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3 years ago

A reserve is an account

Business

1 answer:

Ad libitum [116K]3 years ago

3 0

Answer:

The correct option is;

d. Set aside from profit for specific purpose

Explanation:

A reserve which is a term in accounting to define a portion of the profits of the business set aside to build the financial posture of the company by expanding the business or to grow to an higher operating level

A reserve account which can be referred to as a reserve fund, is an account meant to keep a portion of the business profits to serve a particular purpose in the future.

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Gentle Ben's Bar and Restaurant uses 6,400 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottl

Sauron [17]

Answer: 523.72 units

Explanation:

Economic Order Quantity = √( 2 * Annual Demand * Order Cost/ holding cost)

holding cost = 35% * Purchase price

= 35% * 4

= $1.40

EOQ = √( 2 * 6,400 * 30/ 1.40)

= 523.72 units

6 0

3 years ago

a conflict will exist between the npv and irr methods, when used to evaluate two equally risky but mutually exclusive projects,

Fiesta28 [93]

True-No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.

<h3>What is NPV and IRR methods?</h3>

While the IRR approach calculates the projected percentage return, the NPV method produces the predicted dollar worth of a project.

Purpose. The breakeven cash flow level of a project is the emphasis of the IRR approach while project surpluses are the subject of the NPV method.

assistance with decisions. Since it provides a dollar return, the NPV approach delivers an outcome that serves as the basis for an investment decision. The IRR approach is not helpful in making this choice because its percentage return does not indicate to the investor how much money will be produced.

Reinvestment rate. When NPV is utilized, the firm's cost of capital is the assumed rate of return for reinvesting intermediate cash flows; when it is the internal rate of return.

To learn more about NPV and IRR methods from the given link:

brainly.com/question/21241533

#SPJ4

5 0

2 years ago

Crane Company

Afina-wow [57]

Answer:

<u>statement of cash flows using the indirect method</u>

Cash flow from Operating Activities

Cash Receipts from Customers $145,200

Cash Paid to Supplies and Employees ($108,900)

Net Cash from Operating Activities $36,300

Cash flow from Investing Activities

Proceeds from Sale of Equipment $5,100

Net Cash from Investing Activities $5,100

Cash flow from Financing Activities

Dividends Paid ($12,000)

Net Cash from Financing Activities ($12,000)

Movement during the period $29,400

Cash and Cash Equivalents at Beginning of the Period 0

Cash and Cash Equivalents at the End of the Period $29,400

Explanation:

<u>Cash Receipts from Customers Calculation :</u>

Sales revenue $ 145,200

Assuming Cash Sales

<u>Cash Paid to Supplies and Employees Calculation :</u>

Cost of goods sold $105,000

Add Selling Expenses $10,800

Add Administrative expenses $3,600

Less Depreciation ($10,500)

Cash Paid to Supplies and Employees $108,900

6 0

3 years ago

Steve jobs was a unique individual with some interesting quirks that drove him as a businessman. based on what you have read in

GenaCL600 [577]

Steve Jobs is a well known businessman all over the globe for being the one who started the multibillionaire business Apple, Inc. And based on his status before, the primary factor that most likely caused stress for Jobs was DEMANDS THAT WERE CREATED BY INDIVIDUAL DIFFERENCES.

4 0

3 years ago

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes a

Ann [662]

Answer:

A. The answer is:

Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000

B. The answer is:

Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

Explanation:

Denote X is the total revenue Qwik Service has to earn.

We have:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet break-even, the total contribution margin should be equal to fixed cost or: 0.3X = 12,000,000 <=> X = $40,000,000

=> Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000.

The note Y is the total revenue per one outlet.

At one outlet, revenue and margin will be:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet net income target of $45,000, the total contribution margin should be equal to fixed cost of $60,000 and delivering $45,000 net income or: 0.3X = 45,000 + 60,000 <=> X = $350,000.

=> Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

6 0

3 years ago