Answer:
0.6
Explanation:
Variable Expense Ratio is calculated by taking Variable Expense and dividing it by Sales. This ratio indicates how much of the variable expense is incurred by company for each $1 Sales.
So, variable expense ratio is .6 or 60% (33,000 / 55,000).
Such questions also require the calculation of Contribution Margin Ratio which is calculated by taking Contribution Margin and Dividing it by Sales. This ratio tells us how much the company generates after covering variables expenses when the sales are $1.
So, Contribution Margin Ratio is .4 or 40% (22,000 / 55,000).
Answer:
c. payment for interest on short-term notes payable
Explanation:
Cash flow statement shows positive and negative cash flows that result from activities of a business. It is divided into 3 parts: cash flow from operating activities, cash flow from investing activities, cash flow from financing activities.
Cash flows form operations involves cash flows from regular business activities. A positive change in assets represents an outflow and a negative change in liability represents an inflow.
Items considered under operating activities include inventory, accounts receivable, accrued revenue, accounts payable, and tax liabilities.
Payment for interest on short-term notes payable is a account payable item, so it is included in cash flow from operations
The answer to your question is b
Answer: Check attachment
Explanation:
The cash collection was calculated as:
a. (90-45)/90 = 1/2
Q1 = 1700 + (1/2 × 3900)
= 1700 + 1950
= 3650
Q2 = 1950 + (1/2 × 4700)
= 1950 + 2350
= 4300
Q3 = 2350 + (1/2 × 4300)
= 2350 + 2150
= 4500
Q4 = 2150 + (1/2 × 3600)
= 2150 + 1800
= 3950
Check the attachments for further information.
Answer:
Economic changes would not be considered a risk that needs to be analyzed as part of the risk assessment process.
Explanation:
Risk assessment is the process of identifying events that could potentially cause harm, to an individual, business or the environment and analysing them to get an acceptable tolerance level.
Risk assessment determines the likelihood of an event happening, it's impact, and tolerability the entity can take.
The environment is a major consideration of risk assessment, as risk is always inherent as business interacts with its environment.
