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Rus_ich [418]
2 years ago
3

: morgan manufacturing, inc., holds a shareholders' meeting. corporate business matters are presented at the meeting in the form

of
Business
1 answer:
Mariana [72]2 years ago
5 0
The answer to this question is <span> resolutions.
In business terms, the word resolutions refers to the statement that written directly by the board of directors that authorizes which actions should be taken and which officers are responsible for those actions.  These authorization usually made in a high-detail before entering operation period.</span>
You might be interested in
Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities. Because of limited resources,
alexandr402 [8]

Answer:

- Net present value of each project:

Project A:$37,193

Project B:$4,629

=> Project A should be chosen based on NPV approach as its NPV is higher.

- Internal rate of return of each project:

Project A: 20%

Project B: 12%

=>Project A should be chosen based on IRR approach as its IRR is higher

Explanation:

- Net present value calculation:

NPV for Project A: -111,000 + (37,116/0.08) x [1-1.08^(-5)] = $37,193

NPV for Project B: -43,000 + (11,929/0.08) x [1-1.08^(-5)] = $4,629.

- Internal rate of return approach;

IRR is the discount rate that bring NPV of project's cash flows to 0. Thus:

IRR for project A: -111,000 + (37,116/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 20%

IRR for project B: -43,000 + (11,929/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 12%

6 0
2 years ago
Which of the following statements is CORRECT? a. The advantage of the basic earning power ratio (BEP) over the return on total a
leonid [27]

Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes

Explanation:

a. This is correct.

The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.

b. This is incorrect.

Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.

c. This is incorrect.

The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.

d. This is incorrect.

We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.

3 0
2 years ago
When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elastici
Simora [160]

Answer:

The cross elasticity of demand is zero

Explanation:

Cross elasticity of demand measures the percentage change in the quantity demand of a product occasioned by a change in the price of another but related commodity.

If the the commodities are complements, the cross of elasticity of demand between them would be  negative. his implies an increase(decrease) in the price of one would lead to a decrease(increase) in the demand of the other.

If the the commodities are substitutes, the cross elasticity  of demand between them would be  positive. This implies an increase(decrease) in the price of one would lead to a increase (decrease) in the quantity demand of the other.

Where the cross elasticity of demand is zero, this implies that the goods are not in any way related. This implies that a change in the price of one would produce no change in the quantity demand of the other.

3 0
2 years ago
Each month, Jackie budgets $1640 for fixed expenses, $1320 for living expenses, and $260 for annual expenses. Her annual net inc
dsp73

Answer:

d. it is balanced.

Explanation:

A budget is defined as the amount of money that is set aside for some future purpose. It is a way to effectively manage funds and avoids wastage. When one is going out of their budget they know is is an unallocated cost and this will lead to unbalanced funding for needs.

In this scenario the total budget of Jackie is

Monthly budget= fixed expenses+ living expenses+ annual expense

Monthly budget = 1,640+ 1,320+ 260

Monthly budget= $3,220

Yearly budget= monthly budget* 12

Yearly budget= 3,220* 12= $38,640

This is a perfect balance with her annual net income.

5 0
2 years ago
The before-tax income for Lonnie Holdiman Co. for 2020 was $101,000 and $77,400 for 2021. However, the accountant noted that the
lozanna [386]

Answer:

Lonnie Holdiman Co.

A Schedule showing the determination of the corrected income before taxes for 2020 and 2021:

                                                                             2020         2021

Before-tax income                                           $101,000    $77,400

1. Excess Sales revenue                                    (38,200)    38,200

2. December 31, 2020 Inventory understated   8,640      (8,640)

3. Amortized bonds discount not expensed      (1,776)       (1,901)

4. Equipment repairs not expensed                  (8,500)     (9,400)

5. Overstated depreciation from capitalized

   Equipment repairs                                             850           940

Corrected income before taxes                    $62,014   $96,599

Explanation:

a) Data and Calculations:

Before-tax income for 2020 = $101,000

Before-tax income for 2021 = $77,400

1. 2020 Sales Revenue $38,200; 2021 Sales Revenue $38,200

2. 2020 Understated inventory $8,640; 2021 Understated inventory $8,640

3. 2020 Unstated bonds interest expense $1,776

2021 Unstated bonds interest expense $1,901

4. 2020 Unstated equipment repairs $8,500 Overstated Equipment account $8,500

2021 Unstated equipment repairs $9,400 Overstated Equipment account $9,400

2020 Overstated Depreciation expense $850

2021 Overstated Depreciation expense $940.

Bonds Calculations:

Bonds outstanding value:

Bond's face value =        $250,000

Discount =                            15,000

Proceeds from bonds = $235,000

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount = $1,450

December 31, 2017:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount =          $1,450 ($16,450 - $15,000)

Outstanding value = $236,450 ($235,000 + 1,450)

December 31, 2018:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,552 ($236,450 * 7%)

Amortized discount =          $1,552 ($16,552 - $15,000)

Outstanding value = $238,002 ($236,450 + 1,552)

December 31, 2019:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,660 ($238,002 * 7%)

Amortized discount =          $1,660 ($16,660 - $15,000)

Outstanding value = $239,662 ($238,002 + 1,660)

December 31, 2020:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,776 ($239,662 * 7%)

Amortized discount =          $1,776 ($16,776 - $15,000)

Outstanding value = $241,438 ($239,662 + 1,776)

December 31, 2021:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,901 ($241,438 * 7%)

Amortized discount =           $1,901 ($16,901 - $15,000)

Outstanding value = $243,339 ($241,438 + 1,901)

Depreciation on Capitalized Equipment Repairs:  

Excess depreciation expense:

2020 = $850 ($8,500 * 10%)

2021 = $940 ($9,400 * 10%)          

6 0
2 years ago
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