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Hunter-Best [27]
3 years ago
13

Alpha Manufacturing has interest expense of $12 million, total assets of $184 million, sales of $176 million, long-term debt of

$16.4 million, and net income of $15 million. How will interest expense be recorded in the common-size income statement?
Business
1 answer:
erma4kov [3.2K]3 years ago
7 0

Answer:

0.068

Explanation:

Common size income statement in which we divide all the items with it's revenue. So, interest is $12 M, and sales is $176 M.

Dividing 12/176= 0.068

That means the interest is 6.8% of revenue. Common size is used for comparison purpose. If let's say in next year interest become 15% of revenue then company would know that it's using more debt. It's also used for comparing with competitors.  

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What best-cost provider strategy would you be most unlikely to recommend for a small-sized company entering a highly segmented m
Ainat [17]

Answer:

I would be most UNLIKELY to recommend a broad low-cost strategy to a small-sized company entering a highly segmented market.

Explanation:

I would NOT recommend a broad low-cost strategy because the <u>company size suggests it lacks the necessary resources to satisfy the various customer needs in a broad and highly segmented market.</u>

Instead, I would be most likely to recommend a Focused low-cost strategy with which the company can focus its limited resources on a specific narrow segment or niche in the market, and meet the needs of customers within that segment.

8 0
3 years ago
Consider the relative liquidity of the following assets: Assets
Marrrta [24]

Answer:

4. Your house - MONEY IS THE MOST LIQUID ASSET THAT CAN EXIST

2. The funds in a savings account  - MOST SAVINGS ACCOUNTS ALLOW THEIR CLIENTS A CERTAIN NUMBER OF WITHDRAWALS OR ELECTRONIC TRANSFERS PER MONTH, SO MONEY AT A SAVINGS ACCOUNT IS ALSO VERY LIQUID.

1. A bond issued by a publicly traded company - THE COMPLETE PROCESS OF SELLING A BOND MAY TAKE FROM ONE FULL DAY TO A FEW DAYS, SINCE FIRST YOUR TRADER MUST SELL THE BOND AND THEN THEY MUST TRANSFER THE MONEY TO YOUR ACCOUNT. STILL BONDS ARE LIQUID ASSETS.

4. Your house - SELLING A HOUSE IS A LONG PROCESS THAT CAN TAKE A FEW DAYS (AT BEST) TO SEVERAL MONTHS, SO A HOUSE IS NOT A VERY LIQUID ASSET.  

3 0
3 years ago
To make your business messages more effective, revise for vigor and directness. You can strengthen your writing by unburying ver
algol [13]

Answer:

The correct answer is letter "D": Give consideration to the economic climate.

Explanation:

Buried verbs express actions using verb redundantly. Most of the time they are composed of two verbs unnecessarily jointed when only one of them could give meaning to the segment. The two words jointed become a noun. Buried verbs make sentences wordy and do not help in improving the clarity of the message. Thus, the sentence:

  • <u><em>Give consideration</em></u><em> to the economic climate. </em>

Should only be:

  • <em>Consider the economic climate.</em>
7 0
3 years ago
Costs which are always relevant in decision making are those costs which are: A. Variable B. Avoidable C. Sunk D. Fixed
Eddi Din [679]

Answer:

B. Avoidable

Explanation:

A relevant cost is a cost that only relates to a specific management decision.  This means that a relevant cost is a cost that differs between alternatives being considered . Fixed , Variable and Sunk cost will always exists so they are not relevant when comparing two alternatives.

Avoidable costs,  will exists if we choose a particular alternative. So it's relevant for your decision.

4 0
4 years ago
Omar is Precise Service Company's chief executive officer. On Precise's behalf, Omar solicits business, hires and fires workers,
DaniilM [7]

Answer:

The correct answer is the option A: a principal.

Explanation:

To begin with, the term of <em>''principal''</em> in the field of business refers to the individual who may have many roles inside an organization but he is basically one of the most importants person in the company. Moreover, the figure of the principal is sometimes related to the owner of the business or to the chief executive officer as well. Therefore that Omar is most likely a principal in Precise Service Company.

7 0
4 years ago
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