Which of the following is true about effective budgets?

The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In

Aneli [31]

Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

Projected Increase in Assets = $364,720 * 20%

Projected Increase in Assets = $72,944

Increase in Liabilities = Liabilities * Sales Growth Rate

Increase in Liabilities = $69,600 * 20%

Increase in Liabilities = $13,920

<em>To calculate the Increase in Retained Earning, the below calculations are needed:</em>

a. Profit Margin Rate = Net Income / Sales * 100

Profit Margin Rate = 75,000 / 751,000 * 100

Profit Margin Rate = 9.99%

b. Dividend Payout Ratio = Dividend / Net Income * 100

Dividend Payout Ratio = 30,000 / 75,000 * 100

Dividend Payout Ratio = 0.4

Dividend Payout Ratio = 40%

Retention Rate = 1 - Dividend Payout Ratio

Retention Rate = 1 - 0.40

Retention Rate = 0.60

Retention Rate = 60%

c. Expected Sales = $751,000 * 1.20 = $901,200

So, the Increase in Retained Earning = Expected Sales * Profit Margin * Retention Rate = $901,200 *9.99% * 60% = $54,017.93

Therefore, External Fund Needed = $72,944 - $13,920 - $54,017.93 = $5,006.07

3 0

2 years ago

Which work measurement technique breaks down tasks into a series of generic micromotions?

GuDViN [60]

The measurement technique breaks down tasks into a series of generic micromotions is predetermined data approach.

Given that the technique breaks down into a series of generic micromotions.

We are required to name the work measurement technique that breaks down tasks into a series of generic micromotions.

The name of the work measurement technique that breaks down tasks into a series of generic micromotions is predetermined data approach.

The predetermined data method basically eliminates the need for time studies altogether. The analyst has to divide each work element into a series of micromotions common to a variety of tasks.

Hence the measurement technique breaks down tasks into a series of generic micromotions is predetermined data approach.

Learn more about measurement technique at brainly.com/question/4905850

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5 0

1 year ago

Which of the following is an example of a hard skill?Working well as part of a team Knowing how to prepare financial statements

Aleksandr [31]

Answer:

B. Knowing how to prepare financial statements

Explanation:

Hard skills are teachable and measurable abilities in an office writing, reading, or the ability to use computer programs are hard skills

6 0

3 years ago

Which of the following is a retirement plan offered by banks and investment companies in which an individual can deposit money t

Makovka662 [10]

Roth IRA would be the answer.

6 0

3 years ago

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Describe the goal of a good financial manager according to you?

lesantik [10]

Answer:

Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. Financial managers typically: ... Help management make financial decisions.

6 0

3 years ago

Read 2 more answers