Balance sheet accounts are also called temporary accounts. true false

The level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to

lesya692 [45]

The difficulty level that a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated.

<h3>What is vertical integration?</h3>

It should be noted that vertical integration simply means the process of acquiring business operations towards identical production.

In this case, the difficulty level that a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated.

Learn more about vertical integration on:

brainly.com/question/19815172

4 0

2 years ago

Pal Corp.'s 2004 dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the d

VashaNatasha [74]

Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.

7 0

3 years ago

Suppose that TapDance, Inc.’s, capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of de

Rzqust [24]

Answer:

11.07%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

= (0.25 × 8%) × ( 1 - 34%) + (0.75 × 13%)

= 1.32% + 9.75%

= 11.07%

We simply multiply the weighatge with its capital structure so that the correct weightage cost of capital can come.

5 0

3 years ago

Cromley Corporation reports annual sales of $1,800,000. Its accounts receivable throughout the year averaged $150,000. a. Comput

Mandarinka [93]

Answer:

a. accounts receivable turnover rate is 12 times

b. Average days sales outstanding is 30 days

Explanation:

Computation of accounts receivable turnover rate

The accounts receivable turnover rate is determined by dividing the credit sales with the average receivables.

Credit Sales = $ 1,800,000

Average Receivables = $ 150,000

Receivables Turnover rate = $ 1,800,000/ $ 150,000 = 12 times

Computation of Average Days outstanding

Average days outstanding is computed by dividing the annual credit sales by 365 and using that as a divisor with the average receivables

Annual Credit Sales = $ 1,800,000

No of days 365

Average daily credit sales = $ 1,800.000/365 = $ 4,931.50

No of days sales = Average receivables/ Average daily credit sales

= $ 150,000/ $ 4,931.5 = 30.4 days rounded to 30 days

6 0

3 years ago

If the cross-price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity

Morgarella [4.7K]

<u>Answer: </u>

We can expect to see a large change in the quantity demanded for Good A.

<u>Explanation: </u>

As the price change in the price of good B is inelastic, it is but clear that the price of good B would not show any fluctuations even if there is an increase or decrease in the demand for good B.
As the price of good B is not subject to decrease in the near future, it can be expected that the demand for good A would exhibit a sudden rise.

5 0

3 years ago