Answer:
Starbucks
Starbucks' Capital Structure
Restructured from a primarily equity-financed company to a primarily debt-financed company:
A. Yes.
Explanation:
Starbucks' assets are more than 60% financed by long-term debts, with less than 40% financed by equity. The advantage of having a higher debt leverage is to optimize the returns to the stockholders. This is because interest expenses arising from the debts are tax-deductible. The ROE (return on equity) is always higher for a debt-leveraged firm than an equity-financed firm because more of the net income will be available for distribution to stockholders, given the tax benefits of having more debts.
We are given the following data for publishing an electronic textbook about spreadsheet applications for business.
Fixed cost = $160,000
Variable cost = $6 per book
Selling price = $46 per book
First, we have to establish an equation to know the profit or loss of the company.
Total cost = Fixed cost + Variable Cost (number of books)
Total sales = Selling price (number of books)
The profit is calculated by subtracting the total cost from the total sales.
Profit = Total sales - total cost
The following equations are useful:
let x = number of books produced
y = number of books sold
Total cost = $160,000 + $6x
Total sales = $46y
The value of x can be changed according to the actual number of books produced. y can be changed according to the actual number of books sold
Profit = $46y - ($160,000 + $6x)
If x = y = 3500
Profit = $22,000 for 3500 books
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Master budget is an expensive strategy and some of the major elements that form the master budgets are the over head and the production the cost and the expenses . The budgeting process is master budgeting and it is always effective
Explanation:
Master budgeting is something that includes the future calculated value and the future income and the expenses of the company and the level at which the expenses are maintained are all contained in the master budget
There are two types of budgets the operational budgets and the financial budgets and the main elements of the master budgets are the overall incomes and the expenses the future investments the predicted total production of the company are all taken into account
Explanation:
The Journal Entry is given below:-
a. Cash Dr, 8400
Accounts receivable 8400
(Being the Cash received)
b. Supplies Dr, 2500
Office equipment 2500
(Being the reserve entry is recorded)
Supplies Dr, 2500
Accounts payable 2500
(Being the supply is purchased)