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spayn [35]
2 years ago
11

b) IKEA is also very "IKEA-centric." For example, the IKEA store itself will be laid out as a maze that requires customers to wa

lk through every department before they reach the checkout stations. This forced path can seem constraining to their customers who naturally are more free spirited than the IKEA management model. Can this spell trouble in the near future, or is the IKEA way a sustainable business model? Why?
Business
1 answer:
Musya8 [376]2 years ago
8 0

Answer:

Explanation:

As long as IKEA is able to deliver value and differentiation via quality, cost, and new designs, then the IKEA way of putting people through the different departments before making checkouts, will not spell trouble.

Furthermore, the movement of people through the different departments will give consumers, exposure to other new products available and it will make them aware of the quality present in other goods. As a result, the consumer and the company will benefit from increased sales.

Here, IKEA has to assure that quality is to be maintained and movement through the different departments should not be high traffic and it will be convenient for people to easily move through to remain interested in visiting the IKEA stores on a regular basis.  

Thus, it will be the right step to build a sustainable business model by IKEA.

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A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $
BARSIC [14]

Answer and Explanation:

Net assets:

Donor without restrictions $488400

Donor with restrictions. $320100

Liabilities:

Notes payable. $250000

Salaries payable. $5000

Deferred revenue $27500

Donated amount in separate entity $10000.

$1101000

Assets:

Cash $738000

Equipment $280000

Receivables $83000

$1101000

Notes:

1. Cash.

Beginning cash $700,000

contributions $210,000

less salaries $80,000

less equipment purchase $50,000

Membership dues $30,000

Add contribution $10,000

Add investment income $13,000

less advertisement pay $2,000

less pay for supplies $93,000

2.Pledges receivable:

$78,000 plus the $5,000 in interest for period

3. Equipment. acquired equipment at $300,000 during the year.

4. Accumulated Depreciation: depreciation amounted to $20,000 for the equipment purchased till date.

5. Deferred Revenue: deferred revenue amounts to 27500 in membership dues since they've only earned 1/12 of the $30000 in exchange transactions.

6. Notes Payable: amount accrued for equipment

7. Salaries Payable: salaries owed employees as at end of the year

9. Donated Amount in Separate Entity. The organization does not hold variance powers for the amount contributed by a donor and so it's a liability

4 0
2 years ago
Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has sem
wlad13 [49]

Answer:

a. 4.89%

b. 5.23%

Explanation:

We use the rate formula which is shown in the attached spreadsheet

Given that,  

Present value = $2,000 × 108.96% = $2,179.20

Future value or Face value = $2,000  

PMT = $2,000 × 5.7% ÷ 2 = $57

NPER = 16 years × 2 = 32 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

a. The yield to maturity of the bond is 4.89%

b. The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

4 0
2 years ago
Preparing Closing Procedures The adjusted trial balance of Parker Corporation, prepared December 31, 2018, contains the followin
Naily [24]

Answer:

Parker Corporation

a) Closing Journal Entries:

General Journal

Description                   Debit         Credit

12/31

Service fees revenue $92,500

Interest income               2,200

Retained earnings         42,700

Income Summary                          $137,400

To close credit items to the Income Summary.

Income Summary      $64,700

Salaries expense                           $41,800

Advertising expense                         4,300

Depreciation expense                       8,700

Income tax expense                         9,900

To close debit items to the Income Summary.

b. T-accounts:

                                      Debit       Credit

Service fees revenue

Adjusted balance                     $92,500

Income Summary      $92,500

Balance                      $0

Interest income

Adjusted balance                       $2,200

Income Summary      $2,200

Balance                      $0

Salaries expense

Adjusted balance    $41,800

Income Summary                     $41,800

Balance                                     $0

Advertising expense

Adjusted balance     $4,300

Income Summary                     $4,300

Balance                                     $0

Depreciation expense

Adjusted balance     8,700

Income Summary                   $8,700

Balance                                   $0

Income tax expense

Adjusted balance    9,900

Income Summary                     $9,900

Balance                                     $0

Retained earnings

Adjusted Balance                     42,700

Income Summary $42,700

Balance                 $0

Explanation:

a) Data:

Parker Corporation

Adjusted Account Balances

                                      Debit       Credit

Service fees revenue              $92,500

Interest income                            2,200

Salaries expense      $41,800

Advertising expense   4,300

Depreciation expense 8,700

Income tax expense    9,900

Retained earnings                     42,700

6 0
2 years ago
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for
Mars2501 [29]

Answer:

1. $3,799,988

2. $3,419,989

Explanation:

1. Semiannual lease payment = $468,683

Total semiannual payments = 5*2 = 10

Incremental borrowing rate = 10%, 5% semiannual

Present value of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 10 periods at 5%

= $468,683 * 8.1078 = $3,799,988.0274 ≈ $3,799,988

2. Semiannual payment on 30.06.2021 = $468,683

Pretax amount of liability on 30.06.2021 = ($ 3,799,988.0274 - $468,683) = $3,331,305.0274

Interest expense for 31.12.2021 = $3,331,305.0274 * 5% = $166,565.25137

Semiannual lease payment on 31.12.2021 = $468,683

Pre tax amount for liability December 31, 2021 = $3,331,305.0274 + $166,565.25137 - $468,683 = $3,029,187.2788

Depreciation on right to use assets for 2021 = ($3,799,988.0274 ÷ 5) * (5/10)= $379,998.80274

Pre tax amount of right to use asset to be reported for 2021 = $3,799,988.0274 - $379,998.80274 = $3,419,989.2247 ≈ $3,419,989

5 0
2 years ago
Selected information from Isadore Bell Corporation's accounting records and financial statements for 2021 is as follows ($ in mi
antiseptic1488 [7]

Answer:

Explanation:

Investing activities are largely related to the acquisition of long term assets that are involved in the financial planning of a company's activities

The items of investing activities in the question are sales of land , purchase of equipment and office equipment . Please note that the gain on disposal of asset is not recognized because it is a  non cash income.

The other items belong to financing activities.

Sales of land -                       45

Equipment acquisition         (18)

Office equipment                 (40)

Net cash flow                         (13)

5 0
2 years ago
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