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2 years ago

Why would a merger reduce costs? Why would a merger increase markups? Why do many mergers fail nonetheless?

1 answer:

5 0

Costs are reduced because they are shared and also one firm may offer services that it has specialised in at reduced costs

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lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou

zhannawk [14.2K]

-0.01 billion is lilliput's a budget deficit. Total expenditure minus total receipts is the fiscal deficit (excluding borrowings). Revenue outlays plus capital outlays are equal to the revenue inflows plus capital inflows minus borrowings.

Despite being primarily utilised by governments, this has a wide range of applications for both people and companies. A government has a budget deficit when it spends more in a given inflows than it brings in the through taxes, for example. As a straightforward illustration, consider a government that receives $10 billion in revenue one year but spends $12 billion, creating a $2 billion budget deficit.

To learn more about budget deficit, click here.

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7 0

1 year ago

The trial balance of Sheridan Company at the end of its fiscal year, August 31, 2017, includes these accounts:

Natalija [7]

Answer:

The answer is $229,200

Explanation:

Cost of sales equals:

Beginning inventory plus purchases minus ending inventory.

Beginning inventory is $23,570

Purchases(net Purchase) is

Purchases $224,020

Add: Freight-In. $9,770

Minus: Purchase Returns. and Allowances. ($5,460)

Net Purchase:. $228,330

ending inventory is $22,700.

Therefore, cost of goods sold is:

$23,570 + $228,330 - $22,700

=$229,200

6 0

3 years ago

A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera

Sedaia [141]

Answer: $670,400

Explanation:

Period costs are not included in direct production and in this instance include:

Variable selling and administrative expense

Fixed manufacturing overhead

Fixed selling and administrative expense

Period costs = (12,000 * 4) + 406,400 + 216,000

= $670,400

7 0

2 years ago

Foley Foods is a mid-size food processing facility that has had a significant increase in business lately. The firm needs to hir

pishuonlain [190]

Answer:

As a government contractor, Foley Food must have an employee assistance program.

Explanation:

For Foley foods to increase its productivity need, the firm will have to hire new workers to assist other workers for the night shift, as to improve its productivity needs.

With not having more workers to assist in the night, their employees are faced with a potential stress and burnout which are synonymous to employee exhaustion and disillusionment. And since the firms had been able to recognize their limitations, its advisable to hire more workers.

8 0

2 years ago

On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock

butalik [34]

Answer:

Taxes on January 1, year 1= $1400

Taxes on Dec 31, year 4=$3300

Explanation:

The question relates to 'EQUITY GRANT', which is some sort of compensation given to somebody, especially/specifically to employees of an entity provided that certain conditions/vesting requirements are satisfied by the employee.

Now on January 1, year 1 Dave has received 1000 shares, for him the shares received is treated is income for Dave, as the shares are being offered against certain services rendered by Dave to RRK corporation. So on January 1 Dave would record income and pay income tax as follows:

Value of shares on Jan 1/ income= 1000×$7

Value of shares on Jan 1/ income= $7000

<em>Lets assume income tax is 20% and marginal tax rate is 10%,</em> the tax consequences would be as follows:

TAXES = $7000×20%

TAXES = $1400

There will be no tax consequences at the vesting date and at the end of year 4 (the date when he sells them) there will be tax consequences of $4000.

At year 4 = 1000×$40

Amount realized= $40000 -$7000

Taxes at marginal rate= $33000×10%

Taxes at marginal rate= $3300

(Note: $7000 is subtracted because it's already present in $40000).

8 0

3 years ago