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3 years ago

Explain how a service business might help another business.

1 answer:

7 0

A service business could help a business by working for that business aka cleaning maintenance and little things to help the company look good

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Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p

Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0

3 years ago

True or False: Marginal analysis involves comparing the additional or extra benefit derived from consuming an additional unit of

Likurg_2 [28]

Answer:

True

Explanation:

Marginal - the dictionary meaning of such word is additional of anything. Here, in the given case, marginal analysis as per costing is the analysis of each additional revenue from each additional sale or production.

Marginal analysis does not consider fixed cost generally, as that is fixed and don not add on on additional units, within a standard range.

Thus, the statement stated here is True.

7 0

3 years ago

A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $1

Angelina_Jolie [31]

Answer:

earnings per share = $0.67

Explanation:

the earnings per share = stock price / multiple value = $10 / 15 = $0.67

When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.

4 0

3 years ago

Sam's Pizzeria International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an

Alisiya [41]

Answer:

The Adjusted trial balance is

Explanation: Amount in $

Dr. Cr.

Accounts Payable 38,882

Intangible Assets 82,031

Accounts Receivable 56,057

Interest Expense 4,089

Accrued Expense Payable 58,333

Interest Revenue 732

Accumulated Deprecation 337,564

Inventories 27,410

Capital 48,012

Land 32,890

Advertising Expense 63,473

Long Term Debt 230,561

Buildings & Leasehold 203,651

Long Term Note Receivable 12,821

Cash 20,142

Other Assets 42,540

Common Stock 483

Other Long Term Liabilities 64,213

Capital & Retained Earning 418,279

Prepaid and Other Current assets 36,838

Depreciation Expense 39,995

Rent and Utilities Expense 215,720

Equipment 320,520

Total 1,158,177 1,158,177

Note: In absence of sales revenue, other expenses and paid up capital data which is missing in question, the capital and retained earnings are taken as balancing figure

4 0

3 years ago

A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to government regu

Umnica [9.8K]

Answer:

A proprietorship has three important advantages:

(1) It is easily and inexpensively formed,

(2) it is subject to few government regulations, and

(3) it is subject to lower income taxes than are corporations.

However, a proprietorship also has three important limitations:

(1) A proprietor has personal liability for the business' debts.

(2) The life of the business is limited to the life of the individual who created it.

(3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

As all company structures, proprietorships have both advantages and disadvantages. Although the advantages mainly relate to feasibility, the disadvantages are often overlooked. The main disadvantage is the total liability of the owner, which is detrimental if the business faces tough times, which lead to liquidation.

5 0

3 years ago