Answer:
The balance sheet should include no dividends payable
Explanation:
Looking at the scenario described , as Stockit did not declare a dividend in the two years of operation , this mean that dividends payable will not appear of the balance sheet.
Dividends payable is the amount of after tax profit that a company has authorized for distribution to shareholders as dividends . but not yet paid out in cash.This is recorded as liability on the company's balanced sheet after declaration and before payment. But on payment , it no longer appear on the balanced sheet.
In a situation where dividends are not declared by the company for whatever reason , it does not appear on the balance sheet
. In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitech stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?
Answer:
$52.89
Explanation:
To calculate the present value of a stock, we use the formula,
D + E
(1 + R)^Y
where, D = expected dividend, $4.35
E = expected stock price, $57
R = real rate of return, 16% or 0.16
Y = Number of years, 1
we have,
$4.35 + $57
(1 + 0,16) ^1 = $61.35 ÷ 1.16
= $52.887 ≈ $52.89.
The present value of the stock is $52.89.
Cheers.
Consider an economy made up of 100 people who are sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is _____.
Answer:
Labor force= 70
Explanation:
Giving the following information:
Consider an economy made up of 100 people:
60 of whom hold jobs
10 of whom are looking for work
15 of whom are retired
The labor force is the number of people of age 16 or more that are working or actively looking for one.
Labor force= 60 + 10
Labor force= 70
Xerox, the U.S. Postal Service, and McDonald's have enjoyed significant market power in the past. List and explain three major factors that have eroded this market power. Market power is eroded when A. better substitutes become available because the market has less competition. B. fewer substitutes are available because the market has less supply. C. no substitutes are available because consumers have no choices. D. better substitutes become available because consumers will not be willing to pay as much for a good. E. fewer substitutes are available because consumers are more sensitive to prices.
Answer:
Correct Answer:
E. fewer substitutes are available because consumers are more sensitive to prices.
Explanation:
Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. This is common among most big corporations that produces consumer goods and offer services.
This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:
1. Number of companies in the market: The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.
2. Elasticity of demand: The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.
3. Product differentiation: The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.
The process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as what...?
Answer:
Title closing
Explanation:
Title closing process involves all the steps to make sure that you complete all the legal requirements to buy a home and this includes signing the loan documents and the title before the transaction is completed. In this, there is an agent from the title closing company that handles the process to make sure everything goes smoothly. According to this, the answer is that the process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as title closing because this is a process that includes all the steps to complete the legal requirements to buy a real state like document signing of the loan.
A broker represents a seller but is currently working with a buyer to find a home. Assuming that no statute has replaced the traditional common law of agency, which of these correctly identifies the parties in this relationship?
Answer:
A). The broker is the seller's agent; the buyer is the broker's customer.
Explanation:
The first statement most aptly identifies the two different parties in this given relationship. The broker is the seller's agent as he would represent him and assist him in listing his properties for sale as per the terms set by him. This would help the seller in receiving the best price for his property and also in ensuring all the legal requirements to be met in time. The buyer is the broker's customer as he assists him in providing a variety of housing options to choose from according to his needs and requirements. Thus, the broker is representing both the buyer and the seller distinctively. Hence, option A is the correct answer.
A borrower expresses a reluctance to continue signing documents. The Notary Signing Agent may:A borrower expresses concern that once he signs all the documents he will be "stuck" with a second mortgage. A good response by a Notary Signing Agent could be to:
Answer:
Explanation:
In this scenario, a good response by a Notary Signing Agent could be to provide the Borrower with the Lender's contact information, and suggest that he call the Lender immediately before continuing with Signing. This will allow the borrower to clear up any doubts or misconceptions that he may be having which will in term persuade him to sign all the documentation.
A plant manager had taken a few measures to try to reduce worker turnover. For four months he monitored the implementation of the measures. He now finds that the turnover rate is reduced by 10 percent. Which step of the rational decision-making model is illustrated in the scenario
Answer:
Evaluating the results.
Explanation:
A Rational decision-making model is demonstrated as the structured and logical decision-making process consisting of various steps beginning from definition and identification of goals to reaching an effective solution after evaluation of plenty of alternatives.
In this situation, 'evaluating the results' is the step of rational-decision making process that is illustrated in this scenario as it aims to assess the effect of the implementation of the best solution selected in the previous step after assessing the problem and evaluating a number of alternatives. This step aims to test whether the solution worked and to give feedback on how to alter future decisions for better results according to this assessment.
Rhonda, a junior accountant at a manufacturing company, was laid off from her job because she rejected multiple requests from the company's chief financial officer to engage in a physical relationship with him. In the context of employment legislation, this scenario best illustrates _____.
Answer: quid pro quo sexual harassment
Explanation:
The scenario represented in the question regarding Rhonda and her company's chief financial officer is referred to as quid pro quo sexual harassment.
Quid pro quo sexual harassment is a situation that occurs when benefits, pay, employment, position, training, title, position are based on the condition that the other individual involved agree to ones sexual advances. It should be noted that this is illegal.
The fixed cost of Widget Corp., a keyboard manufacturing company, is $600,000 per year. The cost of equipment and labor to make one keyboard is $10. If the customers would pay $25 to buy one keyboard, Widget Corp. needs to sell _____ keyboards to make profits.
Answer: more than 40000
Explanation:
Given : Fixed cost per year = $600,000
Cost of equipment and labor to make one keyboard = $ 10
Selling price of 1 keyboard = $25
Gain on each keyboard = Selling price - cost
= $25 - 410
= $15
Minimum number of keyboards need to sell to make profit = ( Fixed cost) ÷ (Gain)
= 600,000 ÷ 15
= 40000
Hence, Widget Corp. needs to sell more than 40000 keyboards to make profits.
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021.
March 1 Issues 55,000 additional shares of $1 par value common stock for $52 per share.
May 10 Purchases 5,000 shares of treasury stock for $55 per share.
June 1 Declares a cash dividend of $1.50 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
July 1 Pays the cash dividend declared on June 1.
October 21 Resells 2,500 shares of treasury stock purchased on May 10 for $60 per share.
Required:
Record each of these transactions.
Answer and Explanation:
The journal entries are shown below:
On March 1
Cash Dr (55,000 × $52) $2,860,000
To Common stock (55,000 × $1 per share) $55,000
To Additional paid in capital - common stock $2,805,000
(Bein the issuance of the common shares are recorded)
On May 10
Treasury stock Dr (5,000 shares × $55) $275,000
To Cash $275,000
(being the purchase of treasury stock)
On June 1
Dividend Dr (150,000 shares × $1.50) $225,000
To Dividend payable $225,000
(Being the cash dividend is declared)
On July 1
Dividend payable Dr (150,000 shares × $1.50) $225,000
To cash $225,000
(being the dividend paid is recorded)
On October 21
Cash Dr (2,500 shares × $60) $150,000
To Treasury stock (2,500 shares × $55) $137,500
To Additional paid in capital - treasury stock $12,500
(Being the reissuance of the treasury stock is recorded)
Compose two paragraphs that predict the impact this tax cut and increased funding for unemployment insurance will have on the following: the economy as a whole individuals other government programs the government debt Be sure to justify your predictions, use proper grammar, and include topic sentences, an introduction, a conclusion, and information from the video.
Answer:
Extending the cut to payroll taxes will have a positive impact on the economy as a whole. With the continued decrease in the tax rate, people will have more money to spend more on goods and services. This will encourage businesses to hire more workers and will reduce unemployment. The economy will experience a boost, and recovery will take place. This tax cut will add an extra $40 to the average paycheck. People might use the extra income for rent, groceries, or gas.
Increased funding for unemployment insurance will ensure that eligible unemployed individuals will continue to get unemployment compensation. The extended unemployment compensation will lead to more production in the economy, which will help reduce government debt. An increase in production will lead to an increase in employment and output. When production increases, individuals’ incomes also increase, so the government will collect more income taxes to fund repayment of its debt.
Explanation:
PLATO
Answer:
The tax cut and the increased funding of unemployment insurance will benefit the economy as a whole. As unemployment rise, fewer people are going to have money to buy goods therefore, businesses will have less money to hire workers. This will not be fixed if there weren't any unemployment insurance. With unemployment money, people are going to buy more and the economy will boost. This not only benefits individuals but the economy as a whole. However, this may increase government debt and may have decrease funding to other government programs.
Explanation:
This is not from plato or edmentum. I typed it myself
Which one of the following statements is correct?
A. A portfolio variance is a weighted average of the variances of the individual securities which
comprise the portfolio.
B. A portfolio variance is dependent upon the portfolio;s asset allocation..
C. A portfolio variance is unaffected by the correlations between the individual securities held in
the portfolio.
D. The portfolio variance must be greater than the lowest variance of any of the securities held in
the portfolio.
E. The portfolio variance must be less than the lowest variance of any of the securities held in the
portfolio.
Answer:
B. A portfolio variance is dependent upon the portfolio's asset allocation.
Explanation:
A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.
Hence, the correct statement among the options given is that, a portfolio variance is dependent upon the portfolio's asset allocation.
The portfolio variance is given by the equation;
[tex]Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}[/tex]
Where;
[tex]w_{n}[/tex] = the weight of the nth security.
[tex]d^{2}_{n}[/tex] = the variance of the nth security.
[tex]C_{OV_{1, 2}}[/tex] = the covariance of the two security.
Markus Company sells 1,000 bonds of its debt investment in Berta Inc. for $20,000. The original cost of the 1,000 bonds was $18,000. During the prior year, the bonds were reported on the balance sheet at a fair value of $19,000. Assume the investment was accounted for as available-for-sale and all unrealized holding gains and losses have been reversed. The journal entry to record the sale of the bonds should include these credits:
Answer:
To Investment i.e available for sale $18,000
To Gain on sale of an investment $2,000
Explanation:
The journal entry for the sale of the bond is shown below:
Cash Dr $20,000
To Investment i.e available for sale $18,000
To Gain on sale of an investment $2,000
(Being the sale of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the investment and gain on sale of investment so that the proper posting could be done
Ace Credit Card Company agrees to transfer cash to Seller Company deposit of that company's credit card sales sales. If Seller Company deposits $57,300 credit eard statements is true?
A. Ace will receive $56,154 cash from Seller Company
B. Seller Company will receive cash $56,154 from Ace
C. Ace will receive $57,300 cash from Seller Company
D. Seller Company will receive $57,300 cash from Ace
E. Ace will pay Seller Company a $1,146 credit card fee
Answer:
The question is incomplete, below is a possible match of the complete question:
Ace Credit Card Company agrees to transfer cash to Seller Company immediately upon deposit of that company's credit card sales receipts. Ace charges a 2% fee for all credit card sales. If Seller Company deposits $57,300 credit card sales receipts, which of the following statements are true?
A. Ace will receive $56,154 cash from Seller Company
B. Seller Company will receive cash $56,154 from Ace
C. Ace will receive $57,300 cash from Seller Company
D. Seller Company will receive $57,300 cash from Ace
E. Ace will pay Seller Company a $1,146 credit card fee
The correct answer is:
Seller Company will receive cash $56,154 from Ace (B)
Explanation:
Since Ace charges a 2% fee for all credit card sales, for a deposit of $57,300 by Seller company, the 2% service charge will be deducted, and to find how much cash seller company will receive, we will calculate the balance on the deposited amount after the 2% fee has been deducted. This is done as follows.
2% of $57,300 = 2/100 × 57,300
= 0.02 × 57,300 = $1,146
Therefore, balance after deduction:
= 57,300 - 1,146 = $56,154
Hence, seller company will receive a cash of $56,154 from Ace for the credit card sales.
A country has been in existence for only two years. In the first year, receipts were $1.0 million and outlays were $1.5 million. In the second year, receipts were $1.5 million and outlays were $2.0 million. At the end of the second year, the government had issued debt worth ______.
Answer: $1 million
Explanation:
From the question, we are informed that a country has been in existence for only two years and that in the first year, receipts were $1.0 million and outlays were $1.5 million. Since outlays us more than revenue, it shows that there's a debt of ($1.5m - $1.0m) = $0.5 million.
In the second year, receipts were $1.5 million and outlays were $2.0 million. This also shows that there is a debt of $0.5 million.
At the end of the second year, the government had issued debt worth:
= $0.5 million + $0.5 million
= $1 million
31. People might withdraw money from interest-bearing accounts,
a. making the interest rate fall, if there is a surplus in the money market.
b. making the interest rate rise, if there is a surplus in the money market.
c. making the interest rate fall, if there is a shortage in the money market.
d. making the interest rate rise, if there is a shortage in the money market.
Answer:
The correct answer is D. People might withdraw money from interest-bearing accounts, making the interest rate rise, if there is a shortage in the money market.
Explanation:
In case of a shortage of money in the economy, where people who need to consume and produce do not have immediate liquid money to carry out their economic activities, individuals will withdraw the money invested in their accounts to have cash to cover their immediate needs. Thus, the level of money in circulation will increase, but at the same time the liquidity of investment accounts will fall, with which banks will tend to raise interest rates to recover investors and therefore cover the losses in their accounts.
Standard costs are: Multiple Choice Actual costs incurred to produce a specific product or perform a service. Preset costs for delivering a product or service under normal conditions. Established by the IMA. Rarely achieved. Uniform among companies within an industry.
At Sunshine Toys, several employees must work together to develop a new product. No one in this group has worked with any of the others before, and the development of this product has not been attempted previously. According to the media richness model, which of the following communication channels is most appropriate in this situation?
A. emails
B. instant messaging
C. written documents
D. face-to-face meetings
Answer:
B OR D
Explanation:
B and D are the most reasonable answers. D is most likely the answer though.
Buyline is an e-commerce Web site. It has come up with a promotional offer where buyers get a 60 percent discount on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced. In this case, it is evident that BuyLine is a _____.
Answer:
Group buying platform
Explanation:
Group buying platform is also known as collective buying and is when the prices of goods and services are significantly reduced on the condition that a minimum number of buyers make purchase.
Usually there is a deal of the day displayed that is activated when the minimum number of buyers has been reached.
In this scenario Buyline has a promotional offer where buyers get a 60 percent discount on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced.
This is a group buying platform
Austin was often late to work, despite his manager, Ben, warning him against it several times. As a last resort, Ben reduced Austin's salary in proportion to the hours he missed at work by being late. It turned out to be the right thing to do as Austin was never late to work after the incident. Which of the following best explains this scenario?
a. positive reinforcement
b. negative reinforcement
c. instrumentality
d. valence
Answer:
b. negative reinforcement
Explanation:
Negative reinforcement refers to the response that helps in eradicating or removing certain behaviors in the individual. Some discomforting or disturbing action is taken that helps in the enhancement of a behavior.
In the given excerpt, Austin's behavior of coming late to the office is removed when his manager, Ben applied negative reinforcement. When Austin's salary was deducted because of being late at the office, helped him of improving his nature.
You own 1,000 shares of stock in Avondale Corporation. You will receive a dividend of $1.04 per share in one year. In two years, Avondale will pay a liquidating dividend of $37.50 per share. The required return on Avondale stock is 15.8 percent. What will your dividend income be this year if you use homemade dividends to create two equal annual dividend payments? a. $19,270 b. $16,712 c. $18,667 d. $17,935 e. $20,400
Answer:
Dividend = $17,935
Explanation:
We need to calculate the current share price
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
Current share price= ({1.04} ÷ {1 + 0.158}) + ({37.5} ÷ {1 + 0.158}^2)
Current share price= 0.898 + 27.96
Current share price= $28.86
To calculate income for 2 years
Share price is $28.86
Return is 15.8%
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
28.86 = ({Dividend year 1} ÷ {1 + 0.158}) + ({Dividend Year 2} ÷ {1 + 0.158}^2})
28.86 * 1.158 * 1.341 = (Dividend * 1.158) + (Dividend * 1.341)
44.82 = 2.499 * (dividend)
Dividend = $17.935
So for 1,000 shares
Dividend = 1,000 * 17.935 = $17,935
A buyer bought a house, received a deed, and moved into the residence but neglected to record the document. One week later, the seller died and the heirs in another city, unaware that the property had been sold, conveyed title to a relative, who recorded the deed. Who owns the property
Buyer because he neglected the documents.
In the given case, buyer owns the property because he neglected the documents.
Who is the buyer?Anyone in the financial or business fields who research, assesses, and buys things for businesses to sell or utilize in their operations is referred to as a buyer.
Buyers, often referred to as purchasing agents, have to stick to a budget and frequently haggle for reasonable prices on the goods they wish to purchase. A person can learn more about the clients' requirements and desires by using buyer personas. This makes it possible to appeal to those particular desires more successfully.
Therefore, due to his lack of the paperwork, the buyer in the above situation is the owner of the property.
Learn more about the buyer, refer to:
https://brainly.com/question/13954956
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Humble leaders display all of the following key qualities valued by employees except Multiple Choice appreciation of others. low self-awareness. openness to feedback. appreciation of the greater good. low self-focus.
The correct answer is B) low self-awareness.
Humble leaders display all of the following key qualities valued by employees except low self-awareness.
What employees value is high self-awareness, the appreciation of others, openness to feedback, appreciation of the greater good, and low self-focus.
A true leader is an individual who not only leads but teaches others how to lead to. For this to happen, trust is a key value so the employees can feel that indeed there is a true team atmosphere in the organization. Employees must feel appreciated, valued, and motivated through a common goal. That is why it is so important that the leader sets the example all the time.
Low self-awareness should not show the key qualities valued by employees.
The following information should be considered for key qualities:
Appreciation of others.Openness to feedback. Appreciation of the greater good. Low self-focus.Also, low self-awareness represents the value of an employee that should be harmful for everyone.
Therefore we can conclude that Low self-awareness should not show the key qualities valued by employees.
Learn more: brainly.com/question/15569649
Karl knows that TrueHeart Industries prides itself on using green processes to reduce its impact on the environment. During his interview with the hiring manager at TrueHeart, Karl recounted a story about the recycling program he set up in his dormitory at the university. By doing so, Karl was communicating to his potential employer that he has
Answer: character
Explanation:
From the question, we are informed that Karl knows that TrueHeart Industries prides itself on using green processes to reduce its impact on the environment and that during his interview with the hiring manager at TrueHeart, Karl recounted a story about the recycling program he set up in his dormitory at the university.
By doing so, Karl was communicating to his potential employer that he has character. Doing this will help leave a positive impression on the hiring manager.
A mortgage-loan officer persuades unsuspecting consumers to sign up for exotic mortgages, such as "option ARMs." These mortgages offer borrowers the choice to pay less than the required interest, which is then added to the principal while the interest rate can adjust upward. Because of this setup, many borrowers are unable to repay the mortgage once the interest rates go up. Which of the following phrases best describes this scenario? (CSLO 4)
A. legal but not ethical
B. legal and ethical
C. neither legal nor ethical
D. ethical but not legal
Answer: A. legal but not ethical
Explanation: Introducing mortgage plans to consumers in other to cater for their needs by a mortgage-loan officer is not a legal crime which will be penalized by the law. However, it is an ethical obligation on the path of the mortgage-loan officer to explain the modalities attached to a certain mortgage plan to consumers, both the advantages and the demerits. In the options ARM mortgage plan, it affords consumers to pay below the interest rate on the mortgage, this short paid interest are later added to the principal and the rates increases. This may cause a lot more harm than good to consumers who do not have detailed knowledge of this particular loan process.
A company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000. The amount to be reported under cash flows from financing activities is _____. $(8,000) $(60,000) $12,000 $40,000 $(52,000)
Answer: $(60,000)
Explanation:
From the question, we are told that a company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000.
The amount to be reported under cash flows from financing activities will be $60,000. This is the amount from the question that the bonds are retired for.
Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June:
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
a. Materials purchased on account, $180,000.
b. Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.
c. Direct labor used by Machining, $23,000, Assembly, $47,000.
d. Depreciation expenses: Machining, $4,500; Assembly, $7,800.
e. Factory overhead applied: Machining, $9,700; Assembly, $11,300.
f. Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.
g. Sold goods on account, $100,000. Cost of goods sold, $68,000
Answer and Explanation:
The Journal entry is shown below:-
a. Material Inventory Dr, $180,000
To Accounts Payable $180,000
(Being Material Purchased is recorded)
b. Work in progress Machining Dept. Dr, $73,000
Manufacturing Overheads Machining Dept. Dr, $9,000
Manufacturing Overheads Assembly Dept. Dr, $4,900
To Material Inventory $86,900
(Being Material issued to department is recorded)
c. Work in progress Machining Dept. Dr, $23,000
Work in progress Assembly Dept. $47,000
To Wages Payable $70,000
(Being Direct Labor used is recorded)
d. Manufacturing Overheads Machining Dept. Dr, $4,500
Man. Overheads Assembly Dept. Dr, $7,800
To Depreciation Expense $12,300
(Being Depreciation allocated is recorded)
e. Work in progress Machining Dept. Dr, $9,700
Work in progress Assembly Dept. Dr, $11,300
To Manufacturing Overheads Machining Dept. $9,700
To Manufacturing Overheads Assembly Dept. $11,300
(Being Factory overheads applied is recorded)
f. Work in progress Assembly Dept. Dr, $98,300
To Work in progress Machining Dept. $98,300
(Being WIP Transferred is recorded)
Finished Goods Inventory Dr, $83,400
To Work in progress Assembly Dept. $83,400
(Being Finished goods transferred is recorded)
g. Accounts Receivables Dr, $100,000
To Sales $100,000
(Being Goods sold on account is recorded)
Cost of Goods sold Dr, $68,000
To Finished Goods Inventory $68,000
(Being Goods sold is recorded)
A customer has purchased 5,000 shares of ABC corporation stock in lots of 100 shares over an extended period of time at varying prices. The customer now sells 500 of the shares. Which statement is TRUE
Answer:
c. IRS rules allow the taxpayer to specify which shares being sold
Explanation:
Given that
Number of shares purchased = 5,000
Number of lots for shares = 100
The Number of shares sold = 500
based on the above information,
According to the internal service revenue (IRS) the taxpayer should be permitted to specify that shares which are sold i.e 500 shares so the same is to be considered
hence, the option c is correct
Lexi Company forecasts unit sales of 1,640,000 in April, 1,250,000 in May, 810,000 in June, and 1,650,000 in July. Beginning inventory on April 1 is 250,000 units, and the company wants to have 30% of next month’s sales in inventory at the end of each month. Prepare a merchandise purchases budget for the months of April, May, and June.
Answer:
Explanation:
From the information given in the question:
The main objective is to Prepare a merchandise purchases budget for the months of April, May, and June
Merchandise Purchases Budget
April May June
Next months' budgeted 1250000 810000 1650000
Sales
Ratio of inventory 30% 30% 30%
Desired ending inventory 375000 243000 495000
Sales unit 1640000 1250000 810000
Required units of
available inventory 2015000 1493000 1305000
Less:Beginning Inventory -250000 - 375000 - 243000
Units to be purchased 1765000 1118000 1062000
N:B
Desired ending inventory = Next months' budgeted sales × Ratio of inventory
Required units of available inventory = Desired ending inventory + Sales unit
Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Home Smart adopted in this scenario?
a. market penetration
b. cost-leadership
c. differentiation product
d. diversification
Answer:
C
Explanation:
Product differentiation is a marketing strategy where a company strives to distinguish the products it offers to consumers from other products.
differentiation could be in terms of offering a broad range of products to consumers or offering products of superior quality to consumers or offering better services to customers