Justin's Plant Store, a retailer, started operations on January 1. On that date, the only assets were $16,000 in cash and $3,500 in merchandise inventory. For purposes of budget preparation, assume that the company's cost of goods sold is 60% of sales. Expected sales for the first four months appear below:
Expected Sales
January
$10,000
February
24,000
March
16,000
April
25,000
The company desires that the merchandise inventory on hand at the end of each month be equal to 50% of the next month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales should be for cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the month of sale, with the balance collected in the following month. Variable operating expenses should be 10% of sales, and fixed expenses (all depreciation) should be $3,000 per month. Cash payments for the variable operating expenses are made during the month the expenses are incurred.
In a budgeted income statement for the month of February, what would be the net income?
Answers
The income statement for the month of February:
Sales: $24,000
The net income for the month of February would be $4,200.
To determine the net income for the month of February, we need to calculate the various components of the income statement based on the given information.
1. Sales:
January Sales: $10,000
February Sales: $24,000
2. Cost of Goods Sold (COGS):
The COGS is given as 60% of sales.
January COGS: $10,000 * 60% = $6,000
February COGS: $24,000 * 60% = $14,400
3. Merchandise Purchases:
The desired merchandise inventory at the end of February is 50% of March's sales.
February Sales: $24,000
March Sales: $16,000
Desired inventory (at cost) for March: $16,000 * 50% = $8,000
Since the merchandise inventory on hand at the start of February was $3,500, the additional purchases required are:
Required Purchases for February: $8,000 - $3,500 = $4,500
4. Variable Operating Expenses:
Variable operating expenses are stated as 10% of sales.
February Sales: $24,000
Variable Operating Expenses: $24,000 * 10% = $2,400
5. Fixed Expenses:
Fixed expenses are given as $3,000 per month.
6. Cash Payments for Variable Operating Expenses:
Cash payments for variable operating expenses are made during the month the expenses are incurred, so the amount is the same as the variable operating expenses.
Cash Payments for Variable Operating Expenses: $2,400
Now, let's calculate the income statement for the month of February:
Sales: $24,000
Cost of Goods Sold: $14,400
Gross Profit: Sales - COGS = $24,000 - $14,400 = $9,600
Variable Operating Expenses: $2,400
Fixed Expenses: $3,000
Total Operating Expenses: Variable Operating Expenses + Fixed Expenses = $2,400 + $3,000 = $5,400
Operating Income: Gross Profit - Total Operating Expenses = $9,600 - $5,400 = $4,200
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Related Questions
Question 8 of 20 Which of the following reasons for writing a formal business document would lead you to write a proposal?
A. To tell your manager a project is on budget and on schedule
B. To summarize what happened during a meeting
C. To convince your manager to use a new meeting organization tool
D. To describe what tasks you completed during the week
Answers
Answer: i say A
Explanation:
Answer:
cc just did it
Explanation:
When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
Answers
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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Strategies for managing conflict
Answers
Can I get a brainest point plsssssss
1. Don't Ignore Conflict
If you're someone who dislikes dealing with conflict, it might seem tempting to just put your head in the sand and pretend it doesn't exist, hoping it will resolve itself on its own. While this sometimes can happen, the truth is that the vast majority of the time, this will only cause the situation to get worse. Ignored conflicts have a tendency to fester over time and reappear at inopportune moments, so do your team a favor and address conflicts when they occur, nipping a potentially toxic situation in the bud as soon as you recognize it.
2. Clarify What the Issue Is
If you're dealing with a conflict between two members of your team, it's important that you get all the facts. Sit down with each individual involved and find out exactly what the issue is. How is each individual perceiving the situation? What needs are not being met? What does each party see as an appropriate resolution? Make sure that all parties involved understand that you are acting as an impartial mediator, and let them know they can feel comfortable to share sensitive information.
3. Bring Involved Parties Together to Talk
Once you've had a chance to talk to all involved parties separately, bring them together in a meeting so that they can hash out their differences in a neutral environment. This is a time for brainstorming, active listening, and being open to different perspectives - the goal is to come to a common understanding of what the problem is, what role each individual is playing in the conflict, and what some possible solutions might be.
4. Identify a Solution
After both parties have had a chance to discuss the situation at hand, it's time to identify what a satisfactory resolution might be - and how to get there. Ideally, by this point, both parties will understand the other's side, and oftentimes the conflict will be resolved just through facilitated, open dialogue. However, if the situation requires further resolution, you will need to step in and help them negotiate a reasonable solution. This phase can require some time and effort, as it requires both parties to set aside their differences and preferences and find some common ground to work towards (which may involve not getting everything they want out of the situation). Then, work with both individuals to come up with a concrete list of steps that will result in the solution being achieved.
5. Continue to Monitor and Follow Up on the Conflict
Just because a solution has been identified and addressed doesn't mean it will just go away. As a manager, it's your responsibility to check in with both parties to ensure that the conflict has truly been dealt with, and that the steps identified to reach a solution are being followed. If all seems to be going well, simply remember to stop and observe from time to time, just to see if things really are going smoothly or if there are still lingering tensions under the surface that need to be handled. If it's clear that the solution didn't work, or wasn't the right resolution for the situation, make sure to be proactive in working with both parties to readjust expectations, identify alternative solutions, and continue their dialogue to create a positive and healthy work environment.
Self-insurance means:
Question 4 options:
A. Insuring your voice.
B. Buying health insurance.
C. Assuming your own financial risk for some of your property.
D. Buying extra insurance from your insurance company.
Answers
Answer:
assuming your own financial risk for some of your property
Answer:
Assuming your own financial risk for some of your property
What is the interest earned in a savings account after 12 months on the balance of $1000 if the interest rate is 1% APY compounded yearly
Answers
The the interest earned in a savings account after 12 months on a balance of $1000, with a 1% APY compounded yearly, is $10.
How to calculate the interest earned in a savings accountUsing the formula for compound interest:
A = P(1 + r/n)^(n*t)
Given:
P = $1000
r = 0.01 (1% in decimal form)
n = 1 (compounded yearly)
t = 1 year
Substituting the values into the formula:
A = 1000(1 + 0.01/1)^(1*1)
A = 1000(1.01)^1
A = 1000(1.01)
A = 1010
The final amount after 12 months is $1010.
To find the interest earned, we subtract the initial balance from the final amount:
Interest earned = A - P
Interest earned = $1010 - $1000
Interest earned = $10
Therefore, the interest earned in a savings account after 12 months on a balance of $1000, with a 1% APY compounded yearly, is $10.
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ian gonna need these so here
Answers
Answer:
hi
Explanation:
If an error is found when posting to the ledger, how would it be corrected?
Answers
Most time, when an error is found when posting to the ledger, it would be corrected by reversing the incorrect entry and use a second journal entry to record the transaction correctly,
What is a ledger error?In a ledger, the error can be called a wrong posting may be in the forms of posting a wrong amount to a ledger account or posting to the wrong side of an account or double posting.
All these type of errors affect mostly only one side of ledger accounts and they are mostly revealed by the trial balance through disagreement of debit and credit totals.
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The Amgen Biotec Co. just paid a dividend of $1 per share (Be careful, the word "just paid" makes the dividend of $1 a current dividend Do, not D1.). Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter. If the required rate of return on the stock is 18%, what is the current value of the stock?
Answers
The current value of the stock is $3.48 per share.
Here are the steps required to compute the current value of the stock:
Step 1: Calculate the current dividend
Using the statement, the Amgen Biotec Co. just paid a dividend of $1 per share, this implies that the current dividend D0 is $1.00 per share.
Step 2: Calculate the dividends for the next three years
At a growth rate of 25%, the dividends for the next three years are given by:
D1 = D0 (1 + g) = $1.00 (1 + 0.25) = $1.25 per share
D2 = D1 (1 + g) = $1.25 (1 + 0.25) = $1.563 per share
D3 = D2 (1 + g) = $1.563 (1 + 0.25) = $1.953 per share
Step 3: Calculate the dividends after the third year
At a growth rate of 5%, the dividends after the third year can be calculated using the following formula:
D3(1 + g) / (r - g) = $1.953(1 + 0.05) / (0.18 - 0.05) = $21.30 per share
Step 4: Calculate the current value of the stock
Using the dividend discount model (DDM), the current value of the stock can be calculated as follows:
P0 = (D1 / (1 + r)) + (D2 / (1 + r)2) + (D3 / (1 + r)3) + ... + (Pn / (1 + r)n)
Where r is the required rate of return on the stock and n is the number of periods.
In this case, n = 3 because the dividends are expected to grow at 25% for the next three years. So, the formula can be simplified as:
P0 = (D1 / (1 + r)) + (D2 / (1 + r)2) + (D3 / (1 + r)3)
P0 = ($1.25 / (1 + 0.18)) + ($1.563 / (1 + 0.18)2) + ($1.953 / (1 + 0.18)3)
P0 = $1.06 + $1.17 + $1.25P0 = $3.48
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Which function of money describes its ability to enable trade between
different people?
A. Store of value
B. Measure of value
O C. Standard of deferred payment
D. Medium of exchange
Answers
Answer:
D. Medium of exchange
Explanation:
A medium of exchange is any physical object used as a measure of value to facilitate the transfer of goods and services between sellers and buyers. A medium of exchange acts as a go-between in transactions. In modern trade, money is the most widely accepted medium of exchange.
Today, goods and services are given a monetary value. Trade becomes relatively easy as buyers and sellers know how much money is needed to complete a transaction.
Can you be wise and intelligent at the same time .
Answers
Answer:
yes :)
Explanation:
wisdom comes from experience intelligence doesn't
Answer:
yes of course .................
Simply Imagine wants to grow their company but is hindered by increasing labor costs and import quotas.
Simply Imagine should consider becoming a(n)
(A) countertrader (B) wholly owned subsidiary (C) strategically(D) mulimatiomnal (E) franchiser
Answers
Answer:
multinational
Explanation:
A multinational business operates in at least one other country apart from its home country. The company will have factories/ offices in different countries and its headquarters in the domicile state. The operations of a multinational are coordinated at its headquarters.
By becoming a multinational, simple imagine can expand in countries with relatively cheap labor. It will overcome the import quota challenge by operating from a country without restrictions or from the source state.
.WHAT ARE THE MERITS AND DEMERITS OF MNC
Answers
Explanation:
Merits1. it has created a competition through which large varieties of a single goods is available in the market.
2. for the home country, it has lessens the dependence on import and lead to economic development by providing new jobs opportunity .
Demerits1. in some host Nation, the appearance of MNC can regulate competition and main event create a monopoly .
2. workers in the MNCs are paid on an irregular bases and they are often laid off without any payment during the time of recession .
What is the ratio formula for quick ratio?
Answers
A company's most liquid assets, such as cash, cash equivalents, marketable securities, and accounts receivable, are divided by all of its current liabilities to arrive at the quick ratio.
The value of a company's "quick" assets is divided by the current liabilities to arrive at the quick ratio. "Quick assets" are cash and assets that can be converted into cash fast, frequently within 90 days.
Marketable securities, such as stocks or bonds that the corporation can sell on regulated exchanges, are among these assets. They also consist of accounts receivable, which are sums of money that consumers owe the business under short-term credit agreements.
Stock is excluded from the quick ratio because it could be difficult to turn your inventory into cash rapidly without sizable discounts, whether it be apparel for a retailer or cars for a car dealer. Prepaid expenses are also excluded from the fast ratio since, although they are short-term assets, they are not easily convertible into cash.
The fast ratio assesses a company's ability to receive quick infusions of funds. For lenders and investors, it is a useful indicator of a company's resilience. It is one of many liquidity gauges that business managers can use to inform their operational decisions, typically with the help of their accounting partner.
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a company uses its company-wide cost of capital to evaluate new capital investments. what is the implication of this policy when the company has multiple operating divisions, each having unique risk attributes and capital costs?
Answers
A company uses its company-wide cost of capital to evaluate new capital investments, the implication of this policy when the company has multiple operating divisions, each having unique risk attributes and capital costs may lead to incorrect decisions
A company-wide cost of capital may either overestimate or underestimate a division's cost of capital. In such situations, a company should estimate the division's cost of capital separately to make accurate investment decisions. This approach requires an understanding of the risk-return profile of each division to determine the required return on investment. The division's risk profile must be assessed using a risk analysis, and its cost of capital must be calculated using the division's particular risk-adjusted WACC (Weighted Average Cost of Capital).
The division's cost of capital must be used to analyze and evaluate the projects. If the company is unwilling or unable to calculate the division's cost of capital, an alternative approach is to adjust the cost of capital for each division. However, the adjustment must be based on the estimated level of risk of the division and the overall risk of the company. Finally, the company should use an appropriate cost of capital for each investment opportunity rather than a company-wide cost of capital. So therefore when a company has multiple operating divisions with varying risk attributes and capital costs, using a company-wide cost of capital to assess new capital investments may lead to incorrect decisions.
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The first assumption of rational choice theory says that consumers seek _____ and make their choice on that basis.
Answers
Answer:
D. one optimal solution to a problem.
Explanation:
The Rational Choice Theory is proposed by Adam Smith in the late eighteenth century. The Rational choice theory is used in number of fields such as philosophy, economics, and psychology.
According to this theory, people tend to make choices that includes self-interest and will benefit them in the long run. The first assumption of rational choice theory is that consumers seek personal preference and one optimal solution to a problem and make decision based on this preferences.
Therefore, the correct option is D.
Does a credit report have any errors on it.
Answers
Yes, it is possible for a credit report to have errors on it. These errors can include incorrect information about a person's credit history, such as a missed payment or a loan that was never taken out.
It is important for individuals to regularly check their credit reports and dispute any errors they find in order to maintain an accurate credit history. Common errors on credit reports include incorrect personal information, such as your name, address, or Social Security number, as well as inaccurate information about your credit history, such as late payments or accounts that you never opened. If you find errors on your credit report, you can dispute them with the credit reporting agency that issued the report. The agency is required to investigate the dispute and correct any errors that it finds.
Correcting errors on your credit report can be important because inaccurate information can negatively impact your credit score and your ability to obtain credit in the future.
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Which of the following is NOT an example of monetary policy? a. The Federal Reserve reduces the reserve requirement. b. The Federal Open Market Committee decides to sell bonds. c. The Federal Open Market Committee decides to buy bonds. d. The Federal Reserve facilitates bank transactions by clearing checks.
Answers
Answer:
A
Explanation:
Monetary policy controls the process of drafting, announcing, and enforcing the plans taken by the central bank, currency board, or other competent monetary authority that controls the amount of money in an economy and the channels by which new money is supplied
The statement that cannot be considered an example of monetary policy is A:The Federal Reserve reduces the reserve requirement.
Monetary policy can be regarded as control of the quantity of money which is present in an economy as well as the channels that is needed for new money to be supplied. It involves the federal to Open Market Committee who bring decision in selling or buying of bonds.Therefore, option A is correct.
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please help this is for economics
Answers
Answer: its not clear
Explanation:
do u mind send or uploading it again?
Hi guys! 40 points!
I would appreciate some help on this one, I'm stumped lol.
What are some ways to encourage companies to get involved in exporting? Would exporting necessarily lead to a favorable balance of trade?
Answers
Answer:
1. Give companies the idea that they have an advantage in certain foreign markets and that they can earn a lot of money from this. Companies that make good business with exporting goods also earn them a reputable reputation.
2. If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.
Explanation:
hope this helps :)
Hey everyone, I just thought you all should know that...
you are AMAZING
you are BEAUTIFUL
you are SMART
you are KIND
you are NOT going to give up on your FIGHT
and you better stay ALIVE!!! <33
Answers
Answer:
thanks lol
you too-
prepare a double entry ledger entries January 3 took out of the cash till$50 and put into the business by cheque Jan 4 the proprietor put a further$5000 in to business by cheque .please I need it quick
Answers
Explanation:
In the first entry, $50 is taken out of the cash till and put into the business as drawings. The effect is a decrease in the cash balance and an increase in the drawings account.
In the second entry, the proprietor puts a further $5000 into the business by cheque. The effect is an increase in the capital account and an increase in the bank balance.
It's important to note that "Drawings" and "Capital" are the accounts used to record the personal transactions of the business owner in this case, it is assumed that the business is a proprietorship. Other forms of business may have different accounts to record the personal transactions of the owne
When your tire blows out in the middle of a drive, you should
Answers
get out of the car and change it
To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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Maria is a recruiter with a bachelor's degree in business administration. She is well respected among her peers for her professional standards and understanding of the HR field. However, she has noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. The most likely reason for this is because Maria:________.
Answers
Group of answer choices.
A. Is not warm enough to the applicants.
B. Is perceived as less credible because she is an HR specialist.
C. Does not give applicants enough information, leaving them with more questions than answers.
D. Comes off as being too professional for someone in the HR field.
E. Is not approaching the candidate with enough skepticism.
Answer:
B. Is perceived as less credible because she is an HR specialist.
Explanation:
Human resources (HR) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Hence, human resources managers are saddled with the responsibility of managing and improving the welfare and working conditions of the employees working in an organization.
In this scenario, Maria is well respected among her peers for her professional standards and understanding of the HR field. She noticed that when she recruits engineers for her company, they sometimes seem unresponsive to her. Thus, the most likely reason for this is because Maria is perceived as less credible because she is an HR specialist and as such is considered not to have a deep understanding of the field of engineering to recruit a qualified and experienced candidate.
Please help it's the last question but I'm struggling a bit
Answers
Answer:
2: contribution to the searching marketing the product
searching for new customers for the product
3: contribution to advance in the services offered.
4: improving the economy to invest more income
5:to increase and promote the community hence advertising the event for attraction.
Emerald inc. Sells a particular textbook for $20. Variable expenses are $15 per book. At the current volume of 50,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:.
Answers
The annual fixed expenses associated with the textbook total $250,000.
What is the annual fixed expenses associated with the textbook total?To determine the annual fixed expenses associated with the textbook, you need to calculate the total expenses at the current volume of 50,000 books sold per year. This can be done using the following formula:Total expenses = Fixed expenses + Variable expenses x Number of books soldSince the company is just breaking even, this means that the total expenses equal the total revenue:Total expenses = Total revenueSubstituting the given information:Fixed expenses + Variable expenses x Number of books sold = Revenue per book x Number of books soldFixed expenses + $15 x 50,000 = $20 x 50,000Solving for fixed expenses:Fixed expenses = ($20 x 50,000) - ($15 x 50,000)Fixed expenses = $1,000,000 - $750,000Fixed expenses = $250,000Therefore, the annual fixed expenses associated with the textbook total $250,000.To learn more about Annual expenses refer:
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Explain the difference between a job interview and a interview
Answers
Answer:
An interview is a procedure designed to obtain information from a person through oral responses to oral inquiries. An interview is the way of face to face conversation between the interviewer and the interviewee, where the interviewer seeks replies from the interviewee for choosing a potential human resource.
Explanation:
Which of the following is a common marketing CRM metric?
Average time to resolution
Cost per interaction by marketing campaign
Number of new prospective customers
Average number of service calls per day
Answers
Option (b), One frequent marketing CRM measure is cost per interaction per marketing campaign.
How do you define CRM marketing strategy?"Customer relationship management" is what CRM stands for. A CRM strategy is your plan of action for improving communication between your sales, marketing, and customer service teams and your clients. CRM strategies and software solutions usually work together.
What is the CRM's main objective?All of your company's contacts and relationships with present and potential customers are organized by the customer relationship management (CRM) application. It's simple to understand the goal: to promote stronger business ties. Through the usage of a CRM system, businesses can increase profitability, process effectiveness, and client retention.
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Which of the following statements is false?
1. Bayes’ theorem provides a way to transform prior probabilities into posterior probabilities.
2. If A and B are mutually exclusive events, then P(A | B) = 0.
3 When assigning subjective probabilities, use experience, intuition, and any available data.
4 A joint probability can have a value greater than 1
Answers
The false statement is that if A and B are mutually exclusive events, then P(A | B) = 0. The correct answer is option 2.
When events A and B are mutually exclusive, it means that they cannot occur simultaneously. In this case, the conditional probability P(A | B), which represents the probability of event A occurring given that event B has occurred, will always be 0 because the occurrence of event B makes event A impossible.
This is because the events are mutually exclusive, and if one event has occurred, the other cannot occur. Therefore, the probability of event A happening given that event B has occurred is 0.
The correct answer is option 2.
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Assume that you are the sales manager of a soap-manufacturing company. Your supervisor has asked you to present the sales data of the various products for last quarter. You have to communicate information about the sales turnover in different zones. Which business documents will you prepare for this task and what guidelines will you follow?
Answers
Answer:
Sales data mostly contains monthly figures and will be best represented in a tabular form. I will use a word processor to create a table and enter the data corresponding to each month. To show the sales figures in different zones, I will use a bar graph. The bars in the graph will allow the audience to visualize the difference in sales figures in the different zones.
While creating the word document, I will keep the following in mind:
The report should precisely communicate only sales information.
The report should be short and brief, but also contain all the necessary information.
The report should be directed at a particular set of team members.
The report should contain visual aids to help explain the statistics.
Explanation:
plato/edmentum's sample answer