Answer:
c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Explanation:
An unrelated diversification can be defined as a situation in which an existing business or company enters or invest in an entirely new business or industry that do not have any similarity whatsoever with its original business or product line. For example, an automobile manufacturing company that decides to acquire or invest in a clothing or shoe business.
Hence, the two biggest drawbacks or disadvantages of unrelated diversification are demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Also, the difficulties in successfully managing a collection of unrelated different business and having minimal competitive advantage potential over its rivals in the industry that cross-business strategic fit provides is another disadvantage of unrelated diversification
Answer:
Option (B) is correct.
Explanation:
Given that,
Accounts receivables = $1,500,000
Allowance for doubtful accounts = $90,000
Expected uncollectibles = $125,000
The collection of accounts receivables after the adjustment for bad debt expense is determined by deducting the expected uncollectibles from the total amount of accounts receivables.
Accounts receivable amount expected to be collected after adjustment for bad debt expense:
= Accounts receivables - Expected uncollectibles
= $1,500,000 - $125,000
= $1,375,000
Answer:
$15.64
Explanation:
first we must determine the market value of the bond without the warrants:
PV of face value = $1,000 / (1 + 3.5%)⁵⁰ = $179.05
PV of coupon payments = $25 x 23.45562 (PV annuity factor, 3.5%, 50 periods) = $586.39
market value = $765.44
the market value of the 15 warrants = $1,000 - $765.44 = $234.56
market value per warrant = $234.56 / 15 = $15.64
Answer:
$410,000
Explanation:
The computation of the ending inventory under the LIFO method is shown below:
= Year end cost + difference of amount × price level index
where,
Year end cost = Beginning cost
Difference of amount = $400,000 - $300,000 = $100,000
Price level index = $440,000 ÷ $400,000 = 1.1
So, the inventory cost is
= $300,000 + $100,000 × 1.1
= $300,000 + $110,000
= $410,000
Answer:
1) I used an excel spreadsheet
2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
Dr Cash 7,000
Dr Equipment 3,000
Cr DeShawn Tyler, capital 10,000
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
Dr Office supplies 500
Cr Accounts payable 500
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
Dr Cash 4,000
Cr Landscaping Revenue 4,000
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Dr Cash 1,000
Cr Unearned Landscaping Revenue 1,000
3)
Cash (101)
debit credit
7,000
4,000
<u>1,000 </u>
12,000
Office Supplies (124)
debit credit
500
Equipment (167)
debit credit
3,000
Accounts Payable (201)
debit credit
500
Unearned Landscaping Revenue (236)
debit credit
1,000
D. Tyler, Capital (301)
debit credit
10,000
Landscaping Revenue (403)
debit credit
4,000