Answer: Purchases assets at a cost of $15,000 (000)
Explanation:
Out of the 4 options presented, 2 involves cash coming into the company which are; Sells $5,000 (000) of their Long-term assets and Liquidates the entire inventory. As these 2 bring cash into the company, they will not make Baldwin need an emergency loan.
The other 2 however, take money from the company being; Retires $20,000 (000) in long-term debt and Purchases assets at a cost of $15,000 (000). Retirement of long-term debt will have been in the budget for a long time so there would be no need for <em>emergency</em> funding.
The Purchase of the assets on the other hand has a less chance of being budgeted for than the long term debt retirement and being such a significant outflow, could expose Baldwin to the risk of needing to seek emergency loans.
Question Completion:
see Exhibit 4 attached.
Answer:
1. The largest and smallest divisions by net sales in 2017:
Largest divisions:
Fabric & Home care with 32%
Baby, Feminine & Family Care, 28%
Smallest divisions:
Beauty with 18%
Grooming, 11%
Healthcare, 11%
2. The one most important division in terms of the proportionate net earnings for the company is:
Fabric & Home Care
Explanation:
The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%. In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%. The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division. Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.
Answer: Purpose is something that influences goal. And objective is the specific action which one try to achieve as a short term plan.
Explanation:
