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Lilit [14]
3 years ago
8

The Merry Co. has current annual sales of​ $350,000 and a net profit margin of​ 6%. Sales are expected to increase by​ 5% annual

ly while the profit margin is expected to remain constant. What is the projected afterminus−tax earnings for two years from​ now?
Business
1 answer:
Gelneren [198K]3 years ago
8 0

Answer:

$23,153

Explanation:

Given that,

Current annual sales = $350,000

Net profit margin =​ 6%

Sales are expected to increase by​ 5% annually.

Sales two years from now:

= Sales in year 0 × (1 + Growth of year 1) × (1 + Growth of year 2)

= $350,000 × (1 + 5%) × (1 + 5%)

= $350,000 × 1.05 × 1.05

= $385,875

Profit margin = 6% of sales two years from now

                     = 0.06 × $385,875

                     = $23,153  

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To obtain a change of the zoning for a particular property, for example, from residential to commercial, a property owner would
FrozenT [24]

Answer: Zoning Map Amendment?

Explanation:

Zoning Map Amendment is an official document showing that there is a change in the way the land or property is divided into zones within a district and also the way it is being used either for industrial, residential or business purpose.

It is also known as Rezoning, this process can only begin if requested by town council, town manager or the owner of the property, this is done through application which has to be submitted 30days ahead to the committee meeting.

7 0
3 years ago
The financial statements of Friendly Fashions include the following selected data (in millions):
Anni [7]

Answer:

Friendly Fashions:

Ratios Calculations in 2018:

1) Return on Equity = Net Income divided by Equity x 100

Return on Equity = $170/$1,780 x 100 = 9%

2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%

3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24

4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3

Explanation:

1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.

2) Return on the market value of equity: This measures the profit yield on the stock market capitalization.  It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding.  It is also called the market capitalization.

3) Earnings per share: This is a measure of a company's profitability.  It can be used as an indicator to pick stock to buy.  To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.

4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings.  It is also called the price multiple and earnings multiple.  It shows how much an investor can pay in dollars in order to earn a dollar of earnings.  It also indicates if a stock is overvalued or undervalued.

8 0
3 years ago
According to the research literature on strategy and structure, the relationship between strategy and structure most strongly im
Marrrta [24]

Answer: Option B

Explanation: An organization and arrangement of interrelated elements can be defined as the structure of the primary subject. In simple words it can be described as many party of an element put together.

Strategy can be defined as the method or plan made to achieve future goals or objectives.

a. Strategy formulation cannot be done with out taking into consideration the structure. for example- a company with debt in its financial structure cannot take same risks as company with equity in its financial structure.

b. wrong strategy formulation can effect structure severely similarly structure of the organisation must be taken into consideration before

making strategy.

c. Structure of organisation is the primary consideration in making strategy thus its influence will be high.

Therefore right answer is statement B .

8 0
3 years ago
If the economy is experiencing excess demand that is causing inflation, the inflationary pressures can be eliminated by reducing
snow_lady [41]

Answer:

The correct answer is True.

Explanation:

Excess demand is a situation in which, for a given price, the amount that consumers want to buy is greater than the stock offered by sellers.

Otherwise, an excess of aggregate demand causes prices to rise and inflation is generated.

Well, given an excess of aggregate demand, with the intention of getting a price drop, the money supply will have to be reduced and interest rates increased, measures of a restrictive monetary policy.

The application of a restrictive monetary policy contributes to lower production and reduce inflation, although there is a possibility that it will generate a decrease in employment.

The reduction of public spending is an optimal solution to reduce possible inflationary pressures on the side of aggregate demand, said the Center for Economic Studies of the Private Sector (CEESP). Although the decline in public spending can also affect the pace of growth, it is the best way to moderate aggregate demand without additional effects and to stabilize financial markets.

6 0
3 years ago
A guitar manufacturer is considering eliminating its electric guitar division because its $83,720 expenses are higher than its $
makkiz [27]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Particular                Avoidable expense ($) Unavoidable expense ($)

Sales                                   76,540

Less - Cost of goods sold -59,000

Less-Direct expenses          -12,100                                  2,650

                                       (9,450+2,650)

Less -Indirect expenses -3,290                                        2,400

                                          (890+2,400)  

Less - Service department costs -9,330                           2,530

                                           (6,800+2,530)

Sum of Total expenses         83,720                                     7,580

Net income                            -7,180                                     -7,580

Electric guitar division revenue = $76,540

Avoidable Expenses =  Electric Guitar Division Expenses - Unavoidable Expenses

= $83,720  - $7,580

= $76,140

Revenue=Electric Guitar Division Revenue-Avoidable Expenses

= $76,540 - $76,140

= $400

According to the analysis, company will end up with the loss if company continues production. But if they keep the production the future loss will be decrease than the present loss. So they should not be eliminated the production.

8 0
3 years ago
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