Answer with Explanation:
Following are the benefits of using departmental Income Statements:
- Gives an understanding of where the company lacks efficiency
- Helps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.
- The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.
- It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.
- It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.
The above benefits makes the department income statements important for the managerial use.
Answer:
The book value per share is $7 and there are a total of 6 million shares which means in order to find the equity value of the company we need to multiply the book value per share and the total number of shares.
So the value of equity is $42 million
The debt of the company is 70 million plus 50 million = $120 million
The total capital of the company is 120 million plus 42 million = $162 million
The Equity/Value = 42/162=0.2592=25.92%
The Debt/Value= 120/162=0.7407= 74.07%
Explanation:
Answer:
The answer is a the interest rate to fall as there is currently a surplus of loanable funds.
Explanation:
Investors who wish to borrow $100 million represent quantity of money demand and savers who wish to save $125 million. There is surplus of loanable funds SS > DD = $125 million > $100 million
Answer:
Pay for what?
Explanation:
Most things require you to pay a fee.
Answer:
-$35
Explanation:
The computation of the change in net working capital is as follows:
Net working capital = current assets - current liabilities
For 2014,
net working capital i s
= ($3,135 - $1,545)
= $1,590
And,
for 2015,
net working capital is
= ($3,100 - $1,545)
= $1,555
So, the change in net working capital is
= ($1,555 - $1,590)
= -$35
