Which learned skill will help Jude develop a solid career in the accounting field?

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or ser

AlladinOne [14]

Answer: Expense budget approach

Explanation: Budgeting is a process of creating an itemized summary of intended expenditure; usually coupled with expected revenue for a particular institution, activity or time-frame. An expense budget approach is one in which managers of a division are given a fixed budget. After all expenses are made and recorded, the managers are then evaluated on the basis of their ability to produce goods or services given the amount of money made available.

8 0

3 years ago

ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following

lara [203]

Answer:

a. ROI = income / Assets

Book Value Current Value

Software Division 0.175 0.13

Consulting Division 0.164 0.182

Venture Capital Division 0.093 0.088

Workings:

i. Book value

Software Division = 12,250/70,000=0.175

Consulting Division = 16,400/100,000=0.164

Venture Capital Division = 56,730/610,000 =0.093

ii. Current value

Software Division = 11,700/90,000=0.13

Consulting Division = 20,020/110,000=0.182

Venture Capital Division= 51,920/ 590,000=0.088

b. Residual income = Income - {Asset x Return on capital 12% }

Book Value Current Value

Software Division 3850 900

Consulting Division 4400 6820

Venture Capital Division -16470 -18880

Workings:

i. Book value

Software Division = 12,250-(70,000*12%)=3850

Consulting Division = 16,400-(100,000*12%)=4400

Venture Capital Division = 56,730-(610,000*12%) =-16470

ii. Current value

Software Division = 11,700-(90,000*12%)=900

Consulting Division = 20,020-(110,000*12%)=6820

Venture Capital Division= 51,920-(590,000*12%)=-18880

c. Economic Value Added ( EVA ) = Net Income After Tax - ( Amount of Capital x Weighted Average Cost of Capital [WACC] )

C. Software Division

(Value Base)

Book Current

Sales 100,000 100,000

Income 12,250 11,700

Assets 70,000 90,000

Liabilities 10,000 10,000

Capital invested 60,000 80,000

(Asset - Liabilities)

Tax on Income(30%) 3675 3510

Income after Tax 8,575 8,190

(Income - Tax on

income) (A)

Capital invested 6,000 8,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,575 190

Consulting Division

(Value Base)

Book Current

Sales 200,000 200,000

Income 16,400 20,020

Assets 100,000 110,000

Liabilities 14,000 14,000

Capital invested 86,000 96,000

(Asset - Liabilities)

Tax on Income(30%) 4920 6006

Income after Tax 11,480 14,014

(Income - Tax on

income) (A)

Capital invested 8,600 9,600

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,880 4,414

Venture Capital Division

(Value Base)

Book Current

Sales 800,000 800,000

Income 56,730 51,920

Assets 610,000 590,000

Liabilities 40,000 40,000

Capital invested 570,000 550,000

(Asset - Liabilities)

Tax on Income(30%) 17019 15576

Income after Tax 39,711 36,344

(Income - Tax on

income) (A)

Capital invested 57,000 55,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) -17,289 -18,656

8 0

2 years ago

Which of the following is a security best practice when using social networking sites?.

sattari [20]

Answer:Use only personal contact information when establishing your personal account

Explanation:

3 0

2 years ago

For the period from 2019 to 2020, a company reports the following: Percentage change in sales 30% increase Percentage change

timama [110]

Answer:

If sales are $5,000,000 in 2019, the sales in 2020 will be

$6,500,000

Explanation:

a) Data and Calculations:

2019 2020 Change

Percentage change in sales 100% 130% 30% increase

Percentage change in cost of

goods sold 100% 120% 20% increase

Percentage change in

gross profit 100% 125% 25% increase

Sales are in 2019 = $5,000,000 $6,500,000 ($5 million * 130/100)

Alternatively, the 30% increase can be computed, to get $1,500,000 ($5,000,000 * 30%). This change in sales is then added to the 2019 sales figure to get $6,500,000, which is the sales in 2020.

3 0

2 years ago

Which statement best describes Subaru of Indiana?

uranmaximum [27]

Answer: a. The only US-based auto plant whose pristine grounds have been designated a wildlife habitat .

Explanation:

The Subaru of Indiana Automotive assembly plant is a Japanese company based in Indiana, USA. The assembly plant is environmentally sustainable, by reducing the waste produced to 0% because 100% of its product is used or recycled.

Also, in 2003, the assembly plant was declared a wildlife refuge, by decoupling 300 acres of forest for wildlife conservation, unique to an industrial production plant.

I hope this information can help you.

5 0

3 years ago