Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
$2 million
Explanation:
The first $1 million will increase awareness to 72% x (1 + 22%) = 87.84%
But 1/3 is lost every year, so awareness will be 87.84% - 72%/3 = 63.84%.
It needs to spend at least $2 million:
Awareness increases to [72% x (1 + 22%) x (1 + 23%)] - 72%/3 = 84.04%
the awareness level will be higher than the 77% threshold.
Answer:
Explanation:
The preparation of the year-end 2017 income statement for Armani Company is shown below:
Armani Company
Income statement
Revenue
Consulting revenue $33,000
Rental revenue $22,000
Total revenues $55,000 (A)
LESS: Expenses
Salaries expense $20,000
Rent expense $12,000
Selling and administrative expenses $8,000
Total expenses $40,000 (B)
Net income $15,000 (A- B)
Answer:
B) $84,000
Explanation:
Since accounts receivable increased by $10,000, it means that the cash basis pretax income is $10,000 lower than the accrual basis pretax income. The company sold the goods or services but it hasn't received the cash them yet.
Since accounts payable decreased by $6,000, it means that the cash basis pretax income is $6,000 lower than the accrual basis pretax income. The company acquired debt in year 1 but it paid it during year 2, therefore it used cash during year 2 to pay for debt that corresponded to year 1.
If we add both negative adjustments; (-$10,000) + (-$6,000) = -$16,000
$100,000 - $16,000 = $84,000