20. Which one of the following statements about national income is correct?

Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for

Stolb23 [73]

Procter & Gamble is a multinational corporation that manufactures and markets many household products is our goal is to use every opportunity we have no matter how small to set change in motion. To be a force for good and a force for growth. Compute Procter & Gamble's receivable turnover ratio and its inventory turnover ratio.

Ans.1a Account receivables turnover ratio = Net credit sales / Average trade receivables

74756 / 6447

11.60 times

*Net credit sales = Total sales * 90%

83062 * 90%

74756

*Average receivables = (Beginning receivables + Ending receivables / 2

(6508 + 6386) / 2

6447

Ans.1b Inventory turnover ratio = Cost of goods sold / Average inventory

42362 / 6834

6.20 times

Cost of goods sold = Total sales - Gross profit

83062 - (83062 * 49%)

42362

*Average inventory = (Beginning inventory + Ending inventory) / 2

(6909 + 6759) / 2

6834

Ans.2a Days' sales in accounts receivables = No. of days in year / Receivables turnover ratio

365 / 11.60

31.47 days

Ans.2b Days' sales in inventory = No. of days in year / Inventory turnover ratio

365 / 6.20

58.87 days

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3 0

2 years ago

Which of the following statements is true of franchisors?

denpristay [2]

Answer:

3. Franchisors may suffer a loss of control over how their technology and brand names are used.

Explanation:

If the brand name/reputation is tarnished somewhere, it affects every franchisor

7 0

3 years ago

Franklin Electric is presently generating earnings available to common shareholders of $7.25 per share. The firm's income tax

Sphinxa [80]

Answer:

$1.45

Explanation:

First of all we need to know what is earnings available to common shareholders (EACS).

EACS is the part of earnings which is available to common shareholders after deducting preference dividend from net income after taxes.

We can understand the as follows

Net Profit after taxes $ xxxx

Less: Preference dividend (xxxx)

Earnings available to.common shareholders xxxx

From this amount is we divide number of common stocks / shares, we will get Earnings Per Share (EPS)

EPS = Earnings available to equity shareholders / number of common stock shares

Dividend Payout Ration to common stock (given) = 20%

It means the comapny is paying 20% of EPS to common stock holders and 80% of EPS is tthe retained earnings of the company

Hence dividend to common stockholder = Earnings available.to common shareholders × dividend payout ratio

= $7.25 × 20%

= $1.45

$1.45 is the dividend which company pay to common shareholders

3 0

3 years ago

We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage value. Assume that depreciation is s

AleksandrR [38]

Solution :

a).

Particulars Details

Selling price per unit 37

Less : variable cost per unit -21

Margin per unit 16

No. of units sold per unit 70,000

Gross margin 11,20,000

Less : fixed cost - 7,25,000

Profit before depreciation and tax 3,95,000

Less : depreciation -80,500

Profit before tax 3,14,500

Less : Tax -1,10,075

Net profit per year 2,04,425

Project Cost 6,44,000

Accounting breakeven point in years 3.15

b).

Calculating the base Cash - Cash flow and NPV

Particulars Amount

Net profit per year 2,04,425

Add : depreciation 80,500

Base Cash cashflow 2,84,925

Required rate of return 15%

Present value of base cash cash flow 12,78,550

received in 8 years.

Project cost -6,44,000

NPV 6,34,550

The present value of base cash cash flow received in 8 years is calculated as Present value of annuity received at the end of each year $ 2,84,925 at the rate of interest 15% for a period of 8 years.

The sensitivity of the NPV to 500 units decrease in projected sales :

Particulars Details

Selling price per unit 37

Less : variable cost per unit -21

Margin per unit 16

Number of units sold per year 69,500

Gross margin 11,12,000

Less : fixed cost -7,25,000

Profit before depreciation and tax 3,87,000

Less : depreciation -80,500

Profit before tax 3,06,500

Less : tax -1,07,275

Net profit per year 1,99,225

Add : depreciation 80,500

Base Cash cashflow 2,79,725

Required rate of return 15%

Present value of base cash cash flow 12,55,216

received in 8 years.

Project cost -6,44,000

NPV 6,11,216

Original NPV 6,34,550

Sensitive NPV -23,334

c).

Particulars Details

Selling price per unit 37

Less : variable cost per unit -20

Margin per unit 17

No. of units sold per year 70,000

Gross Margin 11,90,000

Less : fixed cost -7,25,000

Profit before depreciation and tax 4,65,000

Less : Depreciation -80,500

Profit before tax 3,84,500

Less : tax -1,34,575

Net profit per year 2,49925

Add : depreciation 80,500

Operating cash flow 3,30,425

Original operating cashflow 2,84,925

Sensitivity of OCF 45,500

7 0

3 years ago

If a stimulus plus a response results in a satisfying outcome, the probability of that response occurring again ________. a) dec

Amiraneli [1.4K]

Answer:

The correct answer is c) increases

Explanation:

If a stimulus plus a response results in a satisfying outcome, the probability of that response occurring again increases.

When the stimulus and response produce a satisfying outcome is because the answer had given an excellent outcome, which could cause it to happen again because it generates a satisfactory feeling, and the probability to increase, goes up.

7 0

3 years ago