When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
<h3>
What is Net operating income?</h3>
- Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..
- Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.
- By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.
- After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.
- Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.
Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
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Answer:
The journal entry to record the issuance of new stocks is:
Dr Cash 164,800
Cr Common stock 72,100
Cr Additional paid in capital in excess of par value 92,700
When you issue new stocks, the common stock account increases by par value (= 10,300 stocks x $7). Any money obtained over par value must be recorded under the additional paid in capital account (= 10,300 x $9).
<u>An in-text citation(a) A brief quotation from an outside author's work that leads the readers to works by the same author.</u>
Explanation:
An in-text citation is a reference which is made within the body of text of an academic writing .
It is the in-text citation that alerts the reader about a source that has informed your own writing. The exact format of an in-text citation will depend on the style you need to use, for example, APA,MPA style
An in-text citation is used to, summarize, paraphrase, or quote from another reference source.
For Example :-In APA style in-text citation uses the author's last name and the year of publication, like (tsield, 2008). For direct quotations, include the page number as well (tsield, 2008, p. 18).
<u>An in-text citation(a) A brief quotation from an outside author's work that leads the readers to works by the same author.</u>
<span>Having fewer customers in a business market can be a positive, since it allows for the business to get to know those customers they do serve more closely and allows them to better cater to their needs. However, it can also be a negative because it makes every transaction with a customer vital to the overall bottom line and the vitality of the business.</span>
