Which of the following is true about effective budgets?

During 2017 the DLD Company had a net income of $85,000. In addition, selectedaccounts showed the following changes: Accounts Re

miv72 [106K]

Answer:

A) $84,500

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Hence, amount of cash provided by operating activities

= -$3,000 + $1,000 + $1,500 + $85,000

= $84,500

The increase in asset other than cash is an outflow, increase in liability is an inflow of cash. Depreciation is a non-cash item added back while increase in building and bond payable are investing and financing activities respectively.

7 0

3 years ago

The last step in the marketing process often includes: collecting the cash from sales to consumers. developing a written report

pochemuha

Answer: developing a written report to summarize the results of the period's marketing activities.

Explanation:

The last step in the marketing process often is developing a written report to summarize the results of the period's marketing activities.

Developing a written report to summarise the results of the marketing activities is necessary in order to evaluate the performance of the marketing activity and also learn from past mistakes which have previously affected the company.

These are vital in order to capture a good market share in the future and also achieve organizational goals.

6 0

3 years ago

Employers across diverse industries have common expectations for their employees.<br> True<br> False

aniked [119]

False

Explanation:

cause they're different parts of careers therefore theyd have to have different expectations for each, cause theyre not the same

5 0

2 years ago

A company reported net income of $6 million. During the year the average number of common shares outstanding was 3 million. The

malfutka [58]

Answer:

The EPS is approximately:

it can be any of them:

if preferred dividends = $4,800,000, then EPS = $0.40 (option A)
if preferred dividends = $720,000, then EPS = $1.76 (option B)
if preferred dividends = $0, then EPS = $2 (option D)

EPS = (net income - preferred dividends) / outstanding shares = ($6,000,000 - preferred dividends) / 3,000,000 shares

The Price/Earnings ratio is approximately:

if EPS = $0.40, then PE ratio = 12.5 (option D)
if EPS = $1.76, then PE ratio = 2.84 (option C)
if EPS = $2, then PE ratio = 2.5 (option B)

Price/earnings (PE) ratio = share price / EPS = $5 / EPS

EPS cannot be $1.80, since PE ratio = 2.78 and that is not an option.

Some companies have a higher share price for the same level of earnings. Why?

Some stocks like Amazon have a very low EPS, form any years its EPS was very low bu its stock price kept rising. The stock price is based mostly on potential future earnings, not current earnings. A company that is being liquidated might have a high EPS, but a very low stock price since it will stop operating soon.

7 0

3 years ago

In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the

AlladinOne [14]

Answer:

Lemons Company

a. Total amount of payroll checks = 920

amount of purchase requisitions = 12,500

b-a Residential Commercial Government Total

Payroll $32,832 $19,152 $10,944 $62,928

b-b Purchasing

Costs $17,688 $4,717 $7,075 $29,480

c. Residential's service department charge is __higher__ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a __higher__ number of payroll transactions.

Explanation:

a) Data and Calculations:

Cost of the Payroll Department = $62,928

Cost of the Purchasing Department = $29,480

Residential Commercial Government Total

Contract

Sales $2,000,000 $3,250,000 $2,900,000 $8,150,000

Weekly payroll

(52 weeks per year) 400 250 150 800

Monthly payroll 80 30 10 120

Total 480 280 160 920

Number of purchase

requisitions per year 7,500 3,000 2,000 12,500

a. Total amount of payroll checks = 920 (800 + 120)

Total amount of purchase requisitions = 12,500

b-a Residential Commercial Government Total

Payroll $32,832 $19,152 $10,944 $62,928

(480/920 * $62,928) (280/920 * $62,928) (160/920 * $62,928)

b-b Purchasing

Costs $17,688 $4,717 $7,075 $29,480

(7,500/12,500 * $29,480) (2,000/12,500 * $29,480) (3,000/12,500 * $29,480)

Total $50,520 $23,869 $18,019 $92,408

Percentage 54.7% 25.8% 19.5% 100%

4 0

3 years ago