Answer: false
Explanation: The first statement in the given case is correct as accounting is based on determining net income. Whereas, the subject matter of finance is related to increase the value of the company and the value of its shareholders wealth.
Finance does not only focus on net income but it also focuses on other aspects like liquidity, future potential etc.
Hence the given statement is false.
Explanation:
Companies can increase wages for a number of reasons. The most common reason for raising wages is an increase in the minimum wage. The federal and state governments have the power to increase the minimum wage. Consumer goods companies are also known for making incremental wage increases for their workers.
Answer:
Direct marketing.
Explanation:
This issue is related to the marketing communication method called direct marketing or relationship marketing.
Direct marketing can be defined as a set of strategic actions whose main objectives are customer loyalty through the establishment of a more personalized relationship between the customer and the organization. Relationship marketing seeks to get to know its customers in depth so that it can always offer a product and service directed to their needs, through some actions, such as those carried out by Harold, who seeks to know his customers and tastes in order to offer the ideal product to your wants and needs.
Answer:
b. $150,500
Explanation:
debit/capital = $185000/$610000
= 30%
target debt is 55%
debt/capital = 0.55
let the new debt be Y
Y/$610,000 = 0.55
Y = $335,500
excess debt need by company = $335500 - $185000
= $150500
Therefore, The debt that the company must add to achieve the target debt to capital ratio is $150500.
Answer:
The company must borrow $144000
Explanation:
The required ending cash balance is the balance that the company should have at the end of the period. The decision to borrow will be taken by comparing the actual ending balance with the required ending balance. If the actual ending balance is less than the required ending balance, only then the company needs to borrow to reach the desired level of ending balance.
The actual ending balance can be calculated as,
Actual Ending balance = Opening Balance + Cash receipts - Cash disbursements
Actual Ending balance = 126000 + 870000 - 1020000
Actual Ending balance = - $24000
Difference = -24000 - 120000 = - $144000
As the ending cash balance is negative ( - $24000) which means that there is a shortage of cash and the company does not have enough cash to meet the disbursements for the period and maintain the required ending cash balance. The negative sign in difference indicates shortage and the need for borrowing. The company should borrow for the amount of difference. Thus, the company should borrow $144000
