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kherson [118]
3 years ago
9

Gen-Fast Shoes wants to expand internationally and is deciding if its line of tennis shoes can be sold at a high price in Europe

. One way for Gen-Fast Shoes to assess this is to determine whether these types of shoes in the foreign market offer customers greater.
a. cost.
b. exports.
c. value.
d. competition.
e. production.
Business
1 answer:
bezimeni [28]3 years ago
4 0

Answer: value

Explanation:

From the question, we are informed that Gen-Fast Shoes wants to expand internationally and is deciding if its line of tennis shoes can be sold at a high price in Europe.

One way for Gen-Fast Shoes to assess this is to determine whether these types of shoes in the foreign market offer customers greater value.

Value simply means the worth of something. When people realize that the tennis shoes are worth it, it'll command a high value.

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Plummer Industries purchased a machine for $43,800 and is depreciating it with the straight-line method over a life of 8 years,
tensa zangetsu [6.8K]

Answer:

$2,580

Explanation:

Depreciation = (Cost - Residual Value)/ Useful life

Yearly depreciation = ($43-800 - $3000)/8 = $5100

At the end of Year 5, total depreciation would be = $5100 X 5 = $25,500

Net book value at the end of year 5 = $43,800 - $25,500 = $18,300

Year 6, the extra ordinary repair that extended the useful life would be capitalized. Book value = $18,300 + $7,500 = $25,800

As 5 years have been expended, the remaining useful life would be 15-5 = 10 years

Depreciation expense year 6 = $25,800/10 = $2,580

7 0
3 years ago
What is one drawback of pure competition compared to monopolies?
frutty [35]

Answer:

D. Pure competition spreads resources between many different

firms.

Explanation:

Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include

  • There are no dominant suppliers.
  • There is ease of entry and exit into the market
  • Suppliers/firms are price takers.

In pure competition, resources are shared among the many competing firms in the industry, unlike in a monopoly that has only a single supplier. Resources include raw materials and profits.

8 0
3 years ago
Read 2 more answers
During 2020 the Pharoah Company had a net income of $85100. In addition, selected accounts showed the following changes: Account
PSYCHO15rus [73]

Answer:

Cash provided by operating activities $84,700

Explanation:

The computation of the amount of cash provided by operating activities is shown below:

Net income  $85,100

Add: depreciation expense $1,400

Less: increase in account receivable -$2,700

Add: Increase in account payable $900

Cash provided by operating activities $84,700

3 0
3 years ago
Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method f
Umnica [9.8K]

Answer:

Reason : To ensure constant flow of cash

Explanation:

<u>Accrual Basis of accounting</u> records transactions when they meet definition and recognition criteria of Assets, Liabilities,Equity, Expense and Incomes.

This is different from<u> cash-basis accounting</u> which records transactions at the receipt or payment of cash.

Because of <em>timing</em> difference, the cash transactions (cash basis) can happen a late than the day of recognition of the elements (accrual basis).

Hence Revenue services demand that income tax be calculated on accrual basis to ensure a constant flow of cash whenever an entity transact.

8 0
3 years ago
The president and CFO of Spellman Transportation are having a disagreement about whether to use market value or book value weigh
Setler79 [48]

Answer:

Difference = 2.36% (Option e)

Explanation:

Formula:

WACC = Re*(E/V) + Rd*(D/V)*(1-t)

<u>Data (In Million)                  Book Value                 Market Value </u>

E = Equity                           $65.00                        $225.00 ($22.50 x 10)

D = Debt                             $45.00                        $50.00

V = Value = E + D               $110.00                      $275.00

Re = Equity Rate                14%                            14%

Rd = Debt Rate                   6%                              6%

T = Tax Rate                      40%                             40%

WACC Book Value:

WACC = 14%*(65/110) + 6%*(45/110)*(1-0.40)  

WACC = 8.27273% + 1.47273%

WACC = 9.75%

WACC Market Value:

WACC = 14%*(225/275) + 6%*(50/275)*(1-0.40)  

WACC = 11.45455% + 0.65455 %

WACC = 12.11%

Difference = 12.11% - 9.75 = 2.36% (Option e)

8 0
3 years ago
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