Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
Answer:
Under IAS 12, current and deferred taxes are measured on the basis of:
rates anticipated when temporary differences reverse.
Explanation:
According to IAS 12, the measurement of the deferred tax assets and deferred tax liabilities are based on the expected tax rate when the underlying asset or liability is recovered or settled. Deferred taxes arise from the temporary or timing differences between the carrying amount of an asset or liability in the financial statement and the tax base.
Answer:
Percentage of total return is -7.87
Dividend yield is 2.47%
Explanation:
Rate of return is the rate of income earned during the period in which the investment is held. It includes any income in the form of dividend and price difference.
Dividend received = $2.15
Price difference = Current price - Initial Price = $78 - $87 = -9
Rate of return = ( ( Dividend received + Price change ) / Initial price ) x 100
Rate of return = ( ( $2.15 + (-9) ) / 87 ) x 100
Rate of return = ( -6.85 / $87 ) x 100
Rate of return = -7.87%
Dividend Yield = Dividend / Current Stock price = $2.15 / $87 = 0.0247 = 2.47%
