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2 years ago

Month-end & Year-end process helps to write-off bad debts.

Business

1 answer:

Katyanochek1 [597]2 years ago

5 0

Answer:

False

Explanation:

It is FALSE that Month-end and Year-end process helps to write-off bad debts.

This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.

Bad debt is written off only when a customer invoice is deemed to be uncollectible.

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your grandmother tells you a dollar doesn't go as far as it use to. she says the "purchasing power" of a dollar is much less tha

Ymorist [56]

Back then. A dollar was worth WAYYYYY more than it is now. back then you could buy a lollipop for a like a penny. However as time went on we went through deflation and prices went down

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2 years ago

Medallion Cooling Systems, Inc., has total assets of $9,800,000, EBIT of $2,050,000, and preferred dividends of $201,000 and

Ugo [173]

Answer:

<u>Earnings per share:</u>

0% debt = $5.145 per share

15% debt = $5.487 per share

30% debt = $6.203 per share

45% debt = $6.386 per share

60% debt = $6.570 per share

Explanation:

The earnings per share is the monetary value of how much each share of common stock outstanding has earned. The earnings per share can be calculated by dividing the Net Income attributable to common stockholders by the number of common stock shares outstanding.

Net Income attributable to Common stockholders = Net Income - Preferred stock dividends

Thus, Earnings per share = (Net Income - Preferred stock dividends) / Number of common stock shares outstanding

To calculate Earnings per share at each level of indebtedness, we first need to calculate the net income at each debt level. The net income will change as interest is deducted before calculating net income.

Net Income = EBIT - interest - tax

Total debt = Total assets * weightage of debt in capital structure

Tax = EBT * tax rate

a. 0% debt

Net Income = 2,050,000 - 0 - (2050000 * 0.4) = $1,230,000

Earnings per share = (1230000 - 201000) / 200000 = $5.145 per share

b. 15% debt

Total debt = 9,800,000 * 0.15 = 1470000

EBT = 2,050,000 - (1470000 * 0.078) = $1935340

Net Income = 1935340 - ( 1935340 * 0.4) = $1161204

Earnings per share = (1161204 - 201000) / 175000 = $5.487 per share

c. 30% debt

Total debt = 9,800,000 * 0.30 = 2940000

EBT = 2050000 - (2940000 * 0.091) = $1782460

Net Income = 1782460 - (1782460 * 0.4) = $1069476

Earnings per share = (1069476 - 201000) / 140000 = $6.203 per share

d. 45% debt

Total debt = 9,800,000 * 0.45 = 4410000

EBT = 2050000 - (4410000 * 0.121) = $1516390

Net Income = 1516390 - (1516390 * 0.4) = $909834

Earnings per share = (909834 - 201000) / 111000 = $6.386 per share

e. 60% debt

Total debt = 9,800,000 * 0.60 = 5880000

EBT = 2050000 - (5880000 * 0.152) = $1156240

Net Income = 1156240 - (1156240 * 0.4) = $693744

Earnings per share = (693744 - 201000) / 75000 = $6.570 per share

6 0

3 years ago

Manufacturers use several different production processes to create goods and services.

lys-0071 [83]

Answer:

A) true

Explanation:

Manufacturing involves converting raw materials into useful finished product. Manufacturers engage different production processes in creation of goods/ services, and the choice of process to use is dependent on the kind of products/ goods that were to be produced. In choosing process or production methods desires of the market as well as available resources and volumes need to be put into consideration. For instance, in steel manufacturing, the process is one that requires a continuous process, therefore, CONTINUOUS PROCESS is used. A production plant involving working together of both workers and robot works together in assembling if automobiles requires a "ASSEMBLY PROCESS"

3 0

3 years ago

Explain why it is important for Costco’s corporate accounting, marketing, and operations management business units to access and

Dafna1 [17]

Answer:

Every Business Unit in Costco needs to have access to the Data

Explanation:

Costco Wholesale Company runs a network of customers-only retail stores, doing business as Costco, an American multinational company.

The details must be available to each business unit in Costco.

For example, The accounting department needs to know the buy-and-sell information. To order to make good use of this commodity in its marketing strategy, the marketing professionals need to learn the quality of a particular product.

To insure the inventory management is completed, an operations manager must have access to the data.

8 0

3 years ago

Match the following definitons with appropriate options given in below:

Len [333]

Answer:

1. A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.

-Demand Curve

2. The amount of a good that buyers are willing and able to purchase at a given price.

-Quantity Demanded

3. The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.

-Law of Demand

4. A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.

-Demand Schedule

Explanation:

5 0

3 years ago