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3 years ago

The budgeting process does not involve which of the following activities?

Business

1 answer:

Vera_Pavlovna [14]3 years ago

8 0

Answer:

Increase in sales by increasing marketing efforts.

Explanation:

A budget can be defined as a financial plan which is used to make an estimate of the amount of amount that goes in and comes out. It can also be described as a financial plan that controls expensenses, resources, debts within a specific period of time.

Budgeting is carried out inorder to maintain and control an individual or an organization income so as to avoid wastage of resources. Budgeting keeps an individual or organization focused on achieving their different goals and objectives.

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A corporation reports the following year-end balance sheet data. The company's debt ratio equals: Cash $ 40,000 Current liabilit

Lady_Fox [76]

Answer:

0.37

Explanation:

The formula to compute the debt ratio is shown below:

= Total liabilities ÷ Total assets

where,

Total liabilities would be

= Current liabilities + Long term liabilities

= $75,000 + $35,000

= $110,000

And, the total assets would be

= $300,00

Now put these values to the above formula

So, the ratio would equal to

= $110,000 ÷ $300,000

= 0.37

4 0

3 years ago

Franklin Aerospace has a quick ratio of 2.00x, $38,250 in cash, $21,250 in accounts receivable, some inventory, total current as

postnew [5]

Answer:

Over the past year, the company sold and replaced its inventory 31.37x

Explanation:

In order to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate first the inventory with the following formula:

Current assets=cash+inventory+account receivables

inventory=Current assets-cash-account receivables

inventory=$85,000-$38,250-$21,250

inventory=$25,500

So, to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate the Inventory turnover ratio as follows:

Inventory turnover ratio=sales/inventory

Inventory turnover ratio=$800,000/$25,500

Inventory turnover ratio=31.37x

Therefore, over the past year, the company sold and replaced its inventory 31.37x

6 0

3 years ago

According to surveys in the U.S. and the United Kingdom, what are the most frequently used financial performance measures by mul

I am Lyosha [343]

Answer:

Correct answer is (C)

Explanation:

Budgeted profit vs. actual profit, return on investment, profit

6 0

3 years ago

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The diff

Afina-wow [57]

Answer:

Case 1 = $420 million

Case 2 = $280 million

Case 3 = $350 million

Explanation:

As per the data given in the question,

Annual value by one distributor = $420 million per year

Annual value by two distributor = $560 million per year

Case 1)

The marginal value of first distributor is more than second

So when negotiating the value, it is = $560 million - $420 million = $140 million

and this value would be distribute between both. so each will get = $140 million / 2 = $70 million

and you would expect to capture $420 million of this deal

Case 2)

As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million

Case 3)

In this case marginal amount of contact = $560 million - $140 million = $420 million

and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered

and you would expect to grab the remaining amount = $560 million - $210 million

= $350 million

7 0

3 years ago

On January 1, 2009 the accounts receivable and the allowance for doubtful accounts carried balances of $20,000 (debit) and $500

denis23 [38]

Answer:

The net realizable value of receivables appearing on the 2009 balance sheet is $14,250

Explanation:

First, we need to calculate the balance of account receivables

Ending balance = Beginning Balance + Credit sales - Cash collected - Bad debt written off

Where

Beginning Balance = $20,000

Credit sales = $100,000 x ( 100% - 30% ) = $70,000

Cash collected = $74,550

Bad Debt written off = $550

Placing values in the formula

Ending balance = $20,000 + $70,000 - $74,550 - $550 = $14,900

Now, we need to calculate the balance of allowance for doubtful accounts as follow

Ending Balance = Beginning balance + Bad debt Expense - Bad debt written off

Where

Beginning balance = 500

Bad debt expense = $70,000 x 1% = $700

Bad debt written off = $550

placing values in the formula

Ending Balance = $500 + $700 - $550 = $650

Now calculate the balance of realizable value of account receivables as follow

Net realizable value of receivables = Ending balance of receivables - Ending balance of allowance for doubtful accounts = $14,900 - $650 = $14,250

6 0

3 years ago