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4 years ago

How does the following transaction impact cash flow?

Business

1 answer:

Sloan [31]4 years ago

5 0

Answer:

Increase

The accounts receivable asset shows how much money customers who bought products on credit still owe the business; this asset is a promise of cash that the business will receive. Cash doesn’t increase until the business collects money from its customers.

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Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category s

lara31 [8.8K]

Answer: brand extension

Explanation: Brand extension refers to a marketing strategy which involves a well-known, developed and popular brand who has enjoyed continuous success in a particular market aims to delve into another area of the market or totally different product category using the same brand name.

In the scenario above, Colgate, a household name in toothpaste manufacturing decided to launch the Colgate kitchen entree which an entirely different market domain. The innovation strategy wasn't successful as it got consumers confused who saw them as developers iating from their original domain. Even though Colgate's intention was to use their existing popularity to extend their brand.

7 0

3 years ago

has a monthly target operating income of $ 15 comma 000. Variable expenses are 70% of sales, and monthly fixed expenses are $

seraphim [82]

Answer:

Margin of safety=55.6%

Explanation:

The formula for the operating income is as folows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=Answer:

Explanation:

The formula for the operating income is as follows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=$90,000

Current sales=$90,000

The formula for margin of safety is as follows;

Margin of safety=(Current sales level-break even point sales level)/current sales levels

At break even,

Operating income=0

0=S-(0.7 S+12,000)

0=S-0.7 S-12,000

0.3 S=12,000

S=12,000/0.3

S=40,000

Break even sales=$40,000

replacing;

Margin of safety=((90,000-40,000)/90,000}×100

Margin of safety=55.6%

7 0

4 years ago

Obtain the relevant authoritative literature on recognition of contingent losses. What is the specific eight-digit Codification

podryga [215]

Answer:

310-10-50-8

Codification citation for trade receivables that do not accrue interent until a specified period has elapsed, non accrual status would be the point when accrual is suspended after the receivable becomes past due.

Explanation:

Accounting standards codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to non governmental entities.

6 0

4 years ago

Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials p

Kaylis [27]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Sales= 5,000 units

Selling price= $75

Product costs include:

Direct materials per helmet= $30

Direct labor per helmet= $8

Variable factory overhead per helmet= $4

Total fixed factory overhead 20,000

Variable selling expense is a commission of $3 per helmet

The fixed selling and administrative expense totals $29,500

The total variable cost is calculated as follow:

Total variable cost= unitary variable cost*number of units

Unitary variable cost= direct material + direct labor + variable overhead + variable selling and administrative

Total variable cost= (30 + 8 + 4 + 3)*5,000= $225,000

Total fixed costs= 20,000 + 29,500= $49,500

Income statement:

Sales= 5,000*75= 375,000

Total variable cost= (225,000)

Contribution margin= 150,000

Total fixed factory overhead= (20,000)

The fixed selling and administrative expense= (29,500)

Net operating income= $100,500

3 0

4 years ago

A company budgeted unit sales of 204,000 units for January, 2020 and 240,000 units for February 2020. The company has a policy o

ArbitrLikvidat [17]

Answer:

the number of units to be produced is 214,800 units

Explanation:

The computation of the number of units to be produced is given below;

= Budgeted units sales + required ending inventory - opening inventory

= 204,000 units + (240,000 units × 30%) - 61,200 units

= 204,000 units + 72,000 units - 61,200 units

= 214,800 units

Hence, the number of units to be produced is 214,800 units

We simply applied the above formula so that the correct units could come

7 0

3 years ago