A drop in the market price of a firm's common stock will immediately affect its:

Omar and Janet decide to revise their budget for Rings and Things. What suggestions about labor

Citrus2011 [14]

Answer:

Review labor costs downwards

Explanation:

Janet and Omar should consider revising their budget for labor downwards. In the current state, labor costs are $1000, which is approximately 57 percent of all costs. As a rule of thumb, labor costs should be between 25 to 35 percent of total costs. This implies that Janet and Omar's labor costs are very high in relation to the other costs.

Janet and Omar should aim for a profit. Ideally, a 25 to 30 percent profit is a good target for such a business. For this to happen, they need to cut down labor to between $300 to a maximum of $400.

5 0

3 years ago

1. Do you believe that auditors should be held liable for failing to discover fraud in situations such as ZZZZ Best, where top m

Gnoma [55]

Answer:

1.No,the Auditors should not be held liable for failing to discover the fraud.

2.The red flags in ZZZZ Best case are Account receivables,Current liabilities and Notes payables.

Explanation:

1. The auditors responsibility is to state if the financial statement prepared shows a true and fair view,and to vet compliance to statutory guidelines.They may detect fraud in the course of their audit,they can recommend but are not responsible to put control measures in place to prevent such. The management are responsible for the preparation of the financial statement and safeguarding of asset, consequently, liable for the content therein.

2. The sales were made on cash basis before the period in question,a major change in policy as such should have been well measured

3 0

3 years ago

An example of income that would be included in the underground economy but not included in the GDP is

DENIUS [597]

<span>GDP, or Gross Domestic Product, is typically defined as services, products, goods produced and bought by an national economy in a specific time frame, and is measured comparatively to a time period before. Bitcoin is an example of an underground currency that is not part of the GDP, due to no production of goods or services for the nation and not regulated by government.</span>

7 0

3 years ago

The company started when it acquired $38,000 cash by issuing common stock. Purchased a new cooktop that cost $14,200 cash. Earne

Bad White [126]

Answer:

Horizontal Statements Model

Balance Sheet Income Statement Statement of

Assets = Liabilities + Equity Revenue - Expenses = Profit Cash Flows

1. +$38,000)= 0 + $38,000 FA

2. +$14,200-$14,200 = L + E IA

3. +$23,400 = L + E +$23,400 - $23,400 OA

4. -$12,500 = L + E - $12,500 -12,500 OA

5. -$2,140 = L + E - $2,140 - 2,140 None

Total $46,760 = Liabilities + $38,000 + $8,760

Where A = assets

L = Liabilities

E = Equity

Explanation:

a) Data and Analysis:

Cash $38,000 Common stock $38,000

Cooktop $14,200 Cash $14,200

Cash $23,400 Sales revenue.

Cash $12,500 Salaries expense $12,500

Depreciation $2,140 ($14,200 - $3,500)/5

7 0

3 years ago

JRN Enterprises just announced that it plans to cut its dividend from $3.00 to $1.50 per share and use the extra funds to expand

choli [55]

Answer:

$19.32

Explanation:

4 0

3 years ago