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a_sh-v [17]
3 years ago
9

You would like to compare your firm's cost structure to that of your competitors. However, your competitors are much larger in s

ize than your firm. Which one of these would best enable you to compare costs across your industry? Multiple Choice a. Pro forma balance sheet b. Common-size income statement c. Statement of cash flows
Business
1 answer:
Mashutka [201]3 years ago
6 0

Answer:

b. Common-size income statement

Explanation:

The common-size income statement refers to the income statement which show the each item of the income statement with respect to the percentage of sales revenue.

It helps to analyze the company overall productivity, financial position, performance of the company that helps the company to compare with its competitors.

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How can you determine your net worth?
Mamont248 [21]

Answer:

How much money do you make in 1 year that is your net worth

Explanation:

8 0
3 years ago
For which capital component must you make a tax adjustment when calculating a firm’s weighted average cost of capital (WACC)?
Basile [38]

Answer:

1. Debt

2. 8.75%

3. 8.85%

4. 6.195%

Explanation:

For computing the tax adjustment, the Debt capital component is taken

The normal formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

The computation of the pre-tax cost of debt and after-tax cost of debt is shown below:

1. The after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 12.50% × ( 1 - 0.30)

= 8.75%

The NPER represents the time period.  

Given that,  

Present value = $1,382.73

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 13%  = $130

NPER = 20 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

3. The pretax cost of debt is 8.85%

4. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 8.85% × ( 1 - 0.30)

= 6.195%

4 0
4 years ago
Create a crows foot erd using a specialization hierarchy if appropriate. Granite sales company keeps information on its employee
levacccp [35]

Answer:

Check the explanation

Explanation:

From the below attached image Crow Foot Notation, the relationship between Super class and Sub class is shown clearly, i.e

Employee is super class, and the different types of employees are represented by specialization of three types, there are Salary, Hourly and Contract based. Again the Salary based employee is super class of Sales Employee, representing partially participation.

From the below attached image notation, "d" represents distinct i.e distinct employees of type Salary, Hourly and contract.

And "O" represents, Overlapped, means same object is aggregating two specific outcomes which are overlapped.

They are Salary based and Sale wages based employee.

7 0
3 years ago
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year,
Sophie [7]

Answer:

The appropriate answer is "$22,305".

Explanation:

The given values are:

Estimated uncollectible,

= $22,750

Credit balance in allowance,

= $445

Now,

The bad debt expense will be:

= Estimated \ uncollectible-Credit \ balance \ in \ allowance

By substituting the values, we get

= 22750-445

= 22305 ($)

5 0
3 years ago
Treasury stock that had been purchased for $4,566 last month was reissued this month for $5,184. What would the journal entry to
miss Akunina [59]

Answer:

The answer can include both C and D. Description below.

Explanation:

We make the following records.

The treasury stock was reissued at a premium of 5184 - 4556 = $628

Since treasury stock is  credit account by nature we debit  to reduce it by the Amount of $4,566

$628 is to be credited to the paid in capital as this is premium received in excess of par value of the stock. Since there is no mention of premium or paid in capital account we may credit the Excess of Par/Common.

Hope that helps.

7 0
4 years ago
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