Answer:
Purchases= 408,000 pounds
Explanation:
Giving the following information:
Production:
2nd Q= 99,000 units
3rd= 109,000 units
Four pounds of material A are required for each unit produced.
Desired ending inventory= 30% of the next quarter's production
<u>To calculate the purchases for the second quarter, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= (99,000*4) + (109,000*4)*0.3 - (99,000*4)*0.3
Purchases= 396,000 + 130,800 - 118,800
Purchases= 408,000 pounds
Answer:
d. The potential exists for agency conflicts between stockholders and managers.
Explanation:
- A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Answer:
d. 1.753 pesos/krone
Explanation:
The computation of the received pesos for exchange is shown below
Received pesos = Exchange value of one U.S dollar for Mexican pesos ÷ Exchange value of one U.S dollar for Mexican pesos
= 10.875 ÷ 6.205
= 1.753 pesos/krone
It shows a relationship between the Exchange value of one U.S dollar for Mexican pesos and the Exchange value of one U.S dollar for Mexican pesos so that per pesos/krone can come
Answer:
a. (1) make the plan, then (2) carry out the plan.
Explanation:
The cycle of the planning/ control comprises of following steps
1. Make the plan
2. After that carry out the plan
3. Now the control is there by comparing
4. And finally, the control could be taken by taking corrective actions
According to the given situation, the correct option is a
And, the rest of the options are wrong
