decrease)

Cash                 $20,000    $40,000         $20,000 Increase

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Swifty Corporation expects direct materials cost of $6 per unit for 150000 units (a total of $900000 of direct materials costs).
OLga [1]

Answer:

Explanation:

hope this helps

5 0
3 years ago
Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
3 years ago
The ratio of an insurance company's net profit to policyholders' surplus is called
Yuri [45]
I don't know the answer. I just want you to know that. Good day mate.
8 0
3 years ago
The difference between situational interviews and behavioral description interviews is that: a. behavioral description interview
Sindrei [870]

Answer:

C) Situational interviews focus on hypothetical incidents rather on actual work incidents

Explanation:

situational interview give rooms to individual that is going through interview from interviewer to pass across his/ her expertise, talent as well as skills that could be used in overcoming any challenges that come with the job.

Behavior Description Interview on other hand utilize premise which goes that behavior of the past can be use in predicting the future, it uses a techniques that finds out what applicant has done in a kind similar situation in the past. It should be noted that one main difference between situational interviews and behavioral description interviews is that Situational interviews focus on hypothetical incidents rather on actual work incidents

8 0
3 years ago
You want to invest $20,000 today to accumulate $32,000 for graduate school. If you can invest at an interest rate of 10% compoun
uranmaximum [27]

Answer:

N = 5 years

Explanation:

At first we have to calculate the number of periods to determine at which part of the table we should look at.

Given,

PV = $20,000

FV = $32,000

Interest rate, i = 0.10 (10%)

Number of periods, n = ?

We know, Future value, FV = PV × (1+i)^{n}

or, $32,000 = $20,000 × (1 + 0.10)^{n}

or, 1.6 = 1.10^{n}

As the factor is 1.6, we will look at the following image which is the FV factor table to find the number of periods.

We can find it in a different way too.

log 1.6 = n log 1.10

or, n = \frac{log 1.6}{log 1.10}

or, n = 4.93 years

Therefore, n = 5 years

8 0
3 years ago
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