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Jobisdone [24]
2 years ago
12

Butler Automotive developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month. As more

drivers bring in their vehicles, Butler expects to also do more oil changes and brake repairs. As a result, inventory levels of oil and brake parts must be increased by $5,000. Revenues from oil changes and brake jobs are expected to increase by $4,000 per month. An example of an increase in net working capital requirements from the new diagnostic testing procedure is the
A) increase in inventory levels of oil and brake parts of $5,000.
B) increase in revenue of $10,000 per month for the diagnostic testing.
C) increase in revenues from oil changes and brake jobs of $4,000 per month.
D) increase in all activities totaling $19,000 per month.
Business
1 answer:
Bas_tet [7]2 years ago
6 0

Answer:

A

Explanation:

Working capital are the components of the current assets that represents liquidity , readily available for day to day business operation.

It is made up of cash , receivable , payable , inventory balance .

Due to the new development in the business of Butler automotive , there is an upsurge in the demand for oil which has led to the increase in the oil inventory to the tune of $5,000

This means that the required working capital of Butler also has to increase to meet up with the demand.

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On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and
Mademuasel [1]

Answer:

Leary Company

The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:

= $320,000

Explanation:

a) Data and Calculations:

0% Note payable = $400,000

Payment period = 5

Annual installmental payments = $80,000

Prevailing rate of interest for similar note = 8%

Schedule

Period PV                 PMT            Interest               FV

1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09

2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66

3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71

4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44

5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00

Total                     $400,000.00    $-208,349.93

Carrying value

Ending value   = $400,000

Interest expense   -47,332.01

Cash repayment   -32,667.99

Carrying value = $320,000

6 0
3 years ago
Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 year
Margarita [4]

Answer:

Bond M= $21,914.32.

Bond N= $6,131.14

Explanation:The price of any bond (or financial instrument) is the PV of the future cash flows. Even though Bond M makes different coupons payments,to find the price of the bond,we just find PV for the cash flows

5 0
3 years ago
You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo
Bingel [31]

Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is  what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

<h2>Present value of annuity= A x [(1-(1+r)-n)/r]*(1+r) </h2>

Where the A represents Annuity = or $20

The r represents the rate or 1.5%

and the n represents the number of periods which is 6 months

Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

= 20 x [(1-0.91454219251)/0.015]*1.015

= 20*5.782644973

=$115.65

Now that the loan amount is known, the Total Interest can be calculated as follows

Total Interest= number of payments x monthly payments) - the loan amount (calculated above)

= 20 x 6 -115.65

= 120-115.65

The total interest = $4.35

8 0
3 years ago
D
trasher [3.6K]

The type of organizational learning that involves a formal approach to familiarize a new staff member with the organization's values and policies is <u>B. employee orientation</u>.

<h3>What is organizational learning?</h3>

Organizational learning involves the process of gaining experience and creating knowledge for organizational improvement.

Organizational learning enables employees to:

  • Share insights
  • Brainstorm together
  • Solve problems
  • Improve performance.

Thus, familiarizing new staff members with the organization's values and policies involves <u>employee orientation</u>, not employee mentorship, training, or development.

Learn more about employee orientation as part of organizational learning at brainly.com/question/11815347

#SPJ1

7 0
1 year ago
What are operating expenses?
skad [1K]

Answer:

see below

Explanation:

Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost,  accounts adjustments, and other non-recurring costs.

Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries,  employee benefits, transport,  depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.

3 0
3 years ago
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