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4 years ago

Toyota deciding to issue $175 million in long-term debt is an example of which of the following corporate financial decisions?

Business

1 answer:

notsponge [240]4 years ago

3 0

Answer:

Capital Structure.

Explanation:

Toyota deciding to issue $175 million in long-term debt is an example of Capital Structure of corporate financial decisions.

Capital Structure is the distribution of the debt and equity that makes the finance of the company.

Capital Structure can be obtained by two ways and both ways of obtaining funds are further divided-

1. Shareholder's Funds

a. Equity Capital

b. Preference Capital

c. Retained Earning

2. Borrowed Funds

a. Debenture

b. Term loans

c. Public Deposit

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Waterway Enterprises reported cost of goods sold for 2020 of $1,385,600 and retained earnings of $5,415,900 at December 31, 2020

levacccp [35]

Answer:

b. Corrected 2020 cost of goods sold = $ 1,320,320.

b. Corrected retained earnings = $5,377,860.

Explanation:

a. Determine the corrected amounts for 2020 cost of goods sold

An overstatement of the beginning inventory has to be deducted from the reported cost of good sold since the amount of the overstatement was added to the cost of goods sold initially.

On the other hand, an overstatement of the ending inventory has to be added to the reported cost of good sold since the amount of the overstatement was deducted to the cost of goods sold initially.

Therefor, we have:

Corrected 2020 cost of goods sold = $1,385,600 - $103,320 + $38,040 = $ 1,320,320.

b. Determine the corrected amounts for December 31, 2020, retained earnings

In this case, the amount of overstatement of the ending inventory has to be deducted from the reported retained earning since the retained earning was initially overstated by that amount.

Therefore, we have:

Corrected retained earnings = $5,415,900 - $38,040 = $5,377,860

3 0

4 years ago

[The following information applies to the questions displayed below.]

Orlov [11]

Answer:

Pose-for-Pics

Effects on the accounting equation:

Assets = Liabilities + Equity

Aug 1 Cash +$9,000 Equipment +$38,700 = M. Harris, Capital +$47,700

Aug 2 Cash -$2,300 Prepaid Insurance +$2,300

Aug 5 Cash -$1,710 Supplies +$1,710

Aug 20 Cash +$2,650 = Revenue +$2,650

Aug 31 Cash -$870 = Utilities Expense -870

Total assets $49,480 = Total equity $49,480

Explanation:

a) Data and Analysis based on the accounting equation:

August 1 Cash $9,000 Equipment $38,700 M. Harris, Capital $47,700

August 2 Prepaid Insurance $2,300 Cash ($2,300)

August 5 Supplies $1,710 Cash ($1,710)

August 20 Cash $2,650 Service Revenue $2,650

August 31 Utilities ($870) Cash ($870)

8 0

3 years ago

g Most economists use the aggregate demand and aggregate supply model primarily to analyze a. short-run fluctuations in the econ

nika2105 [10]

Answer:

a. short-run fluctuations in the economy.

Explanation:

Most economists use the aggregate demand and aggregate supply model primarily to analyze short-run fluctuations in the economy.

This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

On a standard Aggregate demand (AD)-Aggregate supply (AS) curve, the y axis denotes the Price (P) of goods and services while the x axis typically denotes the Output (Q) of final goods and services.

In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price) while a rightward shift in the aggregate demand (AD) curve also cause output to increase and rise in prices.

The short-run nominal fluctuations basically cause a change in the level of production. In the short-run, as a result of a shift in the aggregate supply; an increase in money consequently to result in increase the level of production (output).

Hence, more goods are produced as a result of the increased output (supply) and more goods would be purchased as a result of their lower prices.

6 0

3 years ago

Which decision-making models best describe how decision-making takes place in the research and development laboratory of a major

g100num [7]

Answer:

Garbage-can model

Explanation:

The decision-making models that best describe how decision-making takes place in the research and development laboratory of a major drug company is the Garbage-can model, this is because the research and development laboratory is a complex and unstable environment

decisions taken in a research laboratory are mainly unpredictable and uncertain as most solution are turned in problems first before another solution can be created

4 0

4 years ago

For years, Ferrari has been known as the manufacturer of expensive luxury automobiles. The company plans to attract the major se

Norma-Jean [14]

Answer:

Answer to each part of the question is given below separately under specific headings with detailed explanation.

Explanation:

a) Branding strategy recommendation

The branding strategy they should opt is a multi-branding strategy, in which a company's objective is to market more than one product and/or brand under the same hood in order to increase their overall market share. This strategy is somewhat used by other known car manufacturers such as Toyota (Lexus), Honda (Acura) etc.

b) Branding strategy trade-offs

The trade-off with this strategy is that the attention of Ferrari would be diverted from their main market segment and therefore, they will not be providing new products to the luxury market.

This will give the other companies in the same market segment the opportunity to increase their market share in the same segment.

c) Opinion on the trading-down strategy

It is fairly a risk for Ferrari to opt for the trading down strategy. This is due to the fact that their main market and objective is the luxury market to buy their expensive cars. Focusing on the new strategy could hurt their brand equity and this may impact their loyal buyers.

However, such could be avoided if they market this strategy with a foreign brand name and promote the name under the Ferrari hood by saying that the foreign brand has been designed by the Ferrari. Keeping the original Ferrari name and objective separate from this brand.

5 0

3 years ago