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3 years ago

Which of the following sections of a business plan comes first but should be written last?

Business

1 answer:

8090 [49]3 years ago

3 0

Answer:

B. Executive Summary

Explanation:

Executive Summary is a business plan which comes first and should be written last

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The following transactions pertain to year 1, the first-year operations of Campbell Company. All inventory was started and compl

nikdorinn [45]

Answer:

a. In the income statement, Net Income = $414

b. In the balance sheet, Total assets = Total equities and liabilities = $5,114.

Explanation:

Note: See the attached excel file for the income statement and a balance sheet.

An income statement prepared in accordance with the generally accepted accounting principles (GAAP) records income when they are earned and expenses when they are uncured.

A balance sheet prepared in accordance with the generally accepted accounting principles (GAAP) shows assets in order of liquidity. In the prepared balance sheet, current asset starting with the ending cash balance which is the most liquid asset asset is shown first followed by others in there order of liquidity.

The fact that Total assets = Total equities and liabilities = $5,114 in the attached excel file shows the balance sheet is accurately prepared.

In the attached excel file, we have:

Sales revenues = Units sold * Unit price = 260 * $13 = $3,380

Ending finished goods Inventory = Total cost of production * ((Units produced - Units sold) / Units produced) = $3,780 * ((360 - 260) / 360) = (100/360)) = $1,050

Below the income statement and the balance sheet in the attached excel file, there is a working that shows the ending cash balance of $4,064.

Download xlsx

3 0

3 years ago

You are considering buying a company using leveraged buyout. The company is projected to have sales of 500 million each year in

worty [1.4K]

Answer:

Net income= $33 million

Explanation:

A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.

The formula for net income is as follows:

Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax

Let first calculate COGS & other administrative expense, depreciation and interest expenses first.

COGS & ADMIN: 500*0.6=300 m

Depreciation: 500*0.05 =25m

Interest expense for the year: 1500 * 0.08= 120m

Now lets substitute values in the formula mentioned above:

Income before taxes: 500m - 300m - 25m - 120m

Income before taxes: 55m

Income after taxes; 55m - 22m (taxes= 55*40%)

Net income= $33 million

4 0

4 years ago

_____________A measurement of how much you like a product or service, ignoring the effects of price and its inconvenience. It co

Fantom [35]

Answer:

consumption utility

Explanation:

Consumption utility is a measurement of how much you like a product or service, ignoring the effects of price and its inconvenience. Consumption means using up of utilities. For example – when we take a glass of water to quench our thirst, we are said to consume water. Whenever we make use of any commodity or service for the satisfaction of our wants, the act is called consumption. Therefore, by consumption we mean the satisfaction of our wants by the use of commodities and services. Economic analysis of household behavior is based on the assumption that people seek the highest level of utility or satisfaction. Individuals are the only judge of their own utility. In general, greater consumption of a good brings higher total utility. However, the additional utility received from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility. The utility-maximizing choice on a consumption budget constraint can be found in several ways .

8 0

4 years ago

The following data relate to product no. 89 of Des Moines Corporation: Direct material standard: 3 square feet at $2.40 per squa

Andru [333]

Answer:

Direct material quantity variance

= (Standard quantity - Actual quantity) x Standard price

= (27,600 - 28,100) x $2.40

= $1,200(A)

Standard quantity

= 3 square feet x 9,200 units

= 27,600 square feet

Explanation:

Direct material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price.

Standard quantity is obtained by multiplying the standard quantity per unit ( 3 square feet) by actual units completed (9,200 units).

4 0

3 years ago

A person who buys the right to use a business name and sell a product within a given territory is called

miskamm [114]

A. A franchise buys the rights to use a name and sell a product or service.

4 0

3 years ago