Answer:
Even though the information is not complete, all that we need is included in the question. Starbucks provides free internet service to their customers as part of the Starbucks Experience, therefore, the cost of providing free internet must be reported as an operating expense on the income statement. This cost must be treated similarly to any other operating expense, e.g. cleaning expenses, wages, insurance expense, etc.
Answer:
d. 5.14%.
Explanation:
Calculation to determine the best estimate of the after-tax cost of debt.
First step
Based on the information given we would make use of rate formula in excel.
=rate(nper,pmt,-pv,fv)
Where,
nper= coupon every six months for 20 years = 40 coupon payments
Pmt =$1000*7.25%*6/12=$36.25
Pv = $875
Fv =$1000
Let plug in the formula
=rate(40,36.25,-875,1000)=4.28% semiannually
=4.28% *2=8.56% annually
Now let calculate the after tax cost of debt using this formula
After tax cost of debt=8.56%*(1-t)
Where,
t represent tax rate of 40%
Let plug in the formula
After tax cost of debt=8.56%*(1-0.4)
After tax cost of debt=5.14%
Therefore the best estimate of the after-tax cost of debt is 5.14%
Answer:
d. dismissing all managers who fail to achieve operational goals specified in the budget
Explanation:
The budget, no matter how well it's done, It's a forecast.
Price can change without the company being able to intervene, the same goes for consumer demand, foreign currency rates changes, and other variables in the budget.
Having that in mind, the accounting can measure the variance and check the efficiency and price influence in the result below expected.
Therefore, dismiss immediately after not achieving a goal is not the purpose of a budget