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lakkis [162]
3 years ago
10

1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe

these trends. (a) and (b) are separate unrelated circumstances. a) Sales increased by a total of 30% in the prior three years, while Days of Sales in Inventories increased also by 30% in each of these three years. Costs of Goods Sold to Sales remained constant. b) Gross property, plant, and equipment increased by a total of 30% during the prior three years. Operating and administrative expense increased relative to sales by 30% in the prior three years. Sales remained constant. Costs of goods sold to sales remained constant. ANSWER:
Business
1 answer:
marta [7]3 years ago
6 0

Answer:

Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:

a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales.  This result will be different with an increase by a similar margin in the Cost of Goods Sold.

b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.

Explanation:

The net earnings to sales is an expression of the ratio of the net income to the sales revenue.  The net earnings result after deducting all costs from sales revenue.  The net earnings to total book assets are the same expression as the Return on Assets.

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West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond
MaRussiya [10]

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 ×  7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.

7 0
3 years ago
Encouraging buyer feedback and focusing on creating value for the buyer are both key requirements for an effective _____. Group
german

Answer:

<u>Sales Dialogue.</u>

Explanation:

Feedback is an important strategic tool for the sales area.

Encouraging the buyer to provide feedback is an effective sales dialogue strategy, which focuses on creating value for the buyer, as creating value for a customer is related to the customer's ability to exercise his opinion about the product or the purchasing process, in addition to feeling valued and improving the perception of the company, which values ​​the feedback of its customers.

In addition to creating value, feedback is a tool for correcting problems and processes resulting from a service or a product and service, which enables a company to correct possible errors found and improve the positive points observed in the analyzed feedbacks.

7 0
3 years ago
On January 1, 2017, Marigold Corp. had Accounts Receivable of $59,400 and Allowance for Doubtful Accounts of $3,600. Marigold Co
Mnenie [13.5K]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies
FrozenT [24]

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

6 0
3 years ago
Beckett, Inc. reports the following cost information for​ March: Cost of Goods Manufactured $ 73 comma 000 Manufacturing Overhea
pentagon [3]

Answer:

Beckett, Inc.

Cost of Goods Manufactured Statement

Direct Materials Used      25, 140

Direct Labor $ 20,280

Manufacturing Overhead 18 ,900

Total Manufacturing Costs  $ 64,320

March 1 ​Work-in-Process Inventory,  9, 680

Cost of Goods Available for  Manufacture $ 74,000 ​

March 31 Work-in-Process Inventory, 1, 000

Cost of Goods Manufactured $ 73,000

March 1 Finished Goods​ Inventory, 8, 000

Cost of Goods available for sale $81,000

March 31 Finished Goods​ Inventory,  2, 000

Cost of Goods Sold $ 79,000

7 0
3 years ago
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