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3 years ago

How are distribution and selling both connected?

1 answer:

4 0

Answer:Manufacturers produce or make products. They typically sell them to wholesalers or distributors that have expertise in getting products to retailers. Retailers then hold inventory and market the goods to consumers that purchase them for personal or family consumption.

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The Goodsmith Charitable Foundation, which is tax-exempt, issued debt last year at 8 percent to help finance a new playground fa

NeTakaya

Answer:

10%

Explanation:

Given that,

Interest at last year debt = 8%

Current year cost of debt = 25% higher

Firms paid for debt last year = 10%

Firms paid for debt in current year = 12.50%

Kd - cost of debt

Yield = Interest at last year debt × (1 + increase in cost of debt)

= 8% × (1 + 0.25)

= 8% × 1.25

= 10%

Kd = Yield (1 – T)

Kd = 10% (1 – 0)

= 10% (1)

= 10%

Therefore, after tax cost of debt would be 10%.

8 0

4 years ago

ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following

lara [203]

Answer:

a. ROI = income / Assets

Book Value Current Value

Software Division 0.175 0.13

Consulting Division 0.164 0.182

Venture Capital Division 0.093 0.088

Workings:

i. Book value

Software Division = 12,250/70,000=0.175

Consulting Division = 16,400/100,000=0.164

Venture Capital Division = 56,730/610,000 =0.093

ii. Current value

Software Division = 11,700/90,000=0.13

Consulting Division = 20,020/110,000=0.182

Venture Capital Division= 51,920/ 590,000=0.088

b. Residual income = Income - {Asset x Return on capital 12% }

Book Value Current Value

Software Division 3850 900

Consulting Division 4400 6820

Venture Capital Division -16470 -18880

Workings:

i. Book value

Software Division = 12,250-(70,000*12%)=3850

Consulting Division = 16,400-(100,000*12%)=4400

Venture Capital Division = 56,730-(610,000*12%) =-16470

ii. Current value

Software Division = 11,700-(90,000*12%)=900

Consulting Division = 20,020-(110,000*12%)=6820

Venture Capital Division= 51,920-(590,000*12%)=-18880

c. Economic Value Added ( EVA ) = Net Income After Tax - ( Amount of Capital x Weighted Average Cost of Capital [WACC] )

C. Software Division

(Value Base)

Book Current

Sales 100,000 100,000

Income 12,250 11,700

Assets 70,000 90,000

Liabilities 10,000 10,000

Capital invested 60,000 80,000

(Asset - Liabilities)

Tax on Income(30%) 3675 3510

Income after Tax 8,575 8,190

(Income - Tax on

income) (A)

Capital invested 6,000 8,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,575 190

Consulting Division

(Value Base)

Book Current

Sales 200,000 200,000

Income 16,400 20,020

Assets 100,000 110,000

Liabilities 14,000 14,000

Capital invested 86,000 96,000

(Asset - Liabilities)

Tax on Income(30%) 4920 6006

Income after Tax 11,480 14,014

(Income - Tax on

income) (A)

Capital invested 8,600 9,600

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,880 4,414

Venture Capital Division

(Value Base)

Book Current

Sales 800,000 800,000

Income 56,730 51,920

Assets 610,000 590,000

Liabilities 40,000 40,000

Capital invested 570,000 550,000

(Asset - Liabilities)

Tax on Income(30%) 17019 15576

Income after Tax 39,711 36,344

(Income - Tax on

income) (A)

Capital invested 57,000 55,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) -17,289 -18,656

8 0

3 years ago

Wei is trying to complete her project by the deadline. At her desk, she hears the muffled but persistent noises of jackhammering

alexandr402 [8]

Answer:

B. False

Explanation:

Remember, the question is whether the ringtone is likely to be more stressful to Wei than the jackhammering.

Obviously she's distracted by the ringtone from her smartphone, however what is more stressful (irritating) to Wei is the sound from the jackhammer.

Therefore, the ringtone is not more stressful than the jackhammering.

4 0

3 years ago

The law that regulates the offering and sale of purely intrastate securities is known as the:

qaws [65]

Blue-Sky Laws

_Danielle_

4 0

3 years ago

The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except

garik1379 [7]

Answer:

A Schedule Summarizing Operating, Investing, and Financing Cash Flows, using the T-account approach:

Operating Investing Financing

Debit Credit Debit Credit Debit Credit

1. Equipment $71,000

2. Note Payable $13,500

3. Common Stock $20,000

4. Cash Dividends $22,800

5. Accounts Payable $2,700

6. Income Tax Expense $4,000

7. Interest Expense $3,000

8. Net Income $53,720

9. Depreciation $21,280

10. Tax & Interest $7,000

11. Accts receivable $13,500

12. Inventory $6,750

13. Salaries Payable $1,350

Total inflows/

outflows $83,350 ($26,950) ($71,000) $20,000 ($39,300)

Net cash from $56,400 ($71,000) ($19,300)

Operating activities $56,400

Investment activities ($71,000)

Financing activities ($19,300)

Net cash flows ($33,900)

Explanation:

a) Data and Calculations:

1. Current Year Prior Year

Balance Sheet

Assets

Cash $ 78,900 $ 99,300

Accounts Receivable 108,000 94,500

Merchandise Inventory 81,000 87,750

Property and Equipment 152,000 81,000

Less:

Accumulated Depreciation (43,280) (22,000)

Total Assets $ 376,620 $ 340,550

Liabilities:

Accounts Payable $ 13,500 $ 16,200

Salaries and Wages Payable 2,700 1,350

Notes Payable, Long-Term 67,500 81,000

Stockholders’ Equity:

Common Stock 128,000 108,000

Retained Earnings 164,920 134,000

Total Liabilities &

Stockholders’ Equity $ 376,620 $ 340,550

2. Current Year Income Statement

Sales $ 340,000

Cost of Goods Sold 180,000

Depreciation Expense 21,280

Other Expenses 85,000

Net income $ 53,720

3. The Wickersham Brothers Inc.'s Statement of Cash Flows is one of the three main financial statements that the management of Wickersham Brothers Inc. must prepare and present to the stockholders of the company and the general public. It details the Wickersham's cash flows under the operating activities, investing activities, and financing activities sections.

4 0

4 years ago