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3 years ago

Which of the following is not a typical adjustment made to the income statement for projection purposes?

Business

1 answer:

ankoles [38]3 years ago

7 0

Answer:

The correct answer is b. Adjusting revenues to only include organic revenue growth.

Explanation:

One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.

The applications that can be had among others are the following:

Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.

Another application will be to know the external financing needs for the period you want to know.

The most common and practical method of projecting financial statements is based on sales.

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Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respect

nalin [4]

Answer:

The computation is shown below:

Explanation:

The computation is shown below:

As we know that

a) Marginal Propensity to Consume (MPC) = Change in consumption ÷ change in disposable income

MPC = $15 billlion ÷ $20 billion

MPC = 0.75

And,

Marginal Propensity to Save (MPS) = change in saving ÷change in disposable income

MPS = $5 billion ÷ $20 billion

MPS = 0.25

Now

b) Before the increase in disposable income

The average propensity to consume (APC) is

= Consumption ÷ disposable income

= $150 billion ÷$200 billion

= 0.75

And,

After the increase in the disposable income

New disposable income = $200 billion + $20 billion

= $220 billion

And,

New consumption = $150 billion + $15 billion

= $165 billion

So,

APC = New consumption ÷ new disposable income

= $165 billion ÷ $220 billion

= 0.75

6 0

3 years ago

Explain the impact of taxation on the valuation of a country's currency

klemol [59]

Answer:

The value of a currency depends on factors that affect the economy such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices

6 0

2 years ago

A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten days; otherwise, the bill is

UNO [17]

Answer: not, I wouldn't reccomend to borrow from a bank at 18% annual

Explanation: You will pay more, as montlhy interest would be 1.5% and for the 60 days you will pay 3% interest for the loan (18/12*2).

Example:

Price $ 100

with 2% of discount by paying within 10 days would be $98

And if you ask for a loan of $98 (that is the amount you need to pay with the discount) in 60 days you must pay to the bank $100.94 (98*1.03)

7 0

3 years ago

Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix

Nezavi [6.7K]

Answer:

Number of units= 4,000 units

Explanation:

Giving the following information:

Sales $200,000

variable costs $120,000

fixed costs $60,000

net income $20,000.

We have to maintain a net income of $20,000.

First, we will calculate the selling price per unit and the unitary variable cost:

Selling price= 200,000/5,000= $40 per unit

Variable cost per unit= 120,000/5,000= $24 per unit

New selling price:

Selling price= $44

Contribution margin per unit= 44 - 24= $20

Now, we have to find the total contribution margin required:

Contribution margin required= net operating income + fixed costs

Contribution margin required= 20,000 + 60,000= 80,000

Number of units= total contribution margin/ unitary contribution margin

Number of units= 80,000/20= 4,000 units

4 0

3 years ago

__________ unemployment results when the demand for labor varies during the year.

kodGreya [7K]

Answer: Seasonal Unemployment.

Explanation:

Seasonal unemployment refers to the unemployment which occurs when people are suffering from unemployment during the year, this is because of the lower demand for labor than it was usually.

Their are some examples where seasonal unemployment could be a big problem such as tourist areas where work is available for a few months in a year. So, tourist compensate for the remaining months in which work is not available from saving extra in a peak tourist season.

8 0

3 years ago