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Sloan [31]
2 years ago
8

If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inf

lows over the amount to be invested, the proposal should be rejected.True / False.
Business
1 answer:
natulia [17]2 years ago
5 0

Answer:

True

Explanation:

Net present value is the present value of after tax cash flows less the amount invested.

If there is a deficiency of the present value of future cash inflows over the amount to be invested, it means the NPV is negative and the project proposal should be rejected.

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When customers buy computers at Maalik's store, he offers a service package at a discounted rate. Additionally, he has an ongoin
salantis [7]

Answer:

Impacting his clientele base with increased profitability and to extend the duration of customer relationships.

Explanation:

Maalik is focused on improving customer relationship management, impacting the profitability of existing customers and extending the duration of customer relationships by offering a service package at a discounted rate and a promotion that allows customers to trade in their old computers for new ones at much lower prices than his competitors can offer.

6 0
2 years ago
recent monthly contribution format income statement: Sales$1,652,000 Variable expenses 628,880 Contribution margin 1,023,120 Fix
kati45 [8]

Answer:

Gatty Corporation

1. Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $580,000  $1,652,000

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $348,000    $1,023,120

Traceable fixed expenses   $268,000 $320,000   $191,000         779,000

Common fixed expenses                                                                  346,000

Net operating income (loss) $(73,880)  $161,000   $157,000       $(101,880)

2. Assuming these estimates are accurate and implemented, the company's net operating loss of $101,880 will decrease by $69,600 to $32,280.

Explanation:

a) Data and Calculations:

GATTY Corporation

Recent monthly contribution format income statement:

Sales                                    $1,652,000

Variable expenses                  628,880

Contribution margin              1,023,120

Fixed expenses                     1,125,000

Net operating income (loss) $(101,880)

Segmented Income Statement for the most recent month

Division                                                             East           Central     West

Sales                                                            $422,000 $650,000 $580,000

Variable expenses as a percentage of sales     54%           26%          40%

Traceable fixed expenses                         $268,000 $320,000   $191,000

1. Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $580,000  $1,652,000

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $348,000    $1,023,120

Traceable fixed expenses   $268,000 $320,000   $191,000         779,000

Common fixed expenses                                                                  346,000

Net operating income (loss) $(73,880)  $161,000   $157,000       $(101,880)

Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $678,600   $1,750,600

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $446,600     $1,121,720

Traceable fixed expenses   $268,000 $320,000  $220,000       808,000

Common fixed expenses                                                                 346,000

Net operating income (loss) $(73,880)   $161,000 $226,600      $(32,280)

$(101,880)

$(32,280)

$69,600

4 0
3 years ago
A company sold a machine that originally cost $250,000 for $120,000 when accumulated depreciation on the machine was $100,000. t
Ghella [55]
$250000-$100000=$150000
$150000-$120000=$30000

So it's a gain, a gain of $30000
Hope this helps.
7 0
3 years ago
"California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insura
leva [86]
<h3>California Inc Estimated ending inventory is $319,000 </h3>

Explanation:

Goods available for sale = Beginning inventory + Net purchases

  • California Inc Beginning inventory $310,000
  • California Inc Net purchases = $905,000
  • California Inc Goods available for sale = $1,215,000

Gross profit = Net sales *  profit %

  • California Inc Net sales = $1,280,000
  • California Inc gross profit = 30%  
  • California Inc gross profit = $384,000

Estimated cost of goods sold = Net sales - Gross profit

  • California Inc Estimated cost of goods sold = $1,280,000 - $384,000
  • California Inc Estimated cost of goods sold = $896,000

Estimated ending inventory = Goods available for sale - Cost of goods sold

  • California Inc Estimated ending inventory = $1,215,000 - $896,000
  • California Inc Estimated ending inventory = $319,000

California Inc Estimated ending inventory is $319,000

3 0
3 years ago
When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter
MissTica
When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter <span>shifted to the right. The correct option among all the options that are given in the question is the second option. I hope that this is the answer that has come to your help.</span>
4 0
3 years ago
Read 2 more answers
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