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agasfer [191]
3 years ago
13

Advertisement: Our competitors' computer salespeople are paid according to the value of the products they sell, so they have a f

inancial incentive to convince you to buy the most expensive units—whether you need them or not. But here at Comput-o-Mart, our salespeople are paid a salary that is not dependent on the value of their sales, so they won't try to tell you what to buy. That means when you buy a computer at Comput-o-Mart, you can be sure you're not paying for computing capabilities you don't need.
Which of the following would, if true, most weaken the advertisement's reasoning?
A. Some less-expensive computers actually have greater computing power than more expensive ones.
B. Salespeople who have a financial incentive to make sales generally provide more attentive service than do other salespeople.
C. Extended warranties purchased for less-expensive computers can cost nearly as much as the purchase price of the computer.
D. Comput-o-Mart is open only limited hours, which makes it more difficult for many shoppers to buy computers there than at other retail stores.
E. Comput-o-Mart does not sell any computers that support only basic computing.
Business
1 answer:
SVEN [57.7K]3 years ago
7 0

Answer:

E) Comput-o-Mart does not sell any computers that support only basic computing.

Explanation:

Comput-o-Mart advertisement implies that if you buy a computer somewhere else, the salespeople will try to sell you expensive computers that are usually able to support complex computing activities, even though they could sell cheaper computers that are not that "powerful". But if Comput-o-Mart only sells powerful and expensive computers, then it should be no different than the other stores. At least somewhere else you can insist on buying a cheaper computer.

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On March 1, Atlantic Co. issues 47,500 shares of $4 par value common stock for $312,500 cash. On April 1, OP Co. issues no-par v
dem82 [27]

Common stock is a security that represents ownership in a corporation.

<h3>The Journal entries are as follows:</h3>

(i) On March 1,

Cash A/c       Dr. $297,500

To common stock (42,500 × $4)       $170,000          

To paid in capital in excess of par value $127,500

(To record the issuance of common stock)

(ii) On April 1,

Cash A/c       Dr. $70,000

To common stock         $70,000

(To issue no-par value common stock)

(iii) On April 6,

Inventory A/c  Dr. $45,000

Machinery A/c  Dr. $145,000

To common stock (2,000 × $25)       $50,000          

To paid in capital in excess of par value $46,000

To Note payable                     $94,000

To learn more about Common stock visit the link

brainly.com/question/13762106

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7 0
2 years ago
Milbank Repairs &amp; Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its fi
DIA [1.3K]

Answer:

a. Journalize the adjusting entries necessary on June 30, 2019.

Fees earned but unbilled on June 30 were $9,070.

Dr Accounts receivable 9,070

    Cr Fees earned 9,070

Supplies on hand on June 30 were $7,410.

Dr Supplies expense 12,630

    Cr Supplies 12,630

The depreciation of equipment was estimated to be $12,530 for the year.

Dr Depreciation expense - equipment 12,530

    Cr Accumulated depreciation - equipment 12,530

The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $17,420 of the services was provided.

Dr Unearned fees 17,420

    Cr Fees earned 17,420

Unpaid wages accrued on June 30 were $1,600.

Dr Wages expense 1,600

    Cr Wages payable 1,600

b. Determine the revenues, expenses, and net income of Milbank Repairs& Service before the adjusting entries.

Fees Earned $501,120

- Wages Expense $116,260

- Rent Expense $88,700

- Utilities Expense $63,640

<u>- Miscellaneous Expense $10,020</u>

Net income $222,500

c. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.

Fees Earned $527,610  

- Wages Expense $117,860

- Rent Expense $88,700

- Utilities Expense $63,640

- Depreciation expense $12,530

<u>- Miscellaneous Expense (including supplies) $22,650</u>

Net income $222,230

d. Determine the effect of the adjusting entries on Nancy Townes, Capital.

Nancy Townes is the owner of Milbank Repairs & Service, and since this is a sole proprietorship (she is the sole owner), the retained earnings account does not exist. So any profits or losses will increase or decrease her capital account respectively. Since after the adjustments the net income decreased by $270, her capital account will also decrease by $270.

5 0
3 years ago
Suppose Carla has $7000 to invest. Which investment yields the greater return over 4 years: 7% compounded quarterly or 6.85% com
o-na [289]

Answer:

The option with the quarterly compounding provides a higher future value.

Explanation:

Giving the following information:

Initial investment= $7,000

Number of years= 4 years

<u>To calculate the future value, we need to use the following formula:</u>

FV= PV*(1+i)^n

<u>Quarterly compounding:</u>

Interest rate (i)= 0.07/4= 0.0175

n= 4*4= 16

FV= 7,000*(1.0175^16)

FV= $9,239.51

<u>Monthly compounding:</u>

i= 0.0685/12= 0.00571

n= 4*12= 48

FV= 7,000*(1.00571^48)

FV= $9,200.07

The option with the quarterly compounding provides a higher future value.

6 0
3 years ago
Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 55.25 55.50 a. Suppose
kobusy [5.1K]

Answer:

$55.50

Explanation:

The bid price is $55,25 is the price applicable to investors would intend to sell their investment.

The ask price is $55.50 is the price applicable to investors who wish to acquire the Fincorp stock.

The prices have been computed in such a  way that the broker will always gain, whether an investor is buying or selling his/her stake.

Conclusively, the order given to the broker to buy at market would be executed at the ask price of $55.50, not the other way round.

8 0
3 years ago
The green giant has a 8 percent profit margin and a 67 percent dividend payout ratio. the total asset turnover is 1.3 times and
Goryan [66]
Profit margin of green giant = 8% = 0.08
 Dividend payout ratio = 67% = 0.67
 Total turnover = 1.3 times
 Equality multiplier = 1.6 times
 First calculate the return of equity = profit margin x turnover x equality
multiplier
 Return of Equity = 0.08 x 1.3 x 1.6 = 0.1664
 Now the sustainable rate of growth = Return of Equity x (1 - Dividend payout ratio)
 Sustainable rate = 0.1664 x (1 - 0.67) = 0.1664 x 0.33 = 0.055
 Sustainable rate of growth = 5.5%
8 0
4 years ago
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