Answer:
Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.
Explanation:
As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.
Answer:
10781
Explanation:
In order to find the additional annual revenue for the two method a break even point must be calculated
Method A
=-8000(1.1)^6+20000(1.1)^6-22000-(u)
=-15776.44-22000 -u
=-37776.44-u
Method B
= -52000(1.1)^6+15000(1.1)^6-17000-2u
=9995.4-17000-2u
=-26995.47-2u
Then equate the two equations
-37776.44-u=-26995.47-2u
u=10781
Answer:
This would affect the income statement by having expenses
c. understated and therefore net income overstated revenues
Explanation:
Adjusting Entry:
It is such entry which is added at the end of the fiscal period in order to make the income statement accurate.
Overstated:
In Accounting, overstated amount means that amount is greater than the true amount.
Understated:
In Accounting, if an amount is less than the true amount then it is known as understated.
- As in our case, the adjusting entry for supplies was not added so in this way expenses became understated means they become less as compared to actual expenses. Therefore, revenues overstated.
Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
Lena makes $45 profit.
Extra information:
The amount of profit Lena makes is 3/4th of the profit Joe makes, seeing as when Joe makes $4 profit, Lena makes $3 and $3 is 3/4th of $4. Therefore, when Joe makes a profit of $60, Lena makes a profit of (60 x 3/4) $45.
