Answer:
The correct answer is the option True, it would be reasonable.
Explanation:
To begin with, accounting is one of the most importants subjects to have in mind regarding the fact of openning and managing a business, no matter how small or large that firm will be. Moreover, accounting will facilitate the fact of keeping up with everything that goes in and goes out regarding money in the business and to also help the manager to see how well the incomes and outcomes are doing in the balance sheet. Therefore that accounting can help the manager to improve the performance of the business if the information is understood and used properly. Besides, accounting information is obligatorily important when regarding subjects of taxes and legal matters as well.
Secondly, although is important to keep up with the accounting of the business, a small company could not pay too much attention to it and instead focusing in other matters. However, it is very important to understand that to be a master in managing a business and to improve the performance of it, it is very important to give more attention to accounting information with the purpose of understanding the business better.
Answer:
From the strategies provided, the correct debt strategies that will help a corporate borrower eliminate credit risk are strategy 1 and strategy 2, which are; Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%. and Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%.
Answer:
D) 270,000
Explanation:
The computation of the outstanding number of shares is shown below:
= (Issued shares - treasury shares) × stock split ratio
= (100,000 shares - 10,000 shares) × 3
= 90,000 shares × 3
= 270,000 shares
Simply we deduct the treasury stock from the issued shares and then multiply it by the stock split ratio so that the correct amount of outstanding shares can come
Net liquidation i believe is the proper term
Answer: See explanation
Explanation:
a. The optimal order quantity can be calculated as:
= √2DS/H
where
D = 3 × 12 × 3487 × 0. 75
= 94149
Total cost incurred during purchase
= $1.55 + $0.70
= $2.25
Setup cost (S) = $186
Holding cost
= 32% × $2.25
= 0.32 × $2.25
= $0.72
Optimal order quantity
= √(2 × 94149 × 186)/0.72
= 6974.50
b. This will be calculated as:
Annual demand / EOQ
= 94149/6974.50
= 13.50
The company should order cotton 13.5 times per year.
c. Since the first order is needed on 1-July and lead time is 2 weeks, SYM should place the order before 17th June.
d. This will be:
= Annual demand / EOQ
= 94149/6974.50
= 13.5 orders
e. The resulting annual holding cost will be:
= 0.72 × (6974.50/2)
= 0.72 × 3487.25
= $2510.82
f. The resulting annual ordering will be:
= 94149/6974.50 × $186
= 13.5 × $186
= $2511
