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3 years ago

Your company buys a car and its value goes down over time. what is that process called

1 answer:

8 0

This process is called depreciation. It is defined as the reduction of the value of an asset with time due to factors like wear and tear. The car, in this case, is very susceptible to wear and tear therefore it will really depreciate no matter what. Depreciation is one cost that should be included in any accounting of assets.

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A pharmaceutical company was the first company to introduce a revolutionary treatment for rheumatoid arthritis. Sales and demand

madreJ [45]

Answer:

Use the production line of the other organization or form an alliance with another pharmaceutical company

Explanation:

The only way the organization make money is to use the production facility of the production lines of the other pharmaceutical organization to meet the demand of the customers until the company is able to have its own production lines in place. So the best strategy to maximize the profits is collaborate with another organization to maximize its profits.

8 0

3 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?

mafiozo [28]

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

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3 years ago

Regarding the present value of an annuity, the present value of an annuity due will always be worth less compared to the present

KATRIN_1 [288]

Answer: false

Explanation:

Annuity due is an annuity whereby the payment is normally due at the beginning of every period which can be annually, semi annually, monthly, or quarterly. Examples of payments with annuity due include rents and, leases.

In ordinary annuity, the main difference is that the payments have to be made at the end of every period.

It should be noted that the present value of an annuity due is typically worth more when it is compared to the present value of ordinary annuity.

5 0

3 years ago

(b) The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. Opposite

densk [106]

Answer:

Please see explanation below

Explanation:

1. Paid $5,000 of accrued taxes at time plant site was acquired. - Debit accrued taxes account $5000, credit cash expenses account $5000.

2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. - Debit freight and insurance in transit $200, credit cash expenses $200.

3. Paid $850 sales taxes on new delivery truck. - Debit sales tax $850, credit expenses $850.

4. Paid $17,500 for parking lots and driveways on new plant site. - Debit land improvements $17,500, credit cash expenses $17,500.

5. Paid $250 to have company name and advertising slogan painted on new delivery truck. - Debit advertisement $250, credit cash expenses $250.

6. Paid $8,000 for installation of new factory machinery. - debit installation costs (under plants and machinery $8000.

7. Paid $900 for one-year accident insurance policy on new delivery truck. - Debit insurance $900, credit cash expenses $900.

8. Paid $75 motor vehicle license fee on the new truck. - Debit licensing fees $75, credit cash expenses $75.

6 0

3 years ago

Read 2 more answers

The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 10

stiks02 [169]

Answer:

a. Compute the current price of the stock.

P/E ratio = 10

EPS = $5,000,000 / 2,000,000 stocks = $2.50 per stock

price = $2.50 x 10 = $25

b. If the $5 million is used to pay dividends, how much will dividends per share be?

$2.50, same as EPS

c. If the $5 million is used to repurchase shares in the market at a price of $30 per share, how many shares will be acquired?

$5,000,000 / $30 = 166,666.7 ≈ 166,667 stocks

d. What will the new earnings per share be?

outstanding stocks = 2,000,000 - 166,667 = 1,833,333

EPS = $5,000,000 / 1,833,333 = $2.73

e-1. If the P/E ratio remains constant, what will the price of the securities be?

price = $2.73 x 10 = $27.30

e-2. By how much, in terms of dollars, did the repurchase increase the stock price?

$27.30 - $25 = $2.30

f. Has the stockholders' total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend?

4 0

3 years ago