Advantages of road transport over rail transport

What kinds of transactions can be entered in a general journal?

snow_lady [41]

Answer:

Asset sales. Depreciation.interest income and interest expense

Explanation:

These Journals are:

Sales journal

Cash receipts journal

Purchases journal

Cash disbursements journal

8 0

4 years ago

A few years ago, in order to gain market share, Blackboard™, a well-known management system software company used by many colleg

ASHA 777 [7]

Answer: <em>A horizontal merger</em>

Explanation:

A horizontal merger is known as or referred to as a business consolidation or merger that tends to occur between a firm which operate in the vicinity or same industry. The competition is higher among the organizations and companies that are operating or working in same space, that is mostly concerned with potential gains and synergies in the market share are way greater for the firms merging.

8 0

3 years ago

U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless ste

kirza4 [7]

Answer:

$5.5228 million

Or

$5,522,800

Explanation:

First, calculate the present value of all cash outflows

Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )

Where

Initial cost = $13 million

Year 1 cost = $10 million

Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696

Annual Cost = $1.2 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )

Present value of cash outflow = $13 million + $8.696 million + $6.0228 million

Present value of cash outflow = $27.7188 million

Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year

Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years

Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years

Where

Present value of Annual revenue = $27.7188 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Annual Revenue = $27.7188 million / 5.019

Annual Revenue = $5.5228 million

Annual Revenue = $5,522,800

8 0

3 years ago

Firms with volatile operating income tend to have lower debt ratios because Blank______. Multiple choice question. there is a lo

lubasha [3.4K]

<h3>Option 2 is correct - There is a higher probability of experiencing Financial distress.</h3>

Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns.

Following reasons can lead to financial distress in a firm.

Cash flows - The first sign that things are going wrong is a constant shortage of cash. The old adage that cash is king exists for a reason
Falling margins and poor profits - Experienced entrepreneurs have learnt that for long-term survival what matters are profits, not only sales. Poor profits are usually the first indicators that a business is not doing well.
Poor sales growth or decline in revenues - When there is no sales growth despite extreme marketing activities, this could indicate a lack of customer acceptance, which is key to any business success.
Extended payment days - Another sign of possible trouble is a rise in either creditor or debtor payment days. If business has to delay payments to its creditors, this can force some suppliers to stop supplying

Difficulty in raising capital - If a company is constantly borrowing and asking its investors to inject more capital, this is an underlying sign that it is increasingly finding it difficult to self-sustain.

Hence, Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

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7 0

2 years ago

g Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klei

Softa [21]

Answer:

Note: The complete question is attached as picture below

Date Account Titles and Explanation Debit Credit