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3 years ago

Most of the assets were bought a long

Business

1 answer:

Margarita [4]3 years ago

4 0

Answer:

Historical cost principle

Explanation:

Assets must be recorded at cost value, not market value. When you record an asset, you cannot change its value every period, you have to keep using the historical value. This is why we use a separate account to record accumulated depreciation of assets, so that the purchase cost is always constant, but the net carrying value will vary depending on depreciation expense.

Market value changes and can be very volatile. Imagine a house, whose initial value was $300,000, then it increased to $500,000 but the market went down and its value was $350,000. It would be a mess to change the value and pay capital gains taxes, or then report a loss.

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Company Expenses Total Assets Net Income Total Liabilities Dreamworks $ 22,000 $ 40,000 $ 19,000 $ 30,000 Pixar 67,000 150,000 2

Luda [366]

Answer:

Expenses Total Assets Net Income Total Liabilities

Dreamworks $22,000 $40,000 $19,000 $30,000

Pixar $67,000 $150,000 $27,000 $147,000

Universal $12,000 $68,000 $5,000 $17,000

Debt ratio: Total Debt / Total Assets

Dreamworks = $30,000 / $40,000 = 0.75

Pixar = $147,000 / $150,000 = 0.98

Universal = $17,000 / $68,000 = 0.25

Financial Leverage: Asset / Equity

Dreamworks = $40,000 / (40,000-30,0000) = 4

Pixar = $150,000 / (150,000-147,000) = 50

Universal = $68,000 / (68,000-17000) = 1.33

Pixar Has the most financial leverage.

7 0

3 years ago

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

nirvana33 [79]

Solution and Explanation:

calculating the increase in the net operating income is as follows:

S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

3 0

3 years ago

Elizabeth Kennedy sells beauty supplies. Her annual demand for a particular skin sparkle is 17,000 units. The cost of placing an

elena-s [515]

Answer:

The minimum cost will be "$214085".

Explanation:

$D = 1700 units \\\\S = \$ 50 \\\\H= 20%\\$

i) When quantity = 1-1500, price = $ 12.50 , and holding price is $12.50 * 20 %= $2.50.

ii) When quantity = 1501 -10,000, price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.

iii) When quantity = 10,0001- and more, price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.

$EOQ= \sqrt{\frac{2DS}{H}} \\\\EOQ1= \sqrt{\frac{2\times 17000\times 50}{2.50}} \\\\EOQ1=824.62 \ \ \ or \ \ \ 825\\$

$EOQ2= \sqrt{\frac{2\times 17000\times 50}{2.49}} \\\\EOQ1=826.2T \ \ \ or \ \ \ 826\\$

$EOQ3= \sqrt{\frac{2\times 17000\times 50}{2.48}} \\\\EOQ3=827.93 \ \ \ or \ \ \ 828\\$

know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units

$total \ cost = odering \ cost + holding \ cost + \ Annual \ product \ cost\\\\total_c = \frac{D}{Q} \times S + \frac{Q}{2} \times H + (p \times D) \\\\T_c = \frac{17000}{825} \times 50+ \frac{825}{2} \times 2.50 + (12.50 \times 17000)\\\\T_c = 1030 .30 +1031.25+212500\\\\T_c =$ 214561.55\\\\$

$T_c = \frac{17000}{1501} \times 50+ \frac{1501}{2} \times 2.49 + (12.45 \times 17000)\\\\T_c = 566.28 +1868.74+211650\\\\T_c =$ 214085.02 \ \ \ or \ \ \ $ 214085\\\\$

$T_c = \frac{17000}{10001} \times 50+ \frac{10001}{2} \times 2.48 + (12.40 \times 17000)\\\\T_c = 84.99+ 12401.24+210800\\\\T_c =$ 223286.23 \\$

The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.

5 0

3 years ago

list 4 stages of development impacting the airline industry and briefly describe how each has impacted the future direction of t

PolarNik [594]

The 4 stages of development that impacted the Airline Industry are:-

1. Regulation: Strict government control of fares, routes, and entry into markets Regulation resulted from tight ownership control of fares, limited competition on chosen routes, a small market served, a low frequency of city connections, high fares, government bailouts for air carriers, and incentives to increase airline profitability

2. Liberalization: reducing governmental control, increasing bilateral agreements, expanding into new markets, diversifying into new goods, and specialising in specialised markets.

3. Deregulation results in less airfare, improved service, and no government regulation of the market.

4. Re-regulation: Prevent predatory pricing by regulating prices; prohibiting strikes under the Railway Labor Act; updating the air traffic control system to reduce delays; and encouraging development, consolidation, and concentration.

To Learn more about Airline Industry, Click the links.

brainly.com/question/14923148

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6 0

2 years ago

Definition of a stakeholder

MatroZZZ [7]

1.
(in gambling) an independent party with whom each of those who make a wager deposits the money or counters wagered.
2.
a person with an interest or concern in something, especially a business.

6 0

3 years ago