1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wel
3 years ago
12

Tetradic Solutions has been making purchases from Ribbon, Inc., for the last three years. Every three months, it makes the same

order of 5,000 ml of Ribbon, Inc.'s, secret compound used in Tetradic's lotion line. Recently, Tetradic has seen a downturn in demand and needs to alter its usual order from 5,000 to 3,500 and hopefully reduce the price per ml. What BEST describes Tetradic's situation
Business
1 answer:
nalin [4]3 years ago
3 0

Answer: modified rebuy

Explanation:

Tetradic's situation can be defined as the modified rebuy. Modified Rebuy refers to a purchasing situation whereby an individual or organization buys goods that they've bought before but then changes the supplier or some elements in the previous order.

Based on the question given, Tetradic Solutions alters his purchase as the order was modified. In modified rebuy, the specifications of the product, prices, and suppliers can be changed as well.

You might be interested in
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000
Vitek1552 [10]

Answer:

<em>Preparation of Journal Entries</em>

<u>Date                      Particulars                                  Dr($)                Cr($</u>)

January 3, 20x2      Cash & Receivables              57,000

                                 Inventory                                165,000

                                Buildings & Equipment           307,000

                                Patent                                       203,000

                                Account Payable                                               20,000                                                

                                Purchase Consideration                                    632,000                                                                  

                               Gain on Purchase Bargain                                  80,000                                

                              <em> (Being purchase of Lark</em>

<em>                                Corporation`s net assets)                                                                      </em>

<em />

<em>Recording of merger costs.</em>

(Debit)  Cash                                                             $9,000

(Credit)  Merger Expenses                                       $9,000

Recording of acquisition of Lark Corporation`s net assets

(Debit)  Investment in Lark`s net asset                    $712,000

(Credit)   Cash                                                            $632,000

(Credit)  Gain on Purchase Bargain                          $80,000

<em />

Explanation:

When acquiring another business, net asset (Total Assets - Total Liabilities) is valued at fair value (sometimes called market value, not book value.  Hence, the reason why the fair value of Lark`s assets and liabilities was used in the calculation above. So the net assets  ($57,000+$165,000+$307,000+$203,000 - $20,000) = $712,000.

After, calculating the net assets of the Lark, the purchase consideration given by Bower Company has to be removed from the net asset, in order to get the goodwill or gain on purchase bargain on the acquisition. The formula is Purchase consideration - Net assets of the target company = Goodwill (Gain on purchase bargain). If the purchase consideration is higher than the net assets, then goodwill is obtained. If the purchase consideration is lower than net assets acquired then, gain on purchase bargain is obtained.

In Bower`s case, gain on purchase bargain is obtained because net assets is  greater than purchase consideration ($632,000 - $712,000).

<em>Merger cost</em>

Merger cost is not considered as part of purchase consideration. The merger cost is taken to income statement of Bower Corporation as expense.

3 0
2 years ago
The following table contains statements that provide some analysis of policies that address smoking, lung cancer, and cigarette
liubo4ka [24]

Answer:

Positive Statements: 1st & 2nd ; Normative Statements: 3rd & 4th

Explanation:

Positive Economics is <u>objective</u> & <u>facts</u> based <u>actual</u> economic issue description , explaining verifiable phenomenas (causal relationships).

Normative Economics is <u>subjective</u> & opinion based conclusive <u>solutions</u> to economic issues, including '<u>ought to be</u>' unverifiable suggestions.

1. Lung cancer kills millions of people each year: reflects actual objective verifiable fact about an economic (health) issue.

2. Too many people smoke: denotes another actual objective variable fact connected to (potential cause of) the above economic (health) issue.

So , these two are Positive Statements.

3. If the government were to increase taxes on cigarettes, fewer people would smoke : Is subjective opinion based probable solution to the above economic (health) issue.

4. The government should increase taxes on cigarettes : Is an 'ought to' suggestion for an economic participant (govt) to solve the above economic (health) issue.

So , these two are Normative Statements

5 0
3 years ago
An increase in the demand for peanut butter could be caused by a(n)
Serggg [28]
I’d say D because its being demanded more of
8 0
2 years ago
Under U.S. GAAP, cash flows from investing activities do not include:a. cash payments to acquire equipment.b. cash received from
Semenov [28]

Answer:

The correct answer is letter "C": investment revenue in cash.

Explanation:

Cash flows from investing activities are portrayed in the Cash Flow Statement indicating the amount o cash that was generated or spent from investment-related activities of the company. Usually, <em>cash payments to acquire physical assets, receipts from the sale of intangible assets, cash payments or receipts for the sale of bonds or shares of other companies, </em>and <em>cash payments in the form of loans</em> are considered in the cash flows from investing activities.

<em>According to the U.S. Generally Accepted Accounting Principles (GAAP), investment revenue in cash is reported as an inflow from operating activities.</em>

6 0
3 years ago
The person who receives financial protection from a life insurance plan is called a
s2008m [1.1K]
The person who receives financial protection from a life insurance plan is called a beneficiary. I hope that I helped, Have a wonderful day!

6 0
3 years ago
Other questions:
  • Outline the benefit of running a business
    12·2 answers
  • Fees in 1st year Suppose Adrian and Clemens each Invest $10,000. Adrian Invests in an actively managed mutual fund that has an a
    15·1 answer
  • A policymaker wants to reduce inflation. In order to make an intelligent decision about how to do so, the policymaker: should us
    7·1 answer
  • Why did the housing market crash in 2008
    5·2 answers
  • What is the purpose of the customs department of a country’s government?
    7·1 answer
  • Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $ 115 com
    13·1 answer
  • Ken just purchased new furniture for his house at a cost of $16,700. The loan calls for weekly payments for the next 6 years at
    11·1 answer
  • $444,567 Revenue, $400,500 Expenses. Net Profit?
    15·1 answer
  • In actual practice, managers most frequently use which two types of investment criteria?.
    7·1 answer
  • Martin, a u.s. citizen, travels to mexico and buys a newly manufactured motorcycle made there. his purchase is included in?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!