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dimaraw [331]
2 years ago
12

All businesses are involved in three types of activities—financing, investing, and operating. Listed below are the names and des

criptions of companies in several different industries.Abitibi Consolidated Inc.—manufacturer and marketer of newsprintCal State–Northridge Stdt Union—university student unionOracle Corporation—computer software developer and retailerSportsco Investments—owner of the Vancouver Canucks hockey clubGrant Thornton LLP—professional accounting and business advisory firmSouthwest Airlines—discount airlineFor each of the above companies, provide examples of a financing activity, an investing activity, and an operating activity that the company likely engages in. Which of the activities that you identified in part (a) are common to most businesses? Which activities are not?
Business
1 answer:
Maslowich2 years ago
6 0

Answer:

Abitibi Consolidated Inc.—manufacturer and marketer of newsprint

operating: payment of utilities

investing: purchase of factory equipment

financing: issue of shares

Cal State–Northridge Stdt Union—university student union

operating: wages to the employees

investing:  purchase of a building

financing:  signing of a promissory note

Oracle Corporation—computer software developer and retailer

operating: delevopment of software

investing:   purchase of computer equipmnet

financing:  dividends declared

Sportsco Investments—owner of the Vancouver Canucks hockey club

operating: ticket sales

investing: improvement on the stadium

financing: bank loan

Grant Thornton LLP—professional accounting and business advisory firm

operating: accounting services

investing:  purchase of bonds

financing:  bonds

Southwest Airlines—discount airline

operating: insurance

investing: sale of a plain

financing: issue of bonds

<u>Most business have in common</u>

the payment of wages, taxes, rent and insurance.

Also the purchase or sale of equipment

And the issue of debt in form of bonds or a promissory note.

Explanation:

operating:    From the daily business main activity.

investing:    Mostly, from long term assets and investment

financing:    Mostly, from equity and liaiblities transaction which involves receive funds in exchange of interest

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Answer:

The solution is given in the attachments.

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tatuchka [14]

Answer:

11%

Explanation:

Interest rate is considered to be composed of following components:

- Real risk free interest rate

- Inflation premium*

- Default risk premium

- Liquidity premium

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Based on above, interest rate (r) is equal to:

r = real risk free interest rate + Inflation premium + Default risk premium + liquidity premium + maturity premium

In our example, assuming that Lola has computed 6% as total of all components except for inflation premium, so total she should charge 11% (6% + 5% inflation premium).

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5 0
2 years ago
Congress would like to increase tax revenues by 17 percent. assume that the average taxpayer in the united states earns $52,000
Vadim26 [7]

Calculation of average tax rate that will result in a 17 percent increase in tax revenues:


Currently, the average taxpayer in the united states earns $52,000 and pays an average tax rate of 20 percent, so the average tax revenue is 52000*20% = $10,400

If Congress wants to increase tax revenues by 17 percent, then the average tax revenue shall be 10400+(10400*17%) = $12,168


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2 years ago
The Tamarisk Heritage Centre (a not-for-profit organization providing language and arts and crafts programs for children) receiv
tatiyna

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48,939 patients

Explanation:

Breakeven quantity = fixed cost / price – variable cost per unit

$239,800 / ( $8.70 - $3.80) = 48,939 patients

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A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinishe
professor190 [17]

Answer:

It is more convenient to sell the units unfinished by $500.

Explanation:

Giving the following information:

Units= 1,000

Unfinished:

Selling price= $4.00 per unit.

Complete:

Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead

Selling price= $8.00 each.

We need to calculate the gross profit of each option and choose the more convenient:

Unfinished:

Gross profit= 1,000*4= $4,000

Complete:

Gross profit= 1,000*(8 - 4.5)= $3,500

It is more convenient to sell the units unfinished by $500.

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2 years ago
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