Which of the following is an objection to relying solely on Return on Market Investment (ROMI) results?

1 answer:

4 0

The statement that <span>is an objection to relying that solely on Return on Market Investment (ROMI) results is that </span>"ROMI requires knowing what would have happened without the marketing expenditure." ROMI <span> is the contribution to profit attributable to </span>marketing<span> (net of marketing spending), divided by the marketing 'invested' or risked.</span>

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Wildhorse Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $40,100

olga55 [171]

Answer:

31-Dec-19

Dr. Lease receivables $ 180,498

Cr. Sales revenue $180,498

Dr. Cost of goods sold $ 170,000

Cr. Inventory $ 170,000

Explanation:

The lease is recorded on the present value of all the payment to be made in the future.

We will use the present value of annuity formula

Present value of Lease = P [ ( 1 - ( 1 + r )^-n ) / r ]

where

P = annual payment = $40,100

r = implicit rate = 11%

n = numbers of payments = 6 payments

Placing values in the formula

PV of Lease = $40,100 x [ ( 1 - ( 1 + 11% )^-6 ) / 11% ] = $169,645

Now calculate the present value of guarantee residual value

PV of guarantee residual value = $20,300 x ( 1 + 11%)^-6 = $10,853

Fair value of lease = Present value of Lease payment + Present value of guarantee residual value

Fair value of lease = $169,645 + $10,853 = $180,498

Cost of equipment will be recorded in the cost of goods sold and Inventory as well.

We will pass two separate journal entries first to record the lease receivable and second to record the cost of the equipment.

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3 years ago

Which of the following about associate's degrees are true? a. You may transfer part or all of your associate's degree courses to

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C, associates degree doesn't offer financial aid

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3 years ago

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Jeanine, the operations manager of an auto dealership, has been redesigning operations. She feels there are many places where th

Pachacha [2.7K]

Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.

Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.

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As Lily files her taxes, she learns that her federal total tax due ends up being $206. According to her Federal income tax withh

adoni [48]

The tax refund that Lily can expect to get back from the tax authorities will be $15.80.

A tax simply means the compulsory levy that's paid by the people and companies to the government.

In this case, the tax refund that Lily can expect back will be:

= 7.65% × $206

= $15.80

In conclusion, the correct option is $15.80.

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