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2 years ago

Demers Inc. reported the following data:

Business

1 answer:

elena-s [515]2 years ago

7 0

Answer:

Cash Flows from Operating Activities is 555.050

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 490.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 52.000

- Gain on disposal of equipment (7.000)

+ Decrease in accounts receivable 32.400

- Decrease in accounts payable (12.350)

Net cash 555.050

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. Which statement in the given text points to George being an ethical leader? George had been working as a manager in a company

SIZIF [17.4K]

Answer:

His company had been going through a lot of transition in the past year because they wanted to improve their public image.

George made sure that the restaurant served all the dishes that were popular in the locality.

Explanation:

An "ethical leader" is concerned about the beliefs and values of people in the society. In order to adapt to locality, George has to consider the company's virtues by improving their public image. This will make their restaurants desirable. This can also be done if the restaurants will make sure <u>to know what the popular dishes are in the local area.</u> For example, if the people prefer "halal" food, then they'll be preparing halal foods as well. This is an ethical way of respecting the people's preference in the area.

So, this explains the answers.

6 0

2 years ago

Suppose a firm is producing in the long run. When it produces 4,000 units of output, its total cost is $8,000. When it produces

Scilla [17]

Answer:

increasing then decreasing

Explanation:

production level total cost average total cost

4,000 $8,000 $2.00

4,200 $8,200 $1.95

4,400 $8,800 $2.00

Returns to scale measure the change in productivity, or how much input is needed to produce a unit of output.

increasing returns to scale: output increases in a greater proportion than inputs
constant returns to scale: output increases in the same proportion as inputs
decreasing returns to scale: output increases in a lower proportion than inputs

Since first the average total cost decreased, total output increased in a greater proportion than inputs ⇒ increasing returns of scale. But then the situation reversed and total output increased in a lower proportion than inputs ⇒ decreasing returns of scale.

4 0

2 years ago

Brand 123 has customers in many countries purchasing its bicycles, but its managers are unsure if the brand is truly a "global b

Inga [223]

Answer: d. 30%

Explanation:

Global brands are companies that have achieved international success such that they are recognised in many other countries apart from their own and have many customers in other countries as well.

However, simply being known abroad does not classify a company as a global brand. The company must be generating sufficient revenue from their operations outside as a proportion of their total revenue their home country with sufficient meaning at least 30% of their revenue.

6 0

2 years ago

Divided Furniture Inc. has 11,000 bonds outstanding with a market price of $104 per bond. The firm also has 35,000 preferred sha

mote1985 [20]

Answer:

Market Value of equity = Price of equity*Number of shares outstanding

Market Value of equity = 36*45000

Market Value of equity = 1620000

Market Value of Bond = Par value*bonds outstanding*%age of par

Market Value of Bond = 100*11000*1.04

Market Value of Bond = 1144000

Market Value of Bond of Preferred equity=Price*Number of shares outstanding

Market Value of Bond of Preferred equity=52*35000

Market Value of Bond of Preferred equity = 1820000

Market Value of firm = Market Value of Equity + Market Value of Bond+ Market Value of Preferred equity

Market Value of firm = 1620000+1144000+1820000

Market Value of firm = 4584000

Weight of equity = Market Value of Equity/Market Value of firm

Weight of equity = 1620000/4584000

Weight of equity = 0.3534

Weight of debt = Market Value of Bond/Market Value of firm

Weight of debt = 1144000/4584000

Weight of debt = 0.2496

Weight of preferred equity = Market Value of preferred equity/Market Value of firm

Weight of preferred equity = 1820000/4584000

Weight of preferred equity =0.397

Cost of equity

Price= Dividend in 1 year/(cost of equity - growth rate)

36 = 2.2/ (Cost of equity - 0.04)

Cost of equity% = 10.11

After tax cost of debt = cost of debt*(1-tax rate)

After tax cost of debt = 8*(1-0.4)

After tax cost of debt = 4.8

Cost of preferred equity

Cost of preferred equity = Preferred dividend/price*100

Cost of preferred equity = 2.2/(52)*100

Cost of preferred equity = 4.23

WACC = After tax cost of debt*W(D)+cost of equity*W(E)+Cost of preferred equity*W(PE)

WACC = 4.8*0.2496+10.11*0.3534+4.23*0.397

WACC = 6.45%

7 0

2 years ago

On january 31, jean consulting company receives a bill for that month’s utilities in the amount of $500. jean sets it aside beca

Licemer1 [7]

When a company obtains a utility bill but will not pay it right away, it should debit utilities expense and credit accounts payable.

The accounting equation, Assets = Liabilities + Owners Equity means that the total assets of the business are all the time equal to the total liabilities plus the total equity of the business. This is true at any time and applies to each matter.

In this case the balance sheet or accounts payable have an increased of $500, and the income statement has a utilities expense of $500. The expense decreases the net income, retained earnings, and therefore owners’ equity in the business.

7 0

2 years ago