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tankabanditka [31]
3 years ago
5

A company that packages and distributes fruit for on-the-go lunches has established a differentiation. they are packaged in such

a way that refrigeration is unnecessary and the fruit will not wilt or discolor. the chain starts when the manufacturer purchases fresh fruit from organically grown farms. then, the fruit is skinned and cut into convenient squares for on-the-go eating. then, the fruit arrives at the plant for packaging and distribution to grocery stores across the country. this is an example of:
Business
1 answer:
SSSSS [86.1K]3 years ago
6 0

The correct answer is forward integration. Forward integration is being defined as a business strategy by which it is associated with the vertical integration of where business activities are being expanded by means of including the control of the direct distribution or the supply of the products of the company.

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Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi
blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

    <u>Cr Cash 5,000</u>

December 31, dividends received

<u>Dr Cash 60</u>

    Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

    Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

  • Decrease by $5,000 due to the purchase of stocks.
  • Increase by $60 due to the dividends received.
  • net cash from investing activities = -$4,940

4 0
3 years ago
Macrosoft Company reports net income of $55,000. The accounting records reveal depreciation expense of $70,000 as well as increa
Mrrafil [7]

Answer:

$99,000

Explanation:

According to the scenario, computation of the given data are as follows,

         Net income  = $55,000

Add- Depreciation expense = $70,000

Less- prepaid rent = $50,000

Add- accounts payable = $11,000

Add- Income tax payable = $13,000

Total = $99,000

Hence, Net cash flow from operating activities = $99,000      

4 0
3 years ago
You bought a car for $17,250. You put down $3,000 cash and have to take a loan out to pay for the rest. The car dealership is of
LuckyWell [14K]

Answer:

Interest will be $855 x 10 years= $8,550

Explanation:

Interest

6÷100=0.06

0.06x14,250=$855

$855x10=$8,550.

How much to have paid back

At the end of 10years $8,550 would have been paid as interest

Total sum will be $14,250+$8,550=$22,800 to be paid back.

8 0
3 years ago
James Perkins wants to have a million dollars at retirement, which is 15 years away. He already has $200,000 in an IRA earning 8
Lelu [443]

Solution :

Given :

James needs $ 1,000,000 after 15 years.

His IRA deposit is $ 200,000 and is earning at the rate of 8% per annum.

Maturity value of $200,000 after 15 years = 2000000 \times( 1.08)^{15}

                                                                     = $ 634,434.

Balance fund needed after 15 years = 1,000,000 - 634,434

                                                           = $ 365,566

Therefore, the future value of the annuity is :

FV=A[\frac{(1+k)^n-1}{k}]

Here, FV = future annuity value = 365,566

            A = periodical investment

            k = interest rate = 8%

            n = period = 15 years

∴365566 = A\frac{[(1.08)^{15}-1]}{0.08}

       A = 13,464

Thus, James needs to save $ 13,464 each year end to reach his target.

4 0
3 years ago
Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits wh
MrRissso [65]

Answer: Increasing current profits when doing so lowers the value of the company's equity.

Explanation:

The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.

When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.

If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.

6 0
3 years ago
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