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3 years ago

What are the main purposes of a budget?

2 answers:

7 0

In the context of business management, the purpose of budgeting includes the following three aspects:

•A forecast of income and expenditure (and thereby profitability)

•A tool for decision making

•A means to monitor business performance

Aleks [24]3 years ago

4 0

Following a budget will keep you out of debt if you are currently in one.

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Emerald Printing Company projected the following information for next year:

elena55 [62]

Answer:

$200,000

Explanation:

Selling price per unit = $60.00

Contribution margin per unit = $45.00

Total fixed costs = $150,000

Tax rate = 30%

Contribution margin ratio = Contribution margin ÷ Selling price

= $45 ÷ $60

= 0.75

Hence,

Break-even point =Total Fixed costs ÷ Contribution margin ratio

= 150,000 ÷ 0.75

= $200,000

5 0

3 years ago

The following statements are true. Explain why. a. If a bond’s coupon rate is higher than its yield to maturity, then the bond w

krok68 [10]

Answer:

A Bond's current market value represented by $B_{0}$ is the present value of a bond as on today. Present value of a bond is it's future cash flows in the form of coupon payments and principal repayment discounted at investor's expectation in the market also referred to as Yield to maturity(YTM).

Present value of a bond is given by the following equation,

$B_{0} = \frac{C}{(1\ +\ YTM)^{1} } +\ \frac{C}{(1\ +\ YTM)^{2} } \ +\ ......+\ \frac{C}{(1\ +\ YTM)^{n} } \ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

where C= Annual coupon payments

YTM = Yield to maturity/ cost of debt/ market rate of return on similarly priced bonds

RV = Redemption value of bond

n = number of years to maturity

<u>a. A bond's coupon rate is higher than it's yield to maturity, then the bond will sell for more than face value.</u>

Hence, if the company pays more interest than what is paid in the market on similarly priced bonds, such bonds shall sell at more than their face value.

<u>b. If a bond's coupon rate is lower than it's yield to maturity, then the bond's price will increase over it's remaining maturity.</u>

Similarly, if a bond pays lower rate of interest than the market rate of interest on similarly priced bonds, the bond shall sell at lower than it's face value and the price will increase over the remaining life of such bonds.

6 0

3 years ago

A new truck is purchased on January 1, 20X6. The truck cost $10,000, has a 5-year life, and a $2,000 residual value. Given a Dec

Elena-2011 [213]

Answer:

20X9 depreciation expense is $160

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20%.

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

In 20X6, depreciation expense = 40% x $10,000 = $4,000

At the beginning of the year 20X7, the truck cost's book value is $10,000-$4,000 = $6,000

In 20X7, depreciation expense = 40% x $6,000 = $2,400

In 20X8, depreciation expense = 40% x ($10,000 - $4,000 - $2,400) = $1,440

Accumulated depreciation at December 31 20X8 = $4,000 + $2,400 + $1,440 = $7,840

Book value at December 31 20X8 = $10,000 - $4,000 - $2,400 - $1,440 = $2,160

In 20X9, depreciation expense = $10,000 - $2,000 - $7,840 = $160

The 20X9 depreciation expense was $160 which is less than the actual $864 (40% of $2,160). It was done to keep the residual value as estimated ($2,000)

4 0

3 years ago

Domino's Pizza was 50 years old in 2010. Visit the company's business-related website (www.dominosbiz) and read the company prof

RUDIKE [14]

Answer:

Consider the following paragraph I wrote

Explanation:

I think the firm focuses on the economic perspective in describing its competitive advantage. In the economic perspective, a firm focuses on how much economic value it creates through its competitive advantage.

In the company profile, Domino's focuses on how much economic value it creates for its sub-franchisees, franchisees and the parent company. It focuses more on the chain which creates economic value for the entire Domino's ecosystem consisting of the parent company, franchisees, and the sub-franchisees. So, I think the firm focuses on economic perspective in describing its competitive advantage.

4 0

3 years ago

Which of the following scenarios might indicate that you have been a victim of identity theft?

shutvik [7]

Where are the answers? Don't have much to work with...

4 0

3 years ago