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3 years ago

Which of the following is NOT one of the appeals of diversifying into unrelated businesses?

Business

1 answer:

aliya0001 [1]3 years ago

7 0

Answer:

a) The relative ease of growing shareholder value by capturing cross-business financial synergies that will quickly drive the company's overall financial performance to higher levels.

Explanation:

The first option is not a benefit of entering/diversifying into an unrelated business because growing shareholder value in this way is not easy. Entering a totally unrelated business(like a product in another industry for example) to the business the company is currently in may very well diversify anD spread out the risks but isn't easily achievable in the sense that it is not easy to succeed since this is a new business that the company is venturing into and would have to work towards securing it's space in the market. Therefore growing shareholder value in this way won't be easy as shareholders may also retract

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Lemony lemonade has 3,200 gallons of lemonade in wip inventory, with 76% of materials already added. The lemonade is 50% thr

rosijanka [135]

Based on the process that Lemony Lemonade uses to make lemonade, the equivalent units for conversion costs is 1,600 units.

<h3>What equivalent units are for conversion costs?</h3>

This can be found as:

= Number of units that are WIP x Percentage of completion

Solving gives:

= 3,200 x 50%

= 1,600 units

Find out more on equivalent units at brainly.com/question/16259709

#SPJ1

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2 years ago

Your boss has asked you to calculate the profitability ratios of Cold Goose Metal Works, Inc. and make comments on its second-ye

Alinara [238K]

Answer:

Gross Margin % 59.2% 53.8%

compares gross profit to sales revenue

Ne income Margin 32.0% 28.9%

compares net income to sales revenue

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,

Explanation:

Net Sales 3,810,000 3,000,000

Operating costs less depreciation/amortization 1,365,000 1,267,500

Depreciation and amortization 190,500 120,000

Total Operating Costs 1,555,500 1,387,500

Operating Income (or EBIT) 2,254,500 1,612,500

Less: Interest 225,450 169,313

Earnings before taxes (EBT) 2,029,050 1,443,187

Less: Taxes (40%) 821,620 577,275

Net Income 1,217,430 865,912

assets 11,277,600 7,050,000

Equity 3,750,000 3,750,000

Gross Margin % 59.2% 53.8%

compares gross profit to sales revenue

Ne income Margin 32.0% 28.9%

compares net income to sales revenue

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,

8 0

3 years ago

Stubs-R-Us is a local event ticket broker. Last year, the company sold 750,000 tickets with an average commission of $10. Becaus

jok3333 [9.3K]

Answer:

$6,237,600

Explanation:

The computation of Estimate commission revenues is shown below:-

In the Coming year the market volume = 100% - 20%

= 80%

In the Coming year the number of sales = 100% - 8%

= 92%

In the coming year the Average commission per trade = 100% + 13%

= 113%

Commission revenue = Sold tickets × Average commission × In the Coming year the market volume × In the Coming year the number of sales × In the coming year the Average commission per trade

= 750,000 × $10 × 0.80 × 0.92 × 1.13

= $6,237,600

We applied the same formula to find out the commission revenue earned by the company

7 0

3 years ago

Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016. (H

Allisa [31]

Answer:

Sherman Equipment Co.

a) Sherman Equipment Co.

Multistep Income Statement

For the year ended December 31, 2016

Sales Revenue $320,000

Cost of Goods Sold 148,000

Gross profit $172,000

Operating expenses:

Salaries Expense $ 69,000

Operating Expenses 62,000

Uncollectible Accounts Expense 8,100

Total operating expenses $139,100

Operating income $32,900

Interest Revenue 5,400

Net income $38,300

Balance Sheet

As of December 31, 2016

Assets

Current Assets:

Cash $48,100

Interest Receivable (short term) 1,500

Accounts Receivable 56,000

Allowance for Doubtful Accounts (7,800) 48,200

Notes Receivable (short term) 24,000

Supplies 1,200

Inventory 98,300

Prepaid Rent 12,500

Total current assets $233,800

Long-term assets:

Land 40,000

Total assets $273,800

Liabilities and Equity:

Current liabilities:

Accounts Payable $46,000

Salaries Payable 12,000

Total current liabilities $58,000

Equity:

Common Stock $100,000

Ending Retained Earnings 115,800

Total equity $215,800

Total liabilities and equity $273,800

Explanation:

a) Data and Calculations:

Cash 48,100

Interest Receivable (short term) 1,500

Accounts Receivable 56,000

Notes Receivable (short term) 24,000

Supplies 1,200

Inventory 98,300

Prepaid Rent 12,500

Land 40,000

Allowance for Doubtful Accounts 7,800

Accounts Payable 46,000

Salaries Payable 12,000

Common Stock 100,000

Beginning Retained Earnings 81,000

Dividends 3,500

Interest Revenue 5,400

Sales Revenue 320,000

Cost of Goods Sold 148,000

Salaries Expense $ 69,000

Operating Expenses $ 62,000

Uncollectible Accounts Expense 8,100

Cash Flow from Investing Activities 78,400

Beginning Retained Earnings 81,000

Net income 38,300

Dividends (3,500)

Ending Retained Earnings 115,800

7 0

3 years ago

Define entrepreneurial education??????

Firdavs [7]

Answer:

hope it helps if it does follow me

Explanation:

Entrepreneurship education seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety of settings. Variations of entrepreneurship education are offered at all levels of schooling from primary or secondary schools through graduate university programs.

5 0

3 years ago