All categories

4 years ago

Why should all small business owners develop business plans even if they are not required to obtain financing?

1 answer:

4 0

A business plan would help small business owners to know how to operate the business, achieve goals and what activities need to be conducted in case they missed anything out. It helps a business to plan out and conduct business operations.

You might be interested in

Last year easton corporation reported sales of $870,000, a contribution margin ratio of 40% and a net loss of $39,000. based on

OlgaM077 [116]

First of all, the fixed expenses will be calculated -

Profit = (Sales * Contribution Margin) - Fixed expenses

Loss = $ 39,000, Sales = $ 870,000 and Contribution margin = 40 %

Using the equity of Profit -

- $ 39,000 = ( $ 870,000 * 40 %) - Fixed expenses

Fixed Expenses = $ 348,000 + $ 39,000 = $ 387,000

Now, Break-even point will be calculated as -

Break-even point = Fixed cost ÷ Contribution Margin

Break-even point = $ 387,000 ÷ 40 % = $ 967,500

4 0

4 years ago

Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest o

Aleks04 [339]

Answer:

Lois will save $152.51 when she wil transfer her balance.

Explanation:

Amount to be paid in 1 year for original credit card is given as

$P_1^{'}=P*(1+r_1)^t$

Here $P^{'}_1$ is the amount to be paid after P is the balance which is 970, $r_1$ is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

$P_1^{'}=P*(1+r_1)^t\\P_1^{'}=970*(1+\dfrac{24.2}{12}\%)^{12}\\P_1^{'}=970*(1.0207)^{12}\\P_1^{'}=970*1.2707\\P_1^{'}=\$1232.61$

Similarly for the second one the values are calculated as

$P_2^{'}=P*(1+r_2)^t\\P_2^{'}=970*(1+\dfrac{10.8}{12}\%)^{12}\\P_2^{'}=970*(1.108)^{12}\\P_2^{'}=970*1.1135\\P_2^{'}=\$1080.10$

The differnce of the two values is calculated as

$P_1'-P_2'=1232.61-1080.10\\Difference=\$ 152.51$

The difference is $152.51 which she could save.

7 0

3 years ago

Read 2 more answers

Select the incorrect statement regarding relevant costs and revenues. Group of answer choices Sunk costs are never relevant for

raketka [301]

Answer:

The incorrect statement regarding relevant costs and revenues:

To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.

Explanation:

For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time. It must also differ between the options available for decision making. A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided. This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.

6 0

3 years ago

For each of the following independent events, identify the account that would be debited and the account that would be credited.

My name is Ann [436]

Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

6 0

3 years ago

Wiley Hill opened Hill's Repairs on March 1 of the current year. During March, the following transactions occurred: Wiley invest

pochemuha

Answer:

Detailed solution is given below:

5 0

4 years ago