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3 years ago

Virginia Company uses the indirect method to prepare the statement of cash flows. Refer to the following

Business

1 answer:

nasty-shy [4]3 years ago

4 0

Answer:

D) as a deduction from Net Income

Explanation:

When the company decrease the value of the accounts payable it means that the company pays its debts in less time than previous year.

In effect the company sees its net income decrease because needs the money to compensate the lower value on the Accounts Payable as a consequence of beeing paid in less time.

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Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in bl

GenaCL600 [577]

Answer:

1. Regular models 24,000

Deluxe models 3,556

2.17.4354%

Explanation:

1. Computation for the number of regular models and deluxe models that must be sold to break even

REGULAR MODEL:

First step is to calculate the Contribution per unit using this formula

Contribution per unit=Contribution/No.ofunits

Let plug in the formula

Contribution per unit=$4,500,000/90

Contribution per unit=50

Now let calculate the Break even units using this formula

Break even units=Direct fixed costs/Contribution per unit

Let plug in the formula

Break even units=$1,200,000/50

Break even units=24,000

DELUXE MODEL:

First step is to calculate the Contribution per unit using this formula

Contribution per unit=Contribution/No.ofunits

Let plug in the formula

Contribution per unit=$4,860,000/18,000

Contribution per unit=270

Now let calculate the Break even units using this formula

Break even units=Direct fixed costs/Contribution per unit

Let plug in the formula

Break even units=960,000/270

Break even units=3,556

Therefore the number of regular models and deluxe models that must be sold to break even are:

Regular models 24,000

Deluxe models 3,556

2. Computation for the sales revenue that must be generated for the company to break even

First step is to calculate the Break-even sales -

Break-even sales = 16,290,000 + 2,160,000 + 1,280,000

Break-even sales = 19,730,000

Second step is to calculate the Contribution Using this formula

Contribution = Break-even sales - Variable costs

Let plug in the formula

Contribution = 19,730,000 - 16,290,000

Contribution = $3,440,000

Now let calculate the Contribution margin ratio using this formula

Contribution margin ratio=Contribution/Break even sales *100

Contribution margin ratio=$3,440,000/$19,730,000*100

Contribution margin ratio=17.4354%

Therefore the Contribution margin ratio is 17.4354%

7 0

3 years ago

While discussing approaches to boost organization productivity, rene, the president of an auto manufacturer, was interested in a

Lesechka [4]

It seems that you have missed the necessary options for us to answer this question so I had to look for it. Anyway, the answer that would best complete the given statement above is the word CLASSICAL. <span>While discussing approaches to boost organization productivity, rene, the president of an auto manufacturer, was interested in a rational approach that through the application of scientific methods, time and motion studies, and job specialization found it is possible to increase productivity. This is the essence of the CLASSICAL viewpoint. Hope this helps.</span>

5 0

4 years ago

Which theory would most likely explain why a commercial bank, which usually focuses on short-term securities, would switch to lo

den301095 [7]

Answer:

preferred habitat

Explanation:

According to the preferred habitat theory, if the expected returns from investment of a particular investment maturity is large enough, investors would shift from their preferred maturities.

In this question, there is a shift from the preferred maturity (short-term securities) to a long-term securities when interest rate changes

The pure expectations theory assumes that bonds of any maturity are perfect substitutes for each other. For example, if an investor buys a 10 year bond and holds it for 1 year, the return is the same as buying a 1 year bond. The theory also assumes that risk premium does not exist and a security only earns its risk free rate

Liquidity premium theory states that risk premium increases with the maturity of a bond. The theory predicts that the yield curve is upward sloping due to liquidity premium

According to the segmented market theory, each bond maturity segment can be thought of as a segment market in which yield are a function of the demand and supply for funds in that maturity.

5 0

3 years ago

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6300, $11,300, and $

sladkih [1.3K]

Answer:

$27,642.86

Explanation:

To determine the price Marko will pay today to buy ABC Co, one has to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow in year one = $6300

Cash flow in year two = $11,300

Cash flow in year three = $17,500

I = 11%

Present value = $27,642.86

To find the present value using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0

3 years ago

Is college necessary to succeeding in life?

Aneli [31]

Answer:

Yeah it's good in some ways coz it helps in life time but sometimes it's useless coz even if you finish your college sonetimes it's hard to find a job

8 0

2 years ago