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2 years ago

1. What recommendations would you make to Jim to help him improve the financial

Business

1 answer:

Basile [38]2 years ago

6 0

Answer:

Hello your question is incomplete below is the complete question

Jim Connor is the owner of Wave Riders, a surf shop located in West Palm Beach, Florida. Jim has just received his end of the year financial statements from his accountant. When he sees his gross and net income he is dismayed. With almost $250,000 in gross profit he just doesn’t understand why he is always short on cash to pay his employees and suppliers. One of his largest suppliers of surf boards notified him just last month that they would no longer extend him credit and he would have to pre-pay all of his orders. He puts a call into his accountant to set up a meeting with her to discuss the financial health of his business

Average inventory turnover ratio : Wave riders = 2.5 , Industry = 6.85 ( as calculated )

answer: The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more

Explanation:

The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more, this is because The Average inventory turnover ratio for Waveriders is lower than the Industry's Average inventory turnover ratio. and this is caused by inadequate inventory management ( overstocking or low sales ) and this is affecting The financials of Waveriders

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In some instances accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit in

Zepler [3.9K]

Answer:

1 $12.80

2 $16.10

3 $13.00

4 $9.20

5 $15.90

Explanation:

The unit value of inventory is to be valued the lower of cost price and net realizable value.

Cost is the original purchase price while the net realizable value is the estimated selling price less of costs to complete and costs to sell as computed in the attached file.

Download xlsx

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2 years ago

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high pric

ArbitrLikvidat [17]

Answer:

C) competition

Explanation:

ACE's new computer is in the introduction stage of the product life cycle. It is a very new and different product and therefore ACE can charge a high price until the growth stage begins. During the growth stage, the product's demand will increase and it will become a normal available product, that will attract several competitors into the market. Competitors might introduce newer versions of the product which are slightly different, but specially the price will be a decisive factor. As more competitors enter the market, the price will fall.

6 0

2 years ago

An individual works downtown and pays $600 per month in rent for an apartment located 10 miles from her office. She has calculat

zmey [24]

Answer:

Option (B) is correct.

Explanation:

For a 20 workday month,

cost of gas and productivity = $4 per day

cost of commuting = cost of gas and productivity × 20 workday month

= $4 × 20

= $80.

The total rent he is paying currently is $600 per month that does not include the commuting cost.

Hence, the individual must willing to pay a total of:

= Total rent + Cost of commuting

= $600 + $80

= $680 for an apartment downtown.

Thus, the total amount to be paid willingly is $680.

8 0

2 years ago

FB Corp. prepares its financial statements in accordance with IFRS. FB acquired 100% of the outstanding common stock of Skarlet,

jeka57 [31]

Answer:

See the attached file below.

Explanation:

There's not much difference between IFRS and U.S. GAAP when it comes to business acquisition.

In accordance with IFRS, FB Corp. would do the following procedure:

(1) record the acquired assets and liabilities at fair value

(2) expense any acquisition related costs such as legal fees

(3) ignore post acquisition costs when determining the values at acquisition

(4) calculate goodwill as the difference between the net assets and the acquisition price less legal fees.

7 0

2 years ago

Read 2 more answers

Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 5 years ago. The bond cu

Brrunno [24]

Answer:

a) Total book value = $85,000,000

b)Market value of debt = $27,650,000

c)After tax cost of debt = 2.74%

Explanation:

As per the data given in the question,

a) Debt = $50,000,000

Zero coupon bond = $35,000,000

Total book value = $50,000,000+$35,000,000

= $85,000,000

b) Market value of debt = $50,000,000×104%

=$52,000,000

Market value of zero coupon bond = $35,000,000×79%

=$27,650,000

Total market value = $52,000,000+$27,650,000

= $79,650,000

c) Market value weights for debt = 0.65

Market value weights for Zero coupon bond = 0.35

After tax cost for Debt ( By using financial calculator )

( 0.01857 ×2 × (1-24%)) = 2.82%

After tax cost for Zero coupon bond ( By using financial calculator )

( 0.01698 ×2 × (1-24%)) = 2.58%

Weighted cost for debt ( Weight × Cost )= 1.84%

Weighted cost for zero coupon bond ( Weight × Cost ) = 0.90%

After tax cost of debt = 1.84%+0.90%

=2.74%

8 0

2 years ago