Answer:
The choices that apply as common-size income statements are options
A. Operating expenses have decreased as a percentage of sales; this appears favorable unless this decline has contributed toward the fall in sales
B. The level of interest as a percentage of sales has increased significantly; this suggests that the firm has too much debt.
C. Sales have declined and cost of goods sold has increased as a percentage of sales, probably due to a loss of productive efficiency.
Explanation:
A) when operating expenses are minimized, profit is maximized but if there is decrease in sales as a result of reduction in operating expenses, loss is inevitable.
B) When a business is funded with a loan facility, there is a projection on the sales or sales forecast that will generate funds for loan repayment and still make the business profitable. If that sales level is not met the debt level will increase.
C) When sales decline in the face of constant operating expenses, costs of goods sold will increase, this is productive inefficiency and a business can not be sustained if this situation persists.
Answer:
C. Return to the old allocation method, which produces a lower amount of estimated cost.
Explanation:
Base on the scenario been described in the question, after Harry's co implemented an activity base costing system, this is as a result of the ABC allocations, the cost of one of the company's products was determined to be above its current selling price, also, they can not increase price due to the competition it will better for them to return to the old allocation method, which produces a lower amount of estimated cost. That will be the best thing to do
Answer:
The correct answer is Option B.
Explanation:
Stockholders' equity comprises retained earnings, common stock and premium on common stock. Retained earnings are an accumulation of net income or loss over years. The effects of the transactions in Year 1 are as follows:
1) Acquired $1,050 cash from the issue of common stock - increase common stock and cash by $1,050
2) Borrowed $520 from a bank - this increases Cash and Liabilities by $520 - nil effect on stockholders' equity
3) Earned $750 of revenues - this increases net income/Retained Earnings by $750
4) Paid expenses of $270 - reduction in net income/Retained Earnings by $270
5) Paid a $70 dividend - reduces Retained Earnings by $70
Overall, stockholders' equity = $1,050 + $750 - $270 - $70 = $1,460
The best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.
Talking to the employee will reveal if they are out-group members and enable Anna-Marie to understand their views.
<h3>Who is an out-group member?</h3>
An out-group member is an individual in an organization who does not identify themselves as part of the group or unit.
An out-group member does not pursue the same goals as other group members and most times feels excluded from the group.
<h3>Answer Options:</h3>
A- She should talk to the employee to understand their perspective.
B- She should redistribute the company policy describing inclusion expectations.
C- No action is required; she is already acting ethically.
D- She should start documenting her efforts at inclusion.
Thus, the best action that Anna-Marie should take next is <u>A- She should talk</u> to the employee to understand their perspective.
Learn more about out-group members at brainly.com/question/7548841