Answer:
Animeat should access a flexible line of credit.
Explanation:
While it is common knowledge that businesses including those that are profitable would at one time or another have cash flow problems, yet it is pertinent for business owners and managers to always plan ahead against lack or shortage of cash flow as such could lead to total collapse of the business or customers/suppliers loss.
With regard to the above scenario, I would suggest Animeat access a flexible line of credit like invoice finance,overdraft facilities or short term business loan etc, inorder to meet up with it's food supply when the time comes. This would give the business quick access to funds/cash hence cushion the effect of cash flow problem during the predicted time.
The most important source of finance is to find the one that suit the business need and in which interest payment will be seamless so that available cash will not be depleted.
Answer: (D) Globalization of production
Explanation:
The globalization of the production is the process of sourcing the various types of products and the services which involve the capital flows and the trading worldwide.
The production of the various types of products and the services at very low cost is one of the main advantage of the globalization.
According to the given question, the globalization of production is one of the practicing that helps in demonstrating the given west electronic corporation situation.
Therefore, Option (D) is correct answer.
Answer:
See explanation section
Explanation:
1. Debit Cash $17,000
Credit Service revenue (music) $17,000
<em>Note: The academy receives cash by providing music services to the students.</em>
2. Debit Prepaid Insurance $4,200
Credit Cash $4,200
<em>Note: The academy paid cash in advance to purchase insurance policy.</em>
3. Debit Musical Equipment $20,000
Credit Cash $20,000
<em>Note: The academy paid cash for acquiring musical equipment.</em>
4. Debit Cash $30,000
Credit Notes payable $30,000
<em>Note: The academy borrowed cash by signing a notes from the bank.</em>
Answer:
The average operating assets for Division Y = $125,000
Explanation:
Divisions Y
Sales ?
Net Operating Income 25,000
Average operating assets ?
Return on Investment 20%
Margin 0.05
Turnover ?
Target ROI 12%
Since we need average operating assets for division Y, we include those.
We know,
Return on Investment = Net Operating Income/ Average operating assets.
Return on investment is the ratio that is used to measure the company's profitability by using the efficient use of operating assets.
Therefore,
20% = $25,000/Average operating assets
Average operating assets x 20% = $25,000
Average operating assets = $25,000/20%
Average operating assets = $25,000/0.20
Average operating assets = $125,000
Solution:
a-1) Calculation of the number of shares used for calculating Basic Earning per share
No. of shares period
752000 3/12 188000
1314000 9/12 985500
Weighted average No of shares outstanding 1173500
a-2) Calculation of the number of shares used for calculating Diluted Earning per share
No. of shares period
752000 3/12 188000 1314000 3/12 328500 with Bonds 1340400 6/12 670200
Weighted average No of shares outstanding 1186700
Each bonds to per converted into 44 common stock
i.e. 600 Bonds *44 common=26400 Potential equity shares
b-1) Calculation of earning figures to be used for calculating Basic Earning per share
After Tax net Income will be earnings = $1614000
b-2) Calculation of earning figures to be used for calculating Diluted Earning per share
After tax net Income 1614000
Interest for the 2017 =600000*7*6/12 21000
Tax effect on Interest @40% 8400 12600 1626600
Earnings = 1626600
