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4 years ago

A higher earnings per share (eps) does not necessarily translate into a higher stock price

Business

1 answer:

nikdorinn [45]4 years ago

4 0

This doesn't seem to be a question, but rather, a statement.

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Uncollectible accounts should not be estimated because it is impossible to know which accounts will not be collected.

lara [203]

It's false that uncollectible accounts should not be estimated because it is impossible to know which accounts will not be collected.

7 0

3 years ago

The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it

kramer

Answer:

Net Increase in profit is $27,000

Explanation:

* The data was missing in this question, a similar question is attached with the answer, and answer is made accordingly. Please find it.

Sales ( $350,000 x 120% ) = $420,000

- Variable cost ( 40% ) = $168,000

- Traceable fixed cost( 175000+15000) = $190,000

Net Profit = $62,000

Net Increase in Net Income = $62,000 - ( 350,000 - (350,000 x 40%) - 175,000 ) = 27,000

6 0

4 years ago

NISA [10]

Answer:

Point C

Diagram is available online but cannot be imported due to its format

Explanation:

A reduction in the cost of inputs means that suppliers will avail more fish in the market. An increase in supply caused by other factors other than price shifts the supply to the right. A shift of the supply curve outwards or the right makes the equilibrium point to move to capture an increase in supply.

In the diagram, the new equilibrium point will be at point C. The supply will increase due to a reduction in input costs.

8 0

3 years ago

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this pro

xenn [34]

Answer:

Financial disadvantage from dropping = $(182,000)

Explanation:

A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.

In a shut down decision , the following relevant cash flows should be considered:

1. Lost contribution from the product to be shut down

2. Savings in fixed directly attributable to the product under consideration.

So, we will apply these principles as follows:

Lost contribution from the product to be shut down:

(942,000-415,000) (527,000)

Savings from fixed direct fixed cost:

(217,000+128,000) 345,000

Net loss contribution (182,000)

Financial disadvantage from dropping = $(182,000)

5 0

3 years ago

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

ad-work [718]

Answer: $7924. 5

Explanation:

Given the following :

Cost of new equipment and timbers - $275,000

Working capital required - $100,000

Annual net cash receipts - $120,000

Cost to construct new roads in year three - $40,000

Salvage value of equipment in four years - $65,000

Kindly check attached picture for Explanation

4 0

3 years ago