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zysi [14]
3 years ago
13

Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The in

come of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbour's farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares
Business
1 answer:
topjm [15]3 years ago
4 0

Complete Question:

Akram owns a small farm.He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbors farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares.

Requirement. Identity two types of short-term finance Akram could use when the farm income is low

Answer with its Explanation:

The two types of short term finances are as under:

  1. Merchant Cash Advance: It is also known as supplier payables but in fact it is actually an cash advance by supplier to promote its sales by allowing credit for a short term. It doesn't what level of profits the company is earning, the supplier always allow small period for payment of its goods.
  2. Invoice Financing: It helps the company borrow money from money lenders (mostly banks) against the debtors accounts. This is usually a short term loan with option to expand both time and money if the company has proven to growth and better credit control. The invoice finacing doesn't effect the borrowings in short term if the business profits are low because for qualifying for such loan the company must have better cash postion. Though higher profits might help in securing the short term loan by using invoice financing but cash generation is the key requirement here.
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The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4
Bezzdna [24]

Answer:

a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours

Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours

b.  Journal Entries

S/N    Account Titles                         Debit           Credit

1       Inventory - Raw material          $110,000

             Account Payable                                     $110,000

2    Work in process                            $32,500

     Manufacturing overhead              $7,500

             Inventory - Raw materials                         $40,000

3    Work in process                            $52,500

     Manufacturing overhead              $11,000

              Materials control                                       $63,500

4      Manufacturing overhead            $17,250

               Leasehold payable                                    $16,250

               Utilities payable                                          $1,000

5.     WIP Control (14,375*800)            $11,500

                Manufacturing overhead allocation         $11,500

c. Particulars                               Dep 100     Dep 200   Total

Direct materials                           $32,500     $13,500   $46,000

Direct labour                                $52,500     $13,500   $106,000

Manufacturing overhead             $35,750     $18,750   $54,500    

(11,000+7,500+16,250+1,000

+9,000+4,750+3,750+1,250)

Total Cost of Job A                     $120,750   $85,750    $206,500

7 0
3 years ago
The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The followi
Strike441 [17]

Answer:

$25,400

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

The movement in the retained earnings balance may be expressed as

Opening balance + net income - cash dividend paid = closing retained earnings balance

Cash dividend declared - Cash dividend paid =  Cash dividend payable

$49,000 - Cash dividend paid = $23,600

Cash dividend paid = $49,000 - $23,600

= $25,400

7 0
3 years ago
A scientific paper that has passed through the peer review process is more respected than one that has not. Why might a scientis
frez [133]

Answer:

B) The described experiment meets or exceeds the standards of good science.

Explanation:

When we say a scientific report that has been peer-reviewed, it means that it has been read and evaluated by other scientists. The peer-review process is meant to ensure the integrity and quality of the scientific publications. The peer reviewer should review the experimental design, the data and the analysis.

4 0
3 years ago
Read 2 more answers
A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What
skad [1K]

Answer:

$0

Explanation:

The amount of revenue realized from the sale=

(number of shares purchase × cost) - (number of shares sold ×cost)

(1000×10) - (500×20)

= $(10000 - 10000)

= $0

8 0
3 years ago
Now that Tim Cook has assumed the CEO position at Apple, he will have to make certain decisions to guide the firm's strategy. Wh
Alexxx [7]

Answer:

Organizational culture

Explanation:

Organizational culture can be defined as a system of shared assumptions , value , and beliefs that governs the behavior of employees in an organization environment.

One major purpose of organizational culture is that it governs it aligns the purpose of an organization to that of its employees , therefore making it easier for the central mission and vision to be achieved.

This is an internal factor that may impact Cook;s managerial discretion.

7 0
3 years ago
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