Answer:
1. Indication of financial statement to refer to when answering questions in the following table:
Question Financial Statement
How profitable has the firm been? Income Statement
How much of the firm's earnings are Statement of Retained Earnings
left as balance after the firm pays out
dividends to its shareholders?
2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
Explanation:
Company A's Income Statement shows its profit performance at different levels. At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service. At another level is the operating income, which is the income before interest and taxes. The next important level is the net income, which is the profit after taxes. This shows the earnings available for distribution to stockholders. The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.
Answer:
Holding period return is 5.14%
Explanation:
Return received during the holding period of timeof an investment is holding period return. It includes the Income received and Price variance of initial and current.
Holding Period Return = ( Selling Price - Purchase price )/( Purchase price x Initial Margin )
Holding Period Return = ($64.60 - $62.20)/($62.20 x 0.75)
Holding Period Retur = 0.0514
Holding Period Retur = 5.14 %
Answer:
Inventory status of “Limited Stock” means that the retailer is reporting an item quantity of 1 on hand. This last remaining unit is oftentimes a display model of the product and therefore may not be available for sale. Occasionally a retailer may indicate "Limited Stock" for high demand items as well.
Explanation:
Answer:
Accounts Payable Aging Summary
Explanation:
The account payable aging summary refers to the summary of the past due bills and the bills which are due shortly. It shows the amount which we have to pay in the prescribed time limit i.e 30 days 45 days etc
Therefore the reports which is needed to track the past due bills and that are due shortly we called as the account payable aging summary
Hence, the first option is correct
Answer:
Correct option is C.
Relying on warehousing capabilities of third parties to better manage distribution
Explanation:
Insourcing of the warehouse is practical if you want the possibility to go to the warehouse and check inventory, process orders, adjust orders or change deliveries. This makes your delivery more flexible, which may increase customer satisfaction. By insourcing the warehouse, you can also offer your customer that he can pick up his order at the warehouse. In that way the customer gets more delivery options and is able to save shipping costs. An insourced warehouse can also be beneficial, if your product range is constantly changing, because then you do not have to coordinate the changes with an external 3PL player.