Answer:
B. A violation of establishment of responsibility
Explanation:
They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility
Answer:
(A) Cost of equity= 15.74%
(B) WACC = 12.86%
Explanation:
Palencia paint corporation has a 35% debt from it's target capital structure and 65% common equity
The before-tax cost debt is 10%
Marginal tax rate is 25%
Po is $22.00
Do is $2.25
Constant rate(g) is 5%
(A) The cost of common equity can be calculated as follows
= [Do(1+g)/Po] + g
=[2.25(1+0.05)/22] + 5%
= [2.25(1.05)/22] + 5%
= 2.3625/22 + 5%
= 0.1074+5%
= 0.1074×100+5%
= 10.74%+5%
Cost of equity = 15.74%
(B) The WACC can be calculated as follows
= weight of debt×after-tax cost of debt + weight of equity×cost of equity
= (35%)(10%)(1-25%) + (65%)(15.74%)
= (35%)(10%)(1-0.25) + (65%)(15.74%)
=(35%)(10%)(0.75) + (65%)(15.74%)
= 2.63% + 10.23%
= 12.86%
Hence the cost of equity is 15.74% and the WACC is 12.86%
Answer and Explanation:
A. Current ratio= current assets/current liabilities
= 33900+158200+135600/113000 = 2.9
B. Account Receivable Turnover = Sales/ Average account receivables
= 379100 -28000/158200+135600/2) = 2.39
c) Average collection period =
365/ account receivable turnover
= 365/2.39 =
152.72 days
D. inventory turnover = cost of goods sold / average inventory
= 203800/135600+113000/2 = 1.64
E. Days in inventory = 365/inventory turnover=
365/1.64 = 222.561 Days
F. Cash debt coverage
= cash from operating activities - dividend / total debt
= (58000 - 19600 )/(226000) = 0.17
G. Current cash debt coverage = net cash provided by the operating activities / average current liabilities
=58000 /113000 + 135600/2) = 0.467
H. Cash flow available = cash flow from operating activities - Capital Expenditure- Cash Dividend
$(58000-27500-19600)
= $10900
Answer:
D. communication gap
Explanation:
A communication gap is when the meaning the speaker tries to send is not understood by the recipient. In the question given the customer was overpromised 98% but in reality, he received 95% of the items generating a communication gap and with this de discomfort of the consumer
I hope you find this information useful and interesting! Good luck!
1) ERROR OF PRINCIPLE
2) Rs. 500,000/-.
3) 14,40,000
4) Profit=2,00,000
Explanation:
1)
Error Committed by Mr. Imran is "ERROR OF PRINCIPLE" . Error of Principle Means a transaction which is not in accordance with Generally accepted accounting principle( GAAP). In this case Mr. Imran has wrongly debited to revenue expenditure instead of debiting to Plant and machinery.
2)
The assets side of Balance sheet is understated by Rs. 500,000/-.
3)
Fixed Assets correct amount= Fixed assets before correcting the errors + installation charges
=9,40,000+5,00,000
=14,40,000
4)
Correct Profit= Profit/(loss) Before correcting the error+Installation Charges
Profit= (3,00,000)+5,00,000
Profit=2,00,000
