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shtirl [24]
3 years ago
15

Examine the quarterly sales data in a little different way. Contruct two pie charts, one for sales in 2012 and the other for sal

es in 2013. Does it appear that sales are becoming more seasonal or less seasonal?
Revenues
Quarter 2011 2012 2013
$ 767 $ 10,613 $ 30,342
$ 2,174 $ 6,424 $ 33,867
$ 9,687 $ 19,283 $ 34,246
$ 8,999 $ 33,019 $ 43,783
Totals $ 21,626 $ 69,338 $142,238
Business
1 answer:
julsineya [31]3 years ago
7 0

Answer:

sales are becoming less seasonal

Explanation:

besides constructing a pie chart, we can also answer this question by percentages (which is more exact).

2012:

total sales = $69,338

Q1 sales = $10,613 / $69,338 = 15.31%

Q2 sales = $6,424 / $69,338 = 9.26%

Q3 sales = $19,283 / $69,338 = 27.81%

Q4 sales = $33,019 / $69,338 = 47.68%

2013:

total sales = $142,238

Q1 sales = $30,342 / $142,238 = 21.33%

Q2 sales = $33,867 / $142,238 = 23.81%

Q3 sales = $34,246 / $142,238 = 24.08%

Q4 sales = $43,783 / $142,238 = 30.78%

During 2012, almost 50% of total sales happened during Q4, something similar to selling toys which are extremely seasonal due to Christmas.

During 2013, this changed since Q4 sales only represent 30% of total sales. Sales increased during Q1 and Q2, and slightly decreased in Q3. They are much more similar now, since sales are almost evenly spread throughout the year.

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An analysis of a firm's financial ratios over time that is used to determine the improvement or deterioration inits financial si
katrin [286]

Answer:

The correct option is E.

Explanation:

Trend analysis is the one which states the analysis of the firm's or company' s financial ratios over the period of time and that is used to assess the deterioration or improvement in the financial situation of the company or firm.

Trend analysis is a technique which shows a trend the company financial ratios states and from that it can be determined that it is improving or deterioration.

Therefore, the correct option is E

3 0
3 years ago
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attashe74 [19]
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5 0
3 years ago
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,200,000; preferred 8% sto
Sonbull [250]

Answer:

Number of times bond interest charges were earned = 5.44

Explanation:

Given data,

Bond Interest Rate = 6%

Bond Amount = $1200000

Net Income before Income Tax = $320000

Bond Interest charges Earned :

= Bond Value × Interest Rate

= $1,200,000 × 6%

= $72,000

Net Income before Interest :

= Net Income Income Before Interest + Interest

= $320,000 + $72,000

= $392,000

Number of times bond interest charges were earned :

= Net Income before Interest and taxes ÷ Interest charges

= (392,000 ÷ 72,000 )

= 5.4444

Number of times bond interest charges were earned = 5.44

8 0
3 years ago
1. You and your best friend are brilliant entrepreneurs who are considering opening your own business tutoring struggling colleg
Anuta_ua [19.1K]

Answer:

a. Accounting profit for the business = $3,500

b. Economic loss = $1,000

c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation.  In subsequent years, the revenue may increase to generate better economic profit.  This is the labor, risk, and reward of entrepreneurship.

d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs.  They are merely laborers who cannot assume any risk for greater rewards tomorrow.

Explanation:

Cost of business per month:

Operating expenses = $4,000

Lease of building =        2,000

Total expenses =        $6,000

Revenue =                 $10,000

Accounting profit       $4,000

Economic profit:

Revenue =               $10,000

Total expenses =     $6,000

Opportunity costs:

Lost salaries              4,500

Lost Interest                500

Total costs             $11,000

Economic loss =     $1,000

4 0
3 years ago
At the beginning of 2020, Concord Company acquired a mine for $3,251,600. Of this amount, $124,000 was ascribed to the land valu
Sav [38]

Answer:

A. $737,520

B. $530,320

Explanation:

a. Computation for the total amount of depletion for 2020.

First step is to calculate the Depletion Rate

Depletion Rate = ($3,251,600 - $124,000 + $49,600 + $210,800)/12,100,000

Depletion Rate= $3,388,000/ 12,100,000

Depletion Rate= 0.28

Now let calculate the total amount of depletion for 2020.

2020 Total amount of depletion= 0.28 × $2,634,000

2020 Total amount of depletion= $737,520

Therefore the total amount of depletion for 2020 is $737,520

B. Computation for the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

Expense amount charged= ($737,520/$2,634,000)* 1,894,000

Expense amount charged=0.28 *1,894,000

Expense amount charged=$530,320

Therefore the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020 is $530,320

7 0
3 years ago
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