Answer:
C. Pro forma statements
Explanation:
Pro forma financial statements are similar to historical financial statements in appearance and use, except that they focus on the future instead of the past and are based upon assumptions rather than hard fact.
Pro forma statements allow management to exercise a certain amount of creativity and flexibility.
It helps management in decision making.
Answer:
A. the company's gross margin is $100,000, while its contribution margin is $60,000.
Explanation:
Under the gross margin, the net income would be
= Sales - cost of goods sold
= $300,000 - $200,000
= $100,000
Under the contribution margin, the net income would be
= Sales - cost of goods sold - variable operating expenses
= $300,000 - $200,000 - $40,000
= $60,000
Under the gross margin, no operating expenses would be considered whereas for contribution margin, only the variable operating expenses is considered
Answer:
The correct answer is letter "E": are often driven by such strategic objectives as to expand a company's geographic coverage or extend its business into a new product categories.
Explanation:
A merger is a combination of two companies, usually by mutual agreement. Mergers are not exactly the same as acquisitions. In the <em>acquisition</em>, one company buys and subsumes another company, leaving only the purchaser in place. In most mergers, the two companies merge to form a completely new company.
Frequently, <em>mergers and acquisitions are conducted so that the operations of firms can be broaden and new opportunities can be taken advantage of in the new markets.</em>
Answer:
The manufacturing margin is $460000
Explanation:
Margin is the difference between a company revenue (sales) and the cost of manufacturing. Manufacturing margin is the profit a manufacturer gets from sales of goods or services. Fixed manufacturing costs, variable selling and administrative expenses and Fixed selling and administrative expenses are not used when calculating the manufacturing margin.
Manufacturing margin = Sales - Variable costs of goods sold = $900000 - $440000 = $460000
The manufacturing margin is $460000
Answer:
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