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zysi [14]
2 years ago
14

Which type of economy provides the least incentive for companies and workers to improve?

Business
2 answers:
netineya [11]2 years ago
7 0

Answer:

command

Explanation:

aleksklad [387]2 years ago
5 0

Answer:

A. Command economy

Explanation:

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Pearl Corporation reported net income of $49,100 in 2020. Depreciation expense was $17,200. The following working capital accoun
aliya0001 [1]

Answer:

Net operating cash flow   $68,300

Explanation:

Operating cash flow is the amount of cash generated by a company from its main and normal business activity. This cash flow is useful to gauge the financial viability of a firm's business activity; the larger the better.

It is essentially computed as the net movement of cash inflow and outflow in respect of a business activities.

It is computed as follows:                          

                                                                  $

Net income                                              49,000

Add deprecation                                      17,200

Less increase in receivable                    (11.200)

add increase in payables                         <u>13,300</u>

Net operating cash flow                          <u> 68,300</u>

Note that only items that relate to trading which is the core business area of the Pearl Corporation are considered. Depreciation is  added because it is a non-cash item initially deducted from net income.

An increase in receivable means a reduction in cash while an increase in payables implies cash savings

Net operating cash flow   $68,300

3 0
2 years ago
True or false: one reason for the growth of sponsorships has been the need for companies to break through the clutter of adverti
gizmo_the_mogwai [7]

It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

<h3>What is the purpose of sponsorships in a firm?</h3>

sponsorships is essential for the firm because it will help them to be able to sponsor their advertisement of their brand so as to bring more profit.

In this case, It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

Learn more about sponsorships on:

brainly.com/question/1047489

#SPJ1

3 0
2 years ago
Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but th
Ilia_Sergeevich [38]

Answer: B) False

Explanation: Management by objectives (MBO) is a type management which it's main goal is to improve the performance of an organization by means of stating the objectives which of the organisation and is usually agreed on by both the management and the employees. In the case above some objective have being put in place by Candice using MBO method, which she later discovered that some department are not complying with. This would affect the results of the MBO program she introduced, for an MBO to yield improve results it needs full cooperation from employees.

6 0
3 years ago
N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resol
erma4kov [3.2K]

Answer:

Credit Treasury Stock $20,000

Explanation:

When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i.e. in this case we acquire the treasury stock at a price of $20.

Cash (1,000 * 12)                                    12,000

Additional Paid in Capital                        8,000

                         Treasury Stock (1,000 * 20)               20,000

6 0
3 years ago
The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in th
OLEGan [10]

Answer:

Pelican Paper, Inc., and Timberland Forest, Inc.

Financial leverage and profitability Ratio Analysis

A. Computation of debt and coverage ratios:

1. debt ratio  = Total debt to Total assets x 100

Pelican = $1,000,000/$10,000,000 x 100

= 10%

Timberland =v$5,000,000/$10,000,000 x 100

= 50%

2. times interest earned ratio = EBIT/Interests

Pelican = $6,250,000/$100,000

= 62.5 times

Timberland = $6,250,000/$500,000

= 12.5 times

A discussion of their financial risk and ability to cover the costs:

Pelican Paper's financial leverage is 10% compared to Timberland's 50%, showing that debt creditors finance and lay claim to half of the company's assets.  This is very high and not attractive to potential investors and creditors.  Timberland has already hampered its ability to borrow more as it is highly leveraged.  Whereas Pelican Paper can meet its debt obligations and pay its interest expenses 62.5 times from current earnings, these pale in comparison with Timberland's 12.5 times, further jeopardizing its opportunities for more debt financing.

B. Calculation of the profitability ratios:

1. Operating profit margin  = EBIT/Sales x 100

Pelican Paper = $6,250,000/$25,000,000 x 100 = 25%

Timberland = $6,250,000/$25,000,000 x 100 = 25%

2. Net profit margin  = (EBIT less Interest)/Sales x 100

Pelican Paper = ($6,250,000 - $100,000)/$25,000,000 x 100

= $6,150,000/$25,000,000 x 100 = 24.6%

Timberland = ($6,250,000 - $500,000)/$25,000,000 x 100

= $5,750,000/$25,000,000 x 100 = 23%

3. Return on total assets  = EBIT/Total Assets x 100

Pelican Paper = $6,250,000/$10,000,000 x 100

= 62.5%

Timberland = $6,250,000/$10,000,000 x 100

= 62.5%

4. Return on common equity = Earnings available to Common Stockholders/Equity x 100

Pelican = $3,690,000/$9,000,000 x 100

= 41%

Timberland = $3,450,000/$5,000,000 x 100

= 69%

A discussion of their profitability relative to one another:

The two companies make the same level of operating profit margin at 25%, but Pelican's net profit margin of 24.6% is better than Timberland's 23%.  They show that Pelican's management has better ability to control expenses than Timberland's.

The returns on assets are similar for both companies, but Timberland performed better than Pelican Paper in terms of the return on equity.  This shows that Timberland with ROE of 69% is making larger returns for its common stockholders than Pelican because it is leveraging debts, whose interests are tax-deductible, and also using less equity in generating the returns.

C. The larger debt of Timberland has made it more profitable than Pelican Paper because the debt interests are deductible from EBIT before tax expense is computed and it reduces the tax burden for the company, thus making it to pay less tax and saving more profits for distribution to its stockholders.

However, this higher return to the investors in Timberland also comes with higher risks, as the investors are exposed to debt risks, higher pressure to satisfy debt creditors, heightened interference and oversight from creditors since they own half of the assets of the company, and an increased threat of business takeover in case of debt default.

Explanation:

a) Data:

Items                        Pelican Paper, INC    Timberland Forest, INC

Total assets              $10,000,000               $10,000,000

Total equity                  9,000,000                   5,000,000

Total Debt                     1,000,000                   5,000,000

Annual Interest                100,000                      500,000

Total Sales                 25,000,000                25,000,000

EBIT                              6,250,000                  6,250,000

Earnings available for  common

stockholders               3,690,000                   3,450,000

b) Ratio computation and analysis help companies to compare their performances and positions with competitors.  They can spot risks facing a company and even point out ways to address such business risks.

8 0
3 years ago
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