<span>During the introduction stage of a product's life cycle, typically consumers are learning about the product. The product has just been launched and advertisements are made grabbing (hopefully) their new customers attention. During this stage, customers are getting filled with knowledge about a new product or service and how it can benefit them. </span>
Answer:
<u>BALANCE SHEET</u>
<em>ASSETS </em>
Cash 1410
Accounts Receivable 950
Prepaid insurance 110
Stock investments 1290
Inventory 1107
Equipment 2560
Accumulated Depreciation Equipment -670
Land 3240
TOTAL ASSETS 9997
<em>LIABILITIES</em>
Accounts Payable 884
Income tax payable 185
Mortgage payable 3640
Notes payable 201
Salaries and wages payable 272
TOTAL LIABILITIES 5182
NET EQUITY
Retained earnings (beginning) 1600
Common stock 1320
Dividends -375
<em>Net Income 2270
</em>
TOTAL NET EQUITY 4815
TOTAL LIABILITIES+TOTAL NET EQUITY 9997
<u>INCOME STATEMENT</u>
Sales revenue 5240
Cost of goods sold -1110
Gross Profit 4130
Salaries and wages expense -650
Insurance expense -260
EBITDA 3220
Depreciation expense -285
EBIT 2935
Interest expense -450
EBT 2485
Income Tax expense -215
<em>NET INCOME 2270</em>
Explanation:
According to the accounting equation the total of the assets should be equal to the sum between the liabilities and net equity. One of the components of the net equity is the net income that can be visualized in the final line of the income statement.
Answer:
Loss = $200,000
Stock basis = $700,000
Explanation:
The computation of loss and stock basis is shown below:-
Since there is exchange in deferred tax so no loss will be recognized
Stock basis = Carryover Basis - Cash received
= $1,200,000 - $500,000
= $700,000
Therefore, if Celeste sell stocks $700,000, she will be in loss of $200,000
= $700,000 - $500,000
= $200,000
Answer:
IRR = 5.05%
Explanation:
Internal rate of return (IRR) refers to the interest rate that makes the net present value (NPV) both the positive and negative cash flows of an investment equal zero.
See the two attached, an excel file and a photo file, for the calculation and further explanation. Note that the two files contain the same information but they are both attached to ease learning.
Answer:
$91,900
Explanation:
The computation of net sales revenue is shown below:-
Here, for reaching the net sales revenue we add the sales revenue and deduct the sales return and allowances with sales discounts
Net sales revenue = Sales Revenue - Sales Returns and Allowances - Sales Discounts
= $95,000 - $1,000 - $2,100
= $91,900
Therefore we have applied the above formula.
