Answer:
See answers below
Explanation:
Incremental income after tax
Incremental sales. $115,000
Less:
Expected uncollectibles
(115,000 × 9%) $10,350
Additional collection cost
(115,000 × 6%) $6,900
Production and selling cost
(115,000 × 75%) $86,250
Total balance. ($103,500)
Increase in before- tax inc. $11,500
Less: tax 30%. ($3,450)
Increase in after tax income $8,050
a. Incremental income after taxes $8,050
b. Johnson's incremental return on sales
= Increase in after - tax income / incremental sales
= $8,050 / $115,000
= 7%
c. Incremental return on new average
Incremental sales. $115,000
Accounts receivable
turnover ratio. 3
Average investments.
in assets $38,333
*Note: Average investment in assets = Sales / Accounts receivable turnover ratio.
Incremental return on new average investment
= Increase in after tax income / Average investments in assets
= $8,050 / $38,333
= 21%
Answer:
1. purchasing
2. Financial.
3. An increase.
4. Economic growth.
Explanation:
Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. It focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Most people recognize that, as a group, consumers are the pivotal participants in the economy, The purchasing decisions made by consumers determine which goods and services will be produced by businesses, just as their investment and saving decisions will strongly influence conditions in the financial markets.
Another indication of the importance of consumers is the effect their collective spending has on the economic activity level observed in the economy. An increase in the level of consumer spending is usually credited with causing economic growth and all benefits or costs that go with it.
Essentially, term structure of interest rates is the relationship between interest rates or bond yields and different terms or maturities. ... The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monetary policy conditions.
Answer:
a)
To my view, the MD viewpoint is better. In companies the existing process is usually analyzed and the pain points identified whenever there is a need for change. The new system is simply a change to the existing system. The stakeholders' specific needs are not completely addressed. The MD calls for a collection of and analysis of demands from scratch to share its needs , requirements and inhibitions between the principal stakeholders. The CIO and their staff would be able to assess in the requirements review process what worked and what did not work well for the organization.
In assessing the current process, the CIO and his team will align their thinking process with the pain points and correct the existing system. They are not going to build the system in a fresh light. A new system that meets the needs of stakeholders can be developed. For everybody, this is a win-win situation. The point of view of MD is therefore more logical and related.
b)
In the particular case, the most logical and comprehensive system analysis method is:
Primary stakeholder requirements collection: Primary stakeholders using the system must be consulted on their specific requirements and needs. It is also necessary to consider the limitations identified by stakeholders.
Comprehension of existing system and pain points: the current system can be analysed based on requirements collection and pain points can be emphasized in the current system.
A new system that will win for everyone: the new system must primarily comply with the needs of the stakeholders.
Presentation and approval of the system blueprint to stakeholders
Development and implementation of the system: system development can be carried out by the agile method of sprinting.
Monitoring and control of the system: to check for performance deviations, the system implemented should be observed. In order to monitor deviations, specific intervention can be implemented.
