All categories

2 years ago

Which type of promotion does a business use in case its sales revenue has fallen below expectations?

2 answers:

4 0

Businesses generally use PROMOTIONS to attract more customers quickly, buying promotions will make your brand more known and make sales skyrocket
-hope this helps!!

bonufazy [111]2 years ago

4 0

Answer:

sales promotion

Explanation:

Helps encourage customers to buy their products, they might use this when their sales revenue is falling short of expectations

You might be interested in

Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for

Reika [66]

Answer and Explanation:

The computation of the amount is shown below:

a. For FOB destination

= Merchandise price - Returns and allowances - discount

= $6,700 - $1,750 - ($6,700 - $1,750 )× 2%

= $6,700 - $1,750 - $99

= $4,851

b. For FOB shipping point

= Merchandise price - Returns and allowances - discount + Freight In

= $3,300 - $1,200 - ($3,300 - $1,200) × 1% + $200

= $3,300 - $1,200 - $21 + $200

= $2,279

7 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><u>Bonds:</u></h3>

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

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

The issuance of the bonds by Limbaugh (L)

<u>Solution:</u>

<u>Following is the journal entry for the issuance of bonds on August 1, 2021:</u>

<u>1st August 2021:</u>

Debit: Cash $31,200,000 <u>(Working 1)</u>

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

Credit: Bonds payable $30,000,000

Credit: Equity - stock warrants $4,800,000 <u>(Working 2)</u>

<u>Working 1:</u>

Calculation of cash received:

Cash received = Face value × Issued rate

Cash received = $30,000,000 × 104%

Cash received = $31,200,000

<u></u>

<u>Working 2:</u>

<u>Calculation of amount of equity - stock warrants:</u>

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

<u>Working 3: </u>

<u>Calculate the discount on bonds payable:</u>

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

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

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

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

<u></u>

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)

<u>Working 4: </u>

<u>Calculate the investment in stock warrants:</u>

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

<u>Working 6:</u>

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

<u>Working 7:</u>

<u>Calculate discount on bond investment:</u>

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

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

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

Solution:

Following is the journal entry for exercise of warrants by <u>Limbaugh</u>:

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

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

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

<u>Working 8: </u>

<u>Amount of cash received from the exercise:</u>

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

<u>Working 9:</u>

<u>Amount of equity - stock warrants from exercise:</u>

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

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

Equity - stock warrants = $960,000

<u>Working 10:</u>

<u>Amount of common stock:</u>

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

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

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:

<u>Amount of equity - stock warrants from exercise:</u>

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

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

Equity - stock warrants = $960,000

<u>Working 12:</u>

<u>Calculate the amount of cash paid for exercise:</u>

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

<u>Working 13:</u>

<u>Investment in common stock:</u>

<u>Amount of common stock:</u>

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

Learning management systems are also known as knowledge work systems true or false

omeli [17]

The answer is false. Learning management systems is not known as knowledge work systems. Knowledge work systems are maintained by knowledge workers who manage and create knowledge. Knowledge, in this context, is universal and can be moved easily. It can include structured and unstructured documents.

6 0

3 years ago

Economics Airlines currently spends $20,000 per month in airport fees and $10,000 per flight for fuel, crew, and airplane mainte

Kamila [148]

Answer:

b. 20

Explanation:

For 5 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (5 X 10000) + 20,000 = $70,000

For 6 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (6 X 10000) + 20,000 = $80,000

Additional Cost for 6th flight = $80000-70,000 = $10,000

Minimum No. of Passenger to cover the cost = Additional cost / Ticket price per seat

Minimum No. of Passenger to cover the cost = $10,000 / $500 = 20 seats passengers.

3 0

3 years ago

A Louisiana lease must be in writing to be valid: Select one: A. If the lease is for more than one year B. If the lease is for i

olchik [2.2K]

A Louisiana lease must be in writing to be valid at no time since written leases are not required in Louisiana. This is further explained below.

<h3>What is a lease?</h3>

Generally, lease is simply defined as a contract wherein one party transfers land, property, services, etc. to another for a defined length of time, often in exchange for monthly payments.

In conclusion, Since written leases are not needed in Louisiana, a verbal lease in Louisiana is legal at any time.