Answer and Explanation:
The preparation of the income statement is presented below:
<u>Particulars Amount </u>
Revenue $160,000
Less:
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax at 35% -$24,500
Net Income $45,500
Hence, the net income is $45,500
Answer:
Sales Growth pricing objective
Explanation:
Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.
This is an example of which pricing objective of Sales Growth:
Sales Growth’s objective is to increase sales volume. <u>It sets its price in such a way that more and more sales can be achieved.</u> It is assumed that sales growth has direct positive impact on the profits. <u>So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.</u>
Answer:
A. $230,400
Explanation:
600,000 x 40% = 240,000
260,000 - 156,000 = 104,000 transfers of goods intra-entity at sale price
we divide by the markup to know the cost:
104,000 / 1.3 = 80,000 cost of the goods
gross margin 104,000 - 80,000 = 24,000
we will eliminate 40% of the gross margin
24,000 x 40% = 9,600
This amount will be eliminate from the incoem statemnet:
240,000 - 9,600 = 230,400
Answer:
The DAP Company
Current price per share:
Current price = Current Dividend (D0) / (WACC - Growth Rate)
= $2/ (0.10 - 0.06) = $50
Explanation:
The technique used to value the share price is called the Dividend Discount Model (DDM). The Myron Gordon model of this DDM is popularly used.
This model states that the current price of a share is the Current Dividend (D0) divided the difference between the cost of capital and the growth rate.
The result is the intrinsic value of the stock. The model assumes that dividends are paid in perpetuity and that the growth rate is constant over many years.
These remain assumptions as the real life offers quite different scenarios. There is no company that pays dividend every year in perpetuity. A company's growth rate is never constant year on year.
Answer:
6%
Explanation:
According to my research on U.S Census in the 1790's, I can say that based on the information provided within the question the National Archive estimates approximately 6% were eligible for participation in the political system. Since the National Archive and Records Administration is the organization in the U.S responsible for preserving and documenting all government and historical records, then we can say that this information is valid.
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