Paid $1,300 towards principal of the notes payable What is the credit and debit for this?

Grengens, a European chocolate manufacturer, received several complaints from customers about the quality of its product when it

Kay [80]

Answer:

Letter E is correct. Product disapprobation.

Explanation:

In this matter, we can say that the factor that probably dictated the adaptation of Greengens products in this scenario was the product's disapproval.

This failure of the chocolate company Greengens was due to some management error and analysis of the market in question. When entering an international market, the company must analyze a series of important variables for the product to be accepted by the local public, no matter how standardized the product is, there are some local characteristics that should not be disregarded, such as local values, culture , needs, tastes, etc., which means that an adaptation of a product or service is necessary for it to be actually accepted and consumed in a given country.

4 0

4 years ago

Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also repurchases

solong [7]

Answer:

TRUE

Explanation:

Kleister Company:

1. Issues bonds for $100 million - INFLOW

2. Repays a long-term notes payable of $10 million. - OUTFLOW

3. The company also repurchases its own shares for $12 million - OUTFLOW

4. Issues stock dividends with a market value of $5 million. - NOT A CASH FLOW

It is therefore true that Net cash flow from financing activities will be: $78 million [100 million - 10 million - 12 million] since the dividends are stock dividends not cash dividends

4 0

3 years ago

A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain, and the next payment is due

photoshop1234 [79]

Answer:

a) No, since the present value of new lease is more than old.

b) Detailed information about the explanation is shown below

c) At 39.80% nominal WACC

Explanation:

a

PV of old and new lease terms

Old Cash Flow New Cash Flow

0 0 0 0

1-9 - 1900 1-9 0

10-60 - 1900 10-60 2700

NPER 60 NPER 60

rate 1% rate 1%

PV ($85,414.57) PV ($98,250.36)

PV ( 1%, 60, 1900) PV ( 1%,9,- PV(1%,51, 2700))

Should the new lease be accepted? No, since the present value of new lease is more than old.

b) If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases?

For this part pv of old lease should be equal to pv of new lease at t = 9

85414.57 × (1.01)⁹ 93416.657

Nper 51

Rate 1%

New lease amount ( $2,347.26)

PMT (1%, 51,93416.66)

c)

Period Old Lease New Lease Change in lease

0 0 0 0

1-9 -1900 0 -1900

10-60 -1900 -2700 800

-1900

800

3.317% x 12 = 39.80%

IRR(Values 1:60)

The store owner is not sure of the 12% WACC - it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases?

At 39.80% nominal WACC

4 0

3 years ago

Joanie is an engineer at an architectural firm. she is very proud of this fact and often defines herself in terms of her work to

Korvikt [17]

This is known as "self-enhancement".

Self-enhancement is when people tend to rate themselves better than expected, trust they have a superior than normal likelihood of progress, and ascribe their victories to individual inspiration or capacity while reprimanding the circumstance for their missteps.

Self-enhancement is a kind of inspiration that attempts to influence individuals to like themselves and to keep up confidence. This thought process turns out to be particularly unmistakable in circumstances of risk, disappointment or hits to one's confidence. Self-improvement includes an inclination for positive over negative self-sees.

5 0

3 years ago

During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366

soldier1979 [14.2K]

Answer:

Balance sheet

Inventory - Understatement by $11,600

Owners equity - Understatement by $11,600

Income statement

Cost of goods sold - Overstatement by $11,600

Net income - Understatement by $11,600

Explanation:

The movement in an inventory account which is the difference between the opening and ending balances is a function of the purchases and the sales during the period.

This is captured in the equation below

Opening balance + purchases - cost of goods sold = ending balance

Hence an understatement of the ending balance would result in an overstatement of the cost of goods sold thus an understatement of the net income (and owner's equity).

The understatement in closing inventory balance is

= $378,500 - $366,900

= $11,600.

3 0

3 years ago