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3 years ago

2. The owner of a franchise benefits from brand name recognition, access to professional

Business

1 answer:

GREYUIT [131]3 years ago

7 0

Answer:

True

Explanation:

It is TRUE that the owner of a franchise benefits from brand name recognition, access to professional and nationwide advertising.

This is because the owner of a franchise has various advantages. The advantages include enhanced reputation which covers all the places there is a franchise.

Then there is an increase in management techniques and work practices, including access to national advertising to cover many places and continuous support.

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Wiemers’s 2017 income statement included net sales of $109,000, cost of goods sold of $59,500, and net income of $14,300. Comput

Blizzard [7]

Answer:

(a) Current ratio = 2.88 : 1

(b) Acid test ratio = 2.03 : 1

(d) Inventory turnover = 6.65 times

(e) Profit margin = 13.12%

(f) Asset turnover = 0.95 times

(g) Return on assets = 12.43%

(h) Return on common stockholders' equity = 14.62%

(i) Debt to assets ratio = 11.17%

Explanation:

Note: This question is not complete. See the attached pdf file for the complete question.

The explanation of the answer is now provided as follows:

a. Current ratio

Current assets = Cash + Accounts receivable (net) + Inventory = $4,100 + $20,900 + $10,400 =

Current liabilities = Accounts payable = $12,300

Current ratio = Current assets / Current liabilities = $35,400 / $12,300 = 2.88 : 1

b. Acid test ratio

Acid test ratio = (Current assets – Inventory) / Current liabilities = ($35,400 - $10,400) / $12,300 = 2.03 : 1

(c) Accounts receivable turnover.

Net sales = $109,000

Average accounts receivable = (20,900 + 23,200) / 2 = $22,050

Accounts receivable turnover = Net sales / Average accounts receivable = $109,000 / $22,050 = 4.94 times

(d) Inventory turnover.

Cost of goods sold = $59,500

Average inventory = (10,400 + 7,500) / 2 = $8,950

Inventory turnover = Cost of goods sold / Average inventory = $59,500 / $8,950 = 6.65 times

(e) Profit margin.

Net income = $14,300

Net sales = $109,000

Profit margin = Net income / Net sales = $14,300 / $109,000 = 0.1312, or 13.12%

(f) Asset turnover.

Net sales = $109,000

Average total assets = ($110,100 + $119,900) / 2 = $115,000

Asset turnover = Net sales / Average total assets = $109,000 / $115,000 = 0.95 times

(g) Return on assets.

Net income = $14,300

Average total assets = ($110,100 + $119,900) / 2 = $115,000

Return on assets = Net income / Average total assets = $14,300 / $115,000 = 0.1243, or 12.43%

(h) Return on common stockholders' equity

Net income = $14,300

Common stockholders' equity = Common stock + Retained earnings = $74,500 + $23,300 = $97,800

Return on common stockholders' equity = Net income / Common stockholders' equity = $14,300 / $97,800 = 0.1462 = 14.62%

(i) Debt to assets ratio

Total liabilities = Accounts payable = $12,300

Total assets = $110,100

Debt to assets ratio = Total liabilities / Total assets = $12,300 / $110,100 = 0.1117, or 11.17%

Download pdf

8 0

3 years ago

Reedy Company reports the following information for 2012:

asambeis [7]

Answer:

Ending WIP= $13,500

Explanation:

<u>First, we need to calculate the factory overhead:</u>

Factory overhead= 25,000*0.75= $18,750

<u>Now, the ending WIP inventory:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

68,250 = 11,000 + 27,000 + 25,000 + 18,750 - Ending WIP

Ending WIP= $13,500

4 0

3 years ago

An increase in the rate of expected inflation will Group of answer choices shift the demand for loanable funds to the left (down

Brums [2.3K]

Answer:

shift demand and supply for loanable funds to the right (up), increasing interest rates.

Explanation:

According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.

As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.

Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out

4 0

4 years ago

Describe the text's four external and internal pressures on supply chain design as they relate to crayola's supply chains for co

Mariulka [41]

Answer:

There are both internal and external elements that are going to affect the supply chain design of a company like Crayola for its expansion. The external pressure will be created through external forces that can have an adequate amount of pressure created through suppliers and others where internal pressure can be created by the management itself in order to construct a prominent supply chain design.

Explanation: External pressure are

1. Suppliers

2.distributors

3.Consumers

4 External risk factors

1. Suppliers and the availability of suppliers within the market of expansion play an important role in the determination of the supply chain design within a market.

2. Distributors: As the company is new in the market it will have to establish its market in the region in this regard distributors are very important they are the ones that will help the company in supplying finished goods from the manufacturing point to retailers and customers.

3.customer is an external force that will be affecting the supply chain design of the company.

4. External risk factors: In every market, there is a risk that is associated with the companies operating in it reeks of economic distress and others as well.

Now there are some internal factors as well which will affect the overall supply chain design of Crayola in the new market and they are as follows:

1. Company strategy: it can be said that the company’s decision will tend to affect the supply chain design the company will follow in the current market

2.Management: The management of the company plays a vital role in the supply chain process of a company. It can be said that through management the overall supply chain design is managed hence the management will have an effect on the supply chain design.

3. Workforce: Workforce of the company is very much an evident part of the company’s manufacturing and marketing process. The workforce of the company determines the effect of the firm in terms of its operation and supply chain management.

7 0

4 years ago

Nathaniel is delivering a presentation when an audience member asks a question. Nathaniel answers her question and then says, “W

nordsb [41]

D. Because he is listening to her fully and making sure he fully understands what she is asking

4 0

2 years ago