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horrorfan [7]
2 years ago
6

A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital

that it must raise. Which of the following conditions would cause the AFN to increase?(A) The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.(B) The company increases its dividend payout ratio.(C) The company begins to pay employees monthly rather than weekly.(D) The company’s profit margin increases.(E) The company decides to stop taking discounts on purchased materials.
Business
1 answer:
Mazyrski [523]2 years ago
5 0

Answer:

(B) The company increases its dividend payout ratio.

Explanation:

AFN is Additional Funds needed.

For this Additional Funds needed = Expected or projected increase in assets - Expected increase in liabilities - Expected increase in retained earnings.

As with the payment of dividend the retained earnings tend to reduce, therefore with increase in dividend payout ratio there will be decrease in expected increase in retained earnings.

Which will further increase the AFN.

Therefore, the correct answer is

(B) The company increases its dividend payout ratio.

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Geoff hesitated as he read the fast food menu, unsure whether he should supersize his order of delicious golden French fries. Do
erma4kov [3.2K]

Answer:

Geoff's target service level is 0.76

Explanation:

Doing so would expand his expense from $0.99 to $1.59 and could very well give him the sustenance he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his cheeseburger and the typical measure of fries, he would essentially discard the additional ones. In any case, on the off chance that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would probably require two pieces of candy, which sold for $0.95 each.

5 0
2 years ago
Read 2 more answers
A contractor figured materials for a job would cost $2,415. He also estimated labor for the same job would cost $1,832. If he ad
tatuchka [14]

Answer:

=5, 011.46

Explanation:

cost of materials : $ 2,415

cost of labor:         $ 1,832

Total cost; ( $ 2,415+$ 1,832)= $ 4,247

Add 18 percent mark-up = 4247*1.18

     =5, 011.46

3 0
2 years ago
Read 2 more answers
The following information was taken from the accounting records of Gorky Corporation for the year ended December 31, Year 1: Cas
Romashka-Z-Leto [24]

Answer:

Cash flow generated from financing activities: 5,200,000

Explanation:

Financing activities are the cash outflow and inflow from the company's debt and equity. Take and repayment of debt, interest on debt and dividend yield will be included in this section:

Cash received from issuance of notes payable    8,000,000

Dividends paid on Gorky common stock                (800,000)

Repayment of notes payable                           <u>     (4,000,000)   </u>

Cash flow generated from financing activities: 5,200,000

The machinery and planyt building are not financing activities. So we ignore them.

8 0
2 years ago
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as a.period costs
Dima020 [189]

Answer:

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.

Explanation:

Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.

Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.

Direct costs includes the costs of direct 'labor', materials and commissions.

8 0
2 years ago
Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning
miv72 [106K]

Answer:

B). targeting strategy and marketing mix

Explanation:

This are the options for the question;

a. locational excellence strategy.

b. targeting strategy and the marketing mix.

c. supply chain management.

d. operational excellence strategy.

e. strategic business unit control.

From the question we were informed that Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink.

In this case this positioning reflects Pepsi's careful implementation of targeting strategy and marketing mix.

This is because in concept of finance, targeting strategy is used in market segmentation.this is selection of product that will sell very well for each segment of consumers.

Pepsi also utilize the marketing mix strategy which is a tool that helps to control the target market, it is used in marketing to control Product, Price, Place and Promotion for more demand for their products.

7 0
2 years ago
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