Answer:
Answer is explained and solved in the explanation section below.
Explanation:
Data Given:
First we need to clearly extract the data from the question.
Sales of the year = 5000000
Increase in Sales (%) = 20%
Profit Margin = 4%
Retention Ratio = 100%
Dividend Payout = 0
1. Increase in Assets necessary to support increase in Sales = Increase in Sales x total Assets = 20% x 3000000 = 600000
2. Increase in Liabilities necessary to support increase in Sales = Increase in Sales x Total Liabilities Accounts payable + Accrued Liabilities + other payables = 20% x 500000 = 100000
3. Net Income = 5000000 x (1 + 0.20) x 4% = 240,000
So Addition of Retained Earnings = 100% = 240,000
4. AFN = Increase in Assets - Increase in Liabilities - Increase in Retained Earnings = 600000 - 100000 - 240000 = 260000
Under this scenario, the company would have higher level of retained earnings which would reduce the amount of additional funds needed.
Answer:
C) $96,236.09
Explanation:
To solve this problem, we will use the Present Value of an annuity due formula. The annuity is due because the withdrawals are made at the beginning of each period.
The formula is:
Where:
P = Present value of the annuity
A = Value of each annuity payment
i = Interest rate
n = number of periods
Now, we simply plug the amounts into the formula:
The correct matches are as follows:
<span>A.Pure competition
</span>Fast food restaurants
<span>
B.Near monopoly
</span><span>Computer operating systems
</span><span>
C.Monopolistic competition
</span><span>Online auctioning
</span><span>
D.Oligopoly
</span><span>Car makers
Hope this answers the question. Have a nice day.</span>
Answer:
Letter D is correct. <u>Partnership.</u>
Explanation:
A partnership can be defined as a formal arrangement between two or more individuals whose main objectives are to share the responsibilities of managing and controlling a business and to share profits equally.
The partnership agreement can occur in any enterprise, such as between companies, governments, individuals, etc.
It is important that there is a written partnership contract that determines what the responsibilities, rights and duties of each party are, and that all operations and activities are clearly defined, so that losses, profits and management are shared by all members of the partnership in a well-defined contract.