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Ksenya-84 [330]

3 years ago

12

A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory

of units is 15% higher than the beginning inventory of 1,000 units. total june sales are anticipated to be

1 answer:

ohaa [14]3 years ago

7 0

Purchases = Sales units + Closing inventory - Beginning Inventory
= 6,000 + (1,000 * 115%) - 1,000
= 6,150 units

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In the game of economics,

kirill [66]

Answer:

Services

Explanation:

In the game of economics, services are actions that other people value. Services are something which people get and it helps to improve the utility level of a customer. Services are valued by people because it satisfies their needs and wants. Moreover, this is why people pay a lot of money to get better services because it plays an important to fulfil human wants.

7 0

4 years ago

The CEO of the company you are interning for states that her number one goal for the year is to maximize the company’s profit.

Zanzabum

Answer:

Explanation:

Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.

Using profit as measure of performance for manager may encourages dysfunctional behavior.

In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory

On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.

When this is used as a performance measure , it very difficult to manipulate in the short-term.

6 0

4 years ago

When the amount of revenue collected in advance decreases during an accounting period:(A) Accrual-basis revenues exceed cash col

otez555 [7]

Answer:

The correct answer is letter "A": Accrual-basis revenues exceed cash collections from customers.

Explanation:

Revenue collected in advance are profits collected usually at the beginning of a contractual agreement that implies obligations from the firm for a certain time. For instance, insurance companies charging a one-time payment for an annual policy fall into this category.

The accrual basis of accounting states that profits are reported on the income statement as they are earned. In that case, if the revenue collected in advance decreases, the accrual-basis revenues will be higher than the cash collections from customers under the advanced payment method.

5 0

3 years ago

Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t

posledela

Answer:

Based on the DuPont equation and given information, ROE of Harrington Inc is 13.818%.

Explanation:

We have to find the total equity and total debt of Harrington Inc in order to apply the DuPont equation for finding ROE because net income, sales of Harrington Inc. are already given.

- To find Harrington Inc's total debt, apply the Debt-to-capital formula: The Harrington Inc's total debt/The Harrington Inc's total capital = 45% => Harrington Inc's total debt = The Harrington Inc's total capital * 45% = $250,000 x 45% = $112,500;

- To find Harrington Inc's total equity, apply the accounting equation Asset = Liabilities + Owner's Equity: The Harrington Inc's total equity = The Harrington Inc's total asset - The Harrington Inc's total debt = $250,000 - $112,500 = $137,500;

- Using the Dupont equation, calculate the ROE as followed:

(NI/Sales)* (Sales/ Total assets) * (Total assets/ Total common equity) = (19,000/325,000) * ( 325,000/ 250,000) * (250,000/137,500) = 13.818%.

- Thus, the ROE = 13.818%.

5 0

4 years ago

Blue Spruce Company has the following information available for September 2017.

slega [8]

Answer:

$140

450

Explanation:

unit contribution margin = price - Unit

Variable costs = $468 - $328 = $140

Breakeven point is the number of units produced and sold at which net income is equal to zero.

Q = F / P - V

$63,000 / 140 = 450

I hope my answer helps you

5 0

3 years ago