D. Both A and B
If you have good credit you will be able to qualify for cards with low APRs and if you have bad credit you will be charged higher rates
Answer:
Journal Entries:
Dec 31 Bad Debts Expense $4875
Allowances for doubtful accounts $4875
Feb 1 Allowances for doubtful accounts $580
Accounts Receivable - P.Park $580
June 05 Accounts Receivable - P.Park $580
Allowances for doubtful accounts $580
June 05 Cash $580
Accounts Receivable - P.Park $580
Explanation:
On December 31 Chen estimates the potential receivable expected to be not paying to him. Therefore, he write off the receivable from balance sheet using the percentage of sales method of receivable of ($975000 x 0.5% = $4875). On Feb 1 Chen write off P.Park from receivable of $580 as he comes to know he will not pay but on June 5 P.Park pay him $580. First Chen reinstate the receivable afterwards he collect cash from receivable.
Answer:
Pelican's debt ratio 9%
Timberland's debt ratio 50%
The times interest earned ratio for Pelican 57.5
The times interest earned ratio for Timberland 10.45
C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.
D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%
The operating margin for Pelican is 14.76% while the operating margin for Timberland is 13.8%
Return on total assets for Pelican is 36.9% and that of its competitor is 34.5%
The return on equity for Pelican 40.6% and that of Timberland is 69.6%
C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets
B is correct, even though Pelican is more profitable (higher net profitmargin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.
Explanation:
All of the ratios requested for are found in the attached spreadsheet.
I believe that it is D, or the last choice.
Answer:
TRUE - Market Based Analysis
Explanation:
Market based analysis is a technique used by sellers to increase sales by better understanding the purchase patterns of customers. It is based on the idea that if a customer buys a certain group of goods, the customer is more or less likely to buy another group of goods. It involves data analysis of customer buying history, product grouping as well as products that are likely to be purchased. In this case the technique used by Haircare is based on market based analysis.
