IF COUNTRIES FIND WAYS OF IMPROVING THEIR FACTOR OF PRODUCTIVITY

As the level of activity increases, how will a mixed cost in total and per unit behave? In Total Per Unit A) Increase Decrease B

Airida [17]

Answer:

A) Increase Decrease

Explanation:

As we know that

Mixed cost is the combination of both fixed cost and the variable cost

Mixed costs are costs in which one component of cost is Fixed and the other component is variable

In equation form,

Mixed cost = Fixed cost + variable cost

In the case of variable cost, the per unit would remain the same and it increased when production increases

But the fixed cost amount would remain the same but if the production rises the per unit declines

Similarly, Fixed costs remain the same in Total and decreases per unit with increase in production

Therefore option A is correct

8 0

3 years ago

Stilley Corporation had earnings after taxes of $438,000 in 20X2 with 200,000 shares outstanding. The stock price was $42.10. In

charle [14.2K]

Answer:

a) Earnings Per Share for 20X2 = 2.19

P/E ratio for 20X2 = 19.22

b) Earnings Per Share for 20X3 = 1.04

P/E ratio for 20X3 = 27.21

Explanation:

a) Compute earnings per share and the P/E ratio for 20X2.

The compute the earnings per share use the following:

Earnings Per Share for 20X2 = (Earnings after tax-Preference Dividend) / shares outstanding

$= \frac{438,000 - 0}{200,000} = 2.19$

Earnings Per Share for 20X2 = 2.19

Then find P/E ratio:

P/E ratio for 20X2 = Market Price per share / Earnings Per Share

$\frac{42.10}{2.19} = 19.224$

P/E ratio for 20X2 = 19.22

b) Compute earnings per share and the P/E ratio for 20X3.

The compute the earnings per share use the following:

Earnings Per Share for 20X3 =(Earnings after tax-Preference Dividend) / shares outstanding

$= \frac{208,000 - 0}{200,000} = 1.04$

Earnings Per Share for 20X3 = 1.04

Then find P/E ratio:

P/E ratio for 20X3 = Market Price per share / Earnings Per Share

$\frac{28.30}{1.04} = 27.21$

P/E ratio for 20X3 = 27.21

5 0

3 years ago

The net income for Sheridan Company for 2020 was $350,000. For 2020, depreciation on plant assets was $69,700, and the company i

enyata [817]

Answer:

350,000 net income

+69,700 depreciation

+13,300 loss on disposal

433,000 adjusted income

no change in working capital

cash generated from operating activities 433,000

Explanation:

We need to remove from the net incoem the non-monetary terms

The depreication is an accounting concept, it doesn't involve cash disbursements, so it is added.

Also the los son disposal doesn't involve using cash so is also removed.

Rule:

to remove a non-monetary expense we should add it.

to remove a non-monetary gain we should decrease it.

5 0

2 years ago

Companies have the opportunity to use varying amounts of different sources of financing, including internal and external sources

Mrrafil [7]

Answer:

A) Company A is the one that is financially leveraged.

Where there is the presence of debt in the capital structure of a firm, that firm is said to be Financially leveraged.

B) A is true.

A company's return on equity or expected returns increases because the use of leverage increases stock volatility. Volatility increases its level of risk which in turn increases returns. This happens only if the company is operating an ideal level of financial leverage.

On the other hand, however, but excessive debt can increase the risk of default and can lead to low returns or even bankruptcy.

Cheers!

5 0

2 years ago

Choose the correct definition of purchasing power parity.

Elanso [62]

956-455-9448 call me please

8 0

2 years ago