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Vikentia [17]
3 years ago
7

The amount of xylene that can be used in household paint is legally limited to 0.03 percent. Anything beyond this amount is haza

rdous to health and the environment, and considered a legal offense. Consequently, CW Paints Corp. has vouched to make its products as safe as possible. Therefore, it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run. Which of the following responsibilities is CW Paints Corp. primarily compromising in this scenario?
A) legal responsibilities toward the government
B) economic responsibilities toward its shareholders
C) philanthropic responsibilities toward the local community
D) ethical responsibilities toward the society
Business
1 answer:
julia-pushkina [17]3 years ago
3 0

Answer: B) economic responsibilities toward its shareholders

Explanation:

The primary purpose of a company is to maximize shareholder wealth. This means that it is to pursue strategy that would ensure the maximum return to its shareholders. This is also known as its economic responsibility towards shareholders.

Producing xylene-free paints reduces the dividends that are going to shareholders so it would seem that shareholder wealth is not being maximized and they are not getting the maximum return they could get so the company is violating its economic responsibilities towards shareholders. It is for a good cause though.

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When designing a management support system, using a(n) ____ can help reduce frustration.
DiKsa [7]

When designing a management support system, using (n) Progress bars acan help reduce frustration.

A progress bar is a graphical control used to show the progress of advanced computer operations, such as: B. Download, file transfer, or install for visualization. Graphs may be accompanied by text representing progress in percentage format.

A progress bar is used to indicate the progress of a task. For example, when uploading or downloading something from the internet, it's a good idea to show the download/upload progress to the user. Android has a class called ProgressDialog that can be used to create a progress bar.

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7 0
1 year ago
Company A uses an accelerated depreciation method while Company B uses the straight-line method. All other things being equal, d
babymother [125]

Answer:

d. A larger fixed assets turnover ratio and a larger gain on asset disposal

Explanation:

Accelerated depreciation is a method of depreciation whereby the book value of an asset is rapidly depreciated or reduced i.e at an accelerated rate.

This method usually minimizes taxable income in the initial years as a higher amount of depreciation is claimed.

Fixed assets turnover ratio refers to what percentage of net sales is attributable to an entity's fixed assets. It is expressed as:

\frac{Net\ Sales}{Average\ Fixed\ Assets}

Gain on sale of asset disposal = Sale value - Book Value

Book Value =  Cost less accumulated depreciation till date

As can be seen, Average fixed assets balance would reduce thereby increasing fixed assets turnover ratio.

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5 0
3 years ago
14) If the investor wants to have a portfolio with a 16% expected return, the minimum standard deviation he can achieve is a) 40
stellarik [79]

The main aim in which any investor puts his capital into a business is to:

  • Make profit.

<h3>What is an Investment?</h3>

This refers to the value which is given to a certain venture or business in order to yield profit after a period of time.

With this in mind, we can see that several parameters are missing from the question, but expected returns are measures of probability that are used to calculate profit and ROI.

Please note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.

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8 0
2 years ago
Tax evasion versus tax avoidance
lora16 [44]

Answer:

1. The act of reducing taxes by deliberately understating income or overstating deductions is called ______

Tax evasion

2. Leaving the tip earnings out of her income on her tax returns is

Tax evasion

Explanation:

Tax evasion is deliberate reduction of gross income either by excluding, understating, omitting income, or overstating deductions.  It is not legal.  Tax avoidance is managing taxable income by effective tax planning (e.g. through investments, insurance, etc.) so that less tax is paid.  It is legal and allowed.

8 0
2 years ago
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $640 were
andrezito [222]

The preparation of the classified balance sheet for Catena's Marketing Company is as follows:

Catena's Marketing Company

Classified Balance Sheet

At the end of the current year

Assets:

<u>Current assets</u>:

Cash                                                    $ 1,550

Accounts receivable                            2,240

Interest receivable                                   121

Prepaid insurance                                1,640

Total current assets                                        $5,551

<u>Long-term assets:</u>

Long-term notes receivable            $2,820

Equipment                           $15,100

Accumulated depreciation  (2,940) 12,160

Total long-term assets                                 $14,980

Total assets                                                    $20,531

Liabilities and Equity:

Liabilities:

<u>Current Liabilities:</u>

Accounts payable                                          $2,240

Dividends payable                                              640

Accrued expenses payable                            3,800

Income taxes payable                                     2,520

Unearned rent revenue                                     320

Total current liabilities                                $9,520

<u />

<u>Equity:</u>

Common Stock (800 shares)            $80

Additional paid-in capital               3,500

Retained earnings                           7,431    $11,011

Total liabilities and equity                         $20,531

<h3>Preparing the Classified Balance Sheet:</h3>

To prepare the classified Balance Sheet of Catena's Marketing Company, we must first determine the net income and the ending retained earnings as follows:

<h3>Income Statement</h3>

For the current year

Sales revenue                                 $37, 350

Interest revenue                                      150

Rent revenue                                         600

Total revenue                                 $38,100

Expenses:

Wages expense                 18,100

Depreciation expense        1,789

Utilities expense                   340

Insurance expense              750

Rent expense                   9,300

Income tax expense        2,720      32,999

Net income                                       $5,101

<h3>Statement of Retained Earnings</h3>

For the current year

Retained earnings (previous year)  $2,330

Net income                                          5,101

Retained earnings (current year)   $7,431

Note that the effect of the cash dividends declared was already included in the Retained earnings of $2,530.

<h3>Data and Calculations:</h3>

Catena's Marketing Company

Adjusted Trial Balance

End of the Current Year        Debit      Credit

Cash                                      $ 1,550

Accounts receivable              2,240

Interest receivable                     121

Prepaid insurance                  1,640

Long-term notes receivable 2,820

Equipment                             15,100

Accumulated depreciation                 $ 2,940

Accounts payable                                  2,240

Dividends payable                                    640

Accrued expenses payable                  3,800

Income taxes payable                           2,520

Unearned rent revenue                           320

Common Stock (800 shares)                    80

Additional paid-in capital                     3,500

Retained earnings                                2,330

Sales revenue                                   37, 350

Interest revenue                                      150

Rent revenue                                         600

Wages expense                 18,100

Depreciation expense        1,789

Utilities expense                   340

Insurance expense              750

Rent expense                   9,300

Income tax expense        2,720

Total                            $ 56,470   $ 56,470​

Required:

Prepare a classified Balance Sheet at the end of the current year.

Learn more about preparing classified balance sheet at brainly.com/question/15843155

8 0
3 years ago
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