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3 years ago

What particular activities are involved in the enterprise's internal operational scope?

Business

1 answer:

nika2105 [10]3 years ago

4 0

Answer:

A business internal operational scope is related to the dailya activities of the different business divisions that any company has:

Explanation:

The Marketing Department has operations like elaborating market studies, selling, and promoting products.

The Human Resources Department has operations like recruiting and training personnel.

The Operations department has operations related to the production process of the company (for a manufacturing firm)

And the Financial department has operations related with accounting and obtaining funds for the firm.

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What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the i

jarptica [38.1K]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cash flow= $2,250

n= 4

i= 5%

Additional investment= $3,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,250*[(1.05^4) - 1]} / 0.05

FV= 9,697.78 + 3,000

FV= $12,697.78

Now, the present value:

PV= FV/(1+i)^n

PV= 12,697.78/(1.05^4)

PV= $10,446.5

3 0

3 years ago

Einstein Motors, has a capacity to produce 25,000 electric cars. Due to a temporary subsidy announced, there is a sudden increas

kaheart [24]

Answer:

Total Contribution margin: 107,500,000

Explanation:

Contribution: sales revenue - variable cost

normal price 5,000

peak-load price: 5,000 + 20% = 5,000 x 1.2 = 6,000

revenue

20,000 units at 5,000 100,000,000

5,000 untis at 6,000 30,000,000

Total revenue 130,000,000

variable cost:

25,000 units x 900 = (22,500,000)

Total Contribution margin: 107,500,000

5 0

3 years ago

On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on July 31,

kodGreya [7K]

Answer:

Answers are journal entries, in the explanation box

<h2>Explanation:</h2><h3>Bonds:</h3>

Bonds is an interest bearing security or long term promissory note that a company represents while borrowing money with the interested investors.

<h2>Requirement 1:</h2><h2>Prepare the journal entries on August 1, 2021, to record:</h2><h3>Requirement 1(a):</h3>

The issuance of the bonds by Limbaugh (L)

Solution:

Following is the journal entry for the issuance of bonds on August 1, 2021:

1st August 2021:

Debit: Cash $31,200,000 (Working 1)

Debit: Discount on bonds payable $3,600,000 (Working 3: Note 1)

Credit: Bonds payable $30,000,000

Credit: Equity - stock warrants $4,800,000 (Working 2)

Working 1:

Calculation of cash received:

Cash received = Face value × Issued rate

Cash received = $30,000,000 × 104%

Cash received = $31,200,000

Working 2:

Calculation of amount of equity - stock warrants:

Equity - stock warrants = Market price per warrant × number of warrants × number of bonds

Equity - stock warrants = $8 × 20 warrants × (30,000,000÷ 1,000 bonds)

Equity - stock warrants = $4,800,000

Working 3:

Calculate the discount on bonds payable:

Discount on bonds payable = Bonds payable + Equity stock warrants - Cash received

Discount on bonds payable = $30,000,000 + $4,800,000 - $31,200,000

Discount on bonds payable = $3,600,000

Note 1: Since discount on bonds issues is an expense, therefore, it is debited.

<h3>Requirement: 1 (b)</h3>

Prepare the journal entries on August 1, 2021, to record the investment by Interstate (I).

The following is the journal entry on August 1, 2021 to record the investment by Interstate (I) i.e. investor:

Debit: Investment in stock $960,000 (Working 4)

Debit: Investment in bonds $6,000,000 (Working 5)

Credit: Discount on bonds investment $720,000 (Working 7)

Credit: Cash $6,240,000 (Working 6)

Working 4:

Calculate the investment in stock warrants:

Investment in stock warrant = Equity - stock warrant × 20%

Investment in stock warrant = $4,800,000 × 20%

Investment in stock warrant = $960,000

Working 5:

Calculate the amount of investment in bonds:

Investment in bonds = Face value × 20%

Investment in bonds = $30,000,000 × 20%

Investment in bonds = $6,000,000

Working 6:

Calculate the amount of cash paid:

Cash paid = Face value × issued rate × 20%

Cash paid = $30,000,000 × 104% × 20%

Cash paid = $6,240,000

Working 7:

Calculate discount on bond investment:

Discount on bond investment = Investment in stock warrants + Investment in bonds - Cash paid

Discount on bond investment = $960,000 + $6,000,000 - $6,240,000

Discount on bond investment = $720,000

<h2>Requirement 2:</h2><h2>Prepare the journal entries for both Limbaugh and Interstate in February 2032, to record the exercise of the warrants.</h2>

<h3>Requirement 2(a)</h3>

Prepare the journal entries for Limbaugh in February 2032, to record the exercise of the warrants.

Solution:

Following is the journal entry for exercise of warrants by Limbaugh:

Debit: Cash: $7,200,000 (Working 8)

Debit: Equity - stock warrants $960,000 (Working 9)

Credit: Common stock - equity $8,160,000

Working 8:

Amount of cash received from the exercise:

Amount of cash received from the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash received from the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash received from the exercise = $7,200,000

Working 9:

Amount of equity - stock warrants from exercise:

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

Working 10:

Amount of common stock:

Amount of common stock = Cash received + equity - stock warrants

Amount of common stock = $7,200,000 + $960,000

Amount of common stock = $8,160,000

<h3>Requirement 2(b)</h3>

Prepare the journal entries for Interstate in February 2032, to record the exercise of the warrants.

Solution:

The journal entry is as follows:

Debit: Investment in common stock: $8,160,000 (Working 13)

Credit: Investment in stock warrants: $960,000 (Working 11)

Credit: Cash: $7,200,000 (Working 12)

Working 11:

Amount of equity - stock warrants from exercise:

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

Working 12:

Calculate the amount of cash paid for exercise:

Amount of cash paid for the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash paid for the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash paid for the exercise = $7,200,000

Working 13:

Investment in common stock:

Amount of common stock:

Investment in common stock = Cash paid + Investment in stock warrants

Investment in common stock = $7,200,000 + $960,000

Investment in common stock = $8,160,000

3 0

3 years ago

The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade

SVETLANKA909090 [29]

Answer:

True

Explanation:

Protectionism refers to barrier on import products by restricting products from the foreign market. it can be achieved by putting heavy taxes on imports or implying strict regulation on import products.

it is not a fixed approach it is done when a country decides to go strong in the manufacturing field or want to strengthen its domestic industries by giving subsidy for setting up industries.

5 0

4 years ago

A ___________ is an organization that is owned and controlled by the people who use it—producers, consumers and workers with sim

Galina-37 [17]

Answer:

Cooperative is the right answer.

Explanation:

A cooperative is a private organization whose operations are controlled by the owners and by those who use its products. By defination Cooperative is the right answer because mutual funds are the investment in which the owner can only withdraw or deposit in it. Furthermore, partnership is a kind of business in which shareholders pool their resources and earn a share of profit from it. Coorporation is a public company and is owned by a lot of shareholders, governed by the companies act and rules and regulations.

3 0

3 years ago