Answer:
Journal Entries
Date Accounts Titles Debit Credit
Nov 1 Warranty expense $3,120
($52,000 * 6%)
Estimated warranty payable $3,120
Nov 20 Estimated warranty payable $1,600
Cash $1,600
Dec 31 Vacation benefit expense $6,000
Vacation benefit payable $6,000
Dec 31 Employee bonus expense $1
,515
Employee bonus payable $1,515
<u>Working</u>
Bonus = 3% * (Net income-Bonus)
Let bonus= x
x = 3% * (52,000 - (1+x))
x = 0.03 * (52,000- (1+x))
x = 1560 - 1.03
1.03x = 1560
x = $1,560 / 1.03
x = $1,514.5631
Bonus= $1,515
Answer:
a) c) d)
Explanation:
a) The seller does not have to decide who gets credit - this is done by the card issuer
c) seller receives cash sooner than if credit is granted directly to the customers - The cash is received from the card issuer
d) may allow seller to increase sales volume - As cash is available to those who otherwise might not have it for purchases
Answer: Logistics
Explanation: Logistics refers to the group of complex operation that are to be performed within an organisation by different individuals under the guidance of various different experts of such tasks. These operations are dependent on each other for their effective performance.
Thus, we can conclude that the combination of Rinker's manufacturing, distribution and purchasing activities will collectively be called as logistics.
Answer:
net income increase of 11.25%
Explanation:
If the price p is reduced a 11% means that new price will be p(1-0.11)
New price = 0.89p
The new quantities demandes will increase a 25%, this means that the new quantities will be Q*(1+.025) = 1.25Q
So, the net income under this new circunstances will be
1.25 Q * 0.89P = 1.1125 P*Q
This means a net income increase of 11.25%
Answer:
10.23%
Explanation:
Calculation for What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant
First step is to calculate the Net income
.15 = Net income/ 375,000
Net income=.15($375,000)
Net income= $56,250
Now let calculate profit margin using this formula
Profit margin = Net Income/Sales
Let plug in the formula
Profit margin= $56,250/$550,000
Profit margin= 0.1023*100
Profit margin=10.23%
Therefore the profit margin that the firm would need in order to achieve the 15% ROE, holding everything else constant is 10.23%
