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Elena-2011 [213]
2 years ago
12

Diego purchased a new black jacket through Amazon. When it arrived, he was disappointed when he opened up the package to discove

r that the black jacket he thought he ordered was actually dark navy blue.Then he tried on the jacket and realized that the sleeves were too long for his arms. What did Diego probably just experience about his purchase
Business
1 answer:
timama [110]2 years ago
6 0

Answer:

The correct answer is letter "A": cognitive dissonance.

Explanation:

Social psychologist Leon Festinger (1919-1989) described cognitive dissonance as the situation in which individuals feel discomfort as the result of unmatched expectations and the events that took place. According to Festinger, individuals constantly look for consistency to confirm their beliefs are true. Besides, people tend to avoid inconsistency because they lead to disharmony.

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The Nantell Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment
gtnhenbr [62]

Answer:

D

Explanation:

Nantell's operating income (EBIT) will increase., because now the company will record lower depreciation expense in the income statement due to increase in the life from 5 to 7 taken for the depreciation purposes. So decline in depreciation will result in higher EBIT.

a. is wrong as lower depreciation means higher net income.

b. is wrong as tax liability will not get impacted as tax will follows old method of depreciation.

c. is incorrect as depreciation is non cash expense thus does not impact cash position and tax has already be on the earlier method.

e. is incorrect as increase in EBIT will result in higher taxable income.

hence option D is the only correct option

4 0
2 years ago
Cliff Company traded in an old truck for a new one. The old truck had a cost of $130,000 and accumulated depreciation of $65,000
RSB [31]

Answer:

the recorded value of the new truck is $135,000

Explanation:

The computation of the recorded value of the new truck is given below;

In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000

Hence, the recorded value of the new truck is $135,000

The same would be considered and relevant

And all other values are to be ignored

4 0
1 year ago
During Burns Company's first year of operations, credit sales totaled $166,000 and collections on credit sales totaled $118,000.
marusya05 [52]

Answer:

1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense.

1  

Db Bad debt expense_______ 3320  

Cr Allowance for bad debt_________________  3320

 

2  

Db Allowance for  bad debt__ 430  

Cr Account Recevaible_____________________  430

2. Show the year-end balance sheet presentation for accounts receivable.

Account receivable__________47570  

Net account receivable_______44250

Explanation:

Credit sales 166000  

Credir sales 118000  

 

Bad debt losses 2%  

 

Writte off 430  

 

Allowance 3320  

 

 

1  

Db Bad debt expense_______ 3320  

Cr Allowance for bad debt_________________  3320

 

2  

Db Allowance for  bad debt__ 430  

Cr Account Recevaible_____________________  430

 

 

Year end balance___________48000  

Cr Account Recevaible_________430  

Account receivable__________47570  

Allownace for bad debts_______3320  

Net account receivable_______44250  

5 0
2 years ago
6. Harris Corporation is an all-equity firm with 100 million shares outstanding. Harris has $250 million in cash and expects fut
maria [59]

Answer:

Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million

Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock

If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.

If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.

The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.

3 0
2 years ago
Which of the following tasks in the AFIstrategy framework involves putting the formulated strategy into practice through organiz
ahrayia [7]

Answer:

The answer is B.strategy implementation

Explanation:

Implementation involves putting the formulated strategy ; organizational design, structure, culture, control

3 0
2 years ago
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