Cash dividends, which entail a corporation using available cash and paying it out to shareholders, are well-known to most investors.
Even while the accounting isn't always as simple as it is with cash dividends, adjustments must still be made to the company's balance sheet when dividends are paid in shares of stock. Prior doing that, we'll go over the relevant accounting difficulties and calculate how retained earnings respond to a stock dividend.
A firm effectively distributes earnings it has held to shareholders when it pays a dividend. Cash dividends decrease the amount of cash on the asset side of the balance sheet, and they also have an equivalent impact on the retained earnings in shareholder equity.
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Determine which of the following statements best describes the control principle as it relates to an accounting information system. Multiple choice question. The principle prescribes that management should verify all transactions before they are entered into the accounting system. The principle prescribes that an accounting information system have internal controls. The principle describes the U. S. GAAP rules of double entry accounting within an accounting system. The principle outlines the rules regarding when revenue should be recognized within an accounting system.
Answer:
The principle prescribes that an accounting information system have internal controls.
Explanation:
The statement which best describes the control principle as it relates to an accounting information system is that, the principle prescribes that an accounting information system have internal controls.
Answer:
The principle prescribes that an accounting information system have internal controls.
Explanation:
Because it is the "Correct Answer"
The founders of the U.S. wanted to avoid establishing a permanent aristocracy or group of wealthy families who could control a great deal of the nation’s wealth. How is this idea related to estate and gift taxes?
Answer:
There are two points that I would like to single out that are very similar. First by implementing tax and gift taxes, Founding Father wanted to weaken families and business of that time, since there was a threat that rich families could become permanent aristocracy which over time could lead to the point where that families will rule the US. Second, by implementing those two taxes, government is taking a share from receivers since the receivers are getting some good that they did not earn it, they have just received it as a gift or as an estate. This way inheritance or gift would be of a much lesser value then it was before someone’s death or before someone made a gift. This was important because wealth of powerful families would just accumulate and grow so government of that time, strictly out of political reasons, prescribed those two taxes, so that the wealth will be smaller of value after tax.
The idea of avoiding an aristocracy by the founders of USA is related to estate and gift taxes because:
There was a need to reduce the influence of the wealthyAccording to the given question, we are asked to show the link which the founders of America had to preventing aristocracy and imposing estate and gift taxes.
As a result of this, we need to remember than an aristocracy is a government based on the wealthy and influential members of the society and this was one of the things which the Founding Fathers of America sought to prevent.
With this in mind, we can see that they imposed gift and estate taxes which was specifically targeted at the extremely wealthy so that their influence would be reduced and the country would not become an aristocracy.
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А ________
is a number of connected activities that accomplish a course of action
campaign
contest
commission
Answer:
commisom is the answer to your question
Nederlander's customers are mostly women in the age group of 30 to 59 years with an annual household income of approximately $200,000. The company's Audience Rewards program appeals to its major partners because they want to get access to Nederlander's customers. The partners use the information about the customers for the _______ step of their personal selling process.
The partners use the information about the customers for the Prospecting step of their personal selling process.
Finding and investigating prospective consumers who are likely to make a purchase is the practice of prospecting.
The data from Nederlander's clients can be used by the partners to identify the clients who are most likely to make a purchase. They may more effectively target their marketing and sales activities thanks to this data. They can also tailor their offers and promotions to the needs and tastes of the customer.
The partners may create more successful sales tactics and raise their chances of success by understanding their clients.
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Select the appropriate characteristics of the executive information system in the four-level pyramid model.
Characteristics of Executive Information Systems
Most organizations use different types of information systems to manage their operations. The executive information system is a knowledge-based interactive system. This type of system helps managers analyze the environment in which the organization operates, identify long-term trends, and plan appropriate courses of action. The processing stage includes summarizing, simulating, and drilling down. Information comes from internal management information systems or transaction processing systems. These systems revolve around internal information flow and the final output is in the form of summary reports, graphs, or plots.
The system helps managers analyze the environment in which the organization operates, identifying long-term trends and planning appropriate courses of action.
What is an executive information system?It corresponds to a tool to support managerial decision-making by providing optimized access to large volumes of information from the micro and macro organizational environment.
Therefore, the executive information system assists managers in making decisions in line with organizational objectives.
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The next time you need to make a choice, your brain will use what what method?
Answer:
Imagine you have just flicked a lighter. If you don’t see the flame, you will naturally try a second time. If after the second attempt it does not strike a flame, you will repeat your action again and again until it does. Eventually, you’ll see the flame and you’ll know that your lighter works. But what if it doesn’t? How long are you going to flick the lighter until you decide to give up?
Our everyday life is full of such decision dilemmas and uncertainty. We constantly have to choose between options, whether we make the most ordinary decisions – should I continue flicking this lighter? – or life-changing choices – should I leave this relationship? We can either keep on doing what we are already used to do, or risk unexplored options that could turn out much more valuable.
Some people are naturally inclined to take more chances, while others prefer to hold on to what they know best. Yet being curious and explorative is fundamental for humans and animals to find out how best to harvest resources such as water, food or money. While looking at the Belém Tower – a symbol of Portugal’s great maritime discoveries – from my office window, I often wonder what drives people to explore the unknown and what goes on in their brains when weighing pros and cons for trying something new. To answer these questions, together with Dr. Zachary Mainen and his team of neuroscientists, we investigate how the brain deals with uncertainty when making decisions.
Explanation:
It is well known that the decision-making process results from communication between the prefrontal cortex (working memory) and hippocampus (long-term memory). However, there are other regions of the brain that play essential roles in making decisions, but their exact mechanisms of action still are unknown.
What is the best idea when you are filling out tax forms for the very first time?
A. Rely on your own education and do your best with the forms.
B. Have someone who has experience check your
returns before you file.
C. Go directly to the IRS and have them help you fillout your forms.
D. Have your local bank fill out your forms for you.
Answer:
B. Have someone who has experience check your returns before you file.
Explanation:
When filing returns for the first time, It is advisable to seek assistance from a more experienced person. The tax authority may penalize a taxpayer for errors of returns. Having someone experienced to check your returns before the filling is the best idea among the options provided
Bank A offers a 2-year certificate of deposit (CD) that pays 10 percent compounded annually. Bank B offers a 2-year CD that is compounded semi-annually. The CDs have identical risk. What is the stated, or nominal, rate that Bank B would have to offer to make you indifferent between the two investments
If Bank A offers a 2-year certificate of deposit (CD) that pays 10 percent compounded annually, Bank B has to offer a 9.77% stated rate to make the investors indifferent between the two investments.
Let's assume the present value of the investment is $1. Thus, Bank A will pay $1.1 at the end of the first year (\(\$1 \times 10\%\)) and $1.21 (\(\$1.1 \times 10\%\)) at the end of the second year. On the other hand, Bank B will pay $1.05 at the end of the first year (\(\$1 \times 5\%\) semi-annually) and $1.1025 (\(\$1.05 \times 5\%\) semi-annually) at the end of the first year.
The semi-annual interest rate can be found as follows:
\(\$1.05 (1 + R)^2 = \$1.1\). The semi-annual interest rate (R) turns out to be 2.393%, which makes the stated annual rate of Bank B as follows:
\((1 + 2.393\%)^2- 1 = 4.89 \%\).
So, the stated rate of Bank B = 4.89%. Thus, Bank B has to offer a stated rate of 9.77% (twice the semi-annual rate) to make the investors indifferent between the two investments.
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To make you indifferent between the two investments, Bank B would have to offer a stated or nominal rate of approximately 9.95 percent compounded semi-annually.
To determine the equivalent rate offered by Bank B, we need to calculate the effective annual rate (EAR) for both banks and find the rate that makes the investments equivalent.
For Bank A, the stated rate is 10 percent compounded annually, so the EAR is also 10 percent.
For Bank B, the stated rate is unknown. We can use the formula for the EAR compounded semi-annually to find the equivalent rate:
EAR = (1 + (r/n))ⁿ⁻¹
Let's assume the stated rate for Bank B is 'r'. Since the compounding is semi-annual, 'n' is 2. We want to find the rate that makes the EAR equal to 10 percent.
10% = (1 + (r/2))ⁿ⁻¹
Solving this equation, we find that 'r' is approximately 9.95 percent when rounded to two decimal places.
Therefore, Bank B would have to offer a stated or nominal rate of approximately 9.95 percent compounded semi-annually to make you indifferent between the two investments.
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If a stock you buy is $50 per share and pays $2 per year in total dividends;
what is the dividend yield of the stock?*
Answer:
4%
Explanation:
Dividend yield shows the dividends paid out annually as a percentage of the share market price.
The formula for calculating dividend yield is the annual dividend per share/market value per share.
Dividend yield = dividend/ market share price x 100
Dividend yield = 2/50 x 100
Dividend yield = 0.04 x 100
Dividend yield = 4%
Why is seed financing very risky? a.The PEI deals with the banking system in this phase. b. Projects you will only find only successful ones. c.In order to find a successful project, the PEI will have lost a lot of money on other losing projects.
The correct answer is option C that is in order to find a successful project, the PEI will have lost a lot of money on other losing projects.
Seed Financing is one of the steps in raising a successful startup into a company or brand. It is the initial step, and it involves the process of capital raising. It is also known as Seed funding, seed capital or seed money. It is quite informal as compared to the other forms of financing such as venture capital. This financing technique is done to support the initial finance building of any startup or company. For example, the elements from seed financing can be used in research purposes, development of prototypes, operational expenses and even in legal matters. Since it involves investment in the early stage it is considered as the riskiest as no one knows whether the company will flourish or sink.
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Custom Motors' account with Widgets, Inc. Has an opening balance of $1,200. They make four purchases totaling $1,500, receive a $400 credit for returned widgets, and make a payment of $2,000. What amount will go into the schedule of accounts for Custom Motors? A. $300 B. $1,500 OC. $1,100 D. $2,000
Answer:
A. $300
Explanation:
The computation of the amount will go into the schedule of accounts for Custom Motors is shown below;
= Opening balance + purchase made - credit received - payment made
= $1,200 + $1,500 - $400 - $2,000
= $300
Hence, the amount will go into the schedule of accounts for Custom Motors is $300
Therefore the option a is correct
And, the same would be considered
Answer:
A 300
Explanation:
can someone tell me what car u like bc i need inspo, like a V6 or something
Answer:
My personal favs are the Ford GT 2017, the Lamborghini Veneno, the Aston Martin Vulcan, and the Koenigsegg Jesko.
Jay Harrod and 2 trainees were sent to a 2 day sales seminar. The registration fee was $165 per person. Training materials cost $35 per person. Harrod earns a yearly salary of $52,000 and the 2 trainees earn $14.50 per hour each for a standard 40 hour work week. What were the total training costs?
Answer:
$1,232
Explanation:
the training costs include:
registration fees = $165 x 3 = $495
training materials = $35 x 3 = $105
trainees' wages = 2 x 8 x $14.50 = $232
Harrod's wage = ($52,000 / 52 weeks) x 2/5 days = $400
total training cost = $1,232
Employees must be paid their normal salary when they attend training sessions.
why it is important to prepare a bank reconciliation statement at the end of each month
Explanation:
The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.
you buy a new car for $46,000. what do you think is the average dollar amount of depreciation after 1 year
It is difficult to estimate the average dollar amount of depreciation after 1 year on a new car, as it can vary depending on several factors such as the make and model of the car, the condition of the car, the mileage driven, and the local market conditions.
The first few years of ownership are typically when new cars depreciate the most noticeably. A new car can lose between 20 and 30 percent of its value in the first year alone, with an average loss of roughly 20 percent, according to Kelley Blue Book. The average dollar amount of depreciation in your situation would therefore be $46,000*20% = $9,200. It's crucial to keep in mind that this is only an estimate and that the actual depreciation may vary depending on the aforementioned factors. It's also vital to remember that expensive and luxury vehicles may lose value more slowly.
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Daniel is the vice president of an insurance company that sells workers' compensation insurance. Recently, the company has identified problems of cost control in all of its offices. Daniel formed a team composed of the sales managers of all the four regions, along with some staff members from the company's informational technology and administration departments, to study the problem and make recommendations. This team is an example of a:
Answer:
Task force
Explanation:
A task force is defined as a group or unit that exists to address a particular issue or set of issues.
They come together to formulate solutions to a problem.
In the given scenario there was problems of cost control in all of the offices.
A team was formed specifically to solve this problem so it is a task force. The make up of the team was sales managers of all the four regions, along with some staff members from the company's informational technology and administration departments.
It is not a command group as the managers do not have the same supervisor or manager.
ceteris paribus, a decrease in the demand for loans
A. drives the interest rate down.
B. drives the interest rate up.
C. might not have any effect on interest rates.
D. results from an increase in business prospects and a decrease in the level of savings. E. results from an increase in business prospects and a increase in the level of savings
Ceteris paribus, a decline in demand for loans lowers interest rates. Because there will be more lenders than borrowers in the market when the demand for loanable money declines, this will result in lower interest rates. As a result, a balance between supply and demand can be achieved through excess supply and decreased demand. Hence, option a) is correct.
The Latin expression ceteris paribus, which means "keeping other things constant," is frequently translated into English as "everything else being equal."
When all other variables are held constant, it serves as a concise indication in the economics of the impact one economic variable has on another. To describe relative market trends and to create and evaluate economic models, many economists rely on ceteris paribus.
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Good evening! Did you eat today? Did you drink water today? Did you get outside for some fresh air or even anytime to chill? Did you make sure you are healthy? If you answer no to any of these questions.. please get some to food, water, fresh air or even time to chill. Please take care of yourself! Bye! :)
Answer:
I ate an egg sandwich. I drank some water. I went outside for a short walk.
Explanation:
Thanks for asking :)
Because the monopolistically competitive firm faces a ________ demand curve for its product, it ________ the price of its output.
Because the monopolistically competitive firm faces a downward-sloping demand curve for its product, it has some control over the price of its output.
In this market structure, firms can differentiate their products from competitors through branding, marketing, or product differentiation. As a result, each firm has a certain degree of market power, allowing them to have some influence on the price. However, because there are many close substitutes available, firms cannot significantly raise prices without losing a significant number of customers.
Thus, the firm must consider the price elasticity of demand when making pricing decisions.
Monopolistically competitive firms have some control over the price of their output due to the downward-sloping demand curve, but they must take into account the competitive nature of the market to avoid losing customers.
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Consumer surplus will _____ when a monopolist goes from single-price monopoly to perfect price discrimination.
Consumer surplus will increase when a monopolist moves from a one-price monopoly to perfect price discrimination.
What is a monopoly?It corresponds to a market structure where, for some reason, there is only one company offering a product or service in the sector, which means that it has greater control over prices and offers.
Therefore, in a situation of perfect price discrimination, the consumer's surplus will increase, because he has the right to choose to consume from the company that offers the price most in line with his needs.
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(Complex present value) You are trying to plan for retirement in 12 years, and currently you have $110,000 in a savings account and $330,000 in stocks. In addition, you plan on adding to your savings by depositing $10,000 per year in your savings account at the end of each of the next 6 years and then $20,000 per year at the end of each year for the final 6 years until retirement. A. Assuming your savings account returns 4 percent compounded annually, and your investment in stocks will return 9 percent compounded annually, how much will you have at the end of 12 years? (Ignore taxes. ) b. If you expect to live for 18 years after you retire, and at retirement you deposit all of your savings in a bank account paying 7 percent, how much can you withdraw each year after retirement (18 equal withdrawals beginning 1 year after you retire) to end up with a zero balance upon your death? a. If your savings account returns 4 percent compounded annually, how much will you have at the end of 12 years in your savings account? (Ignore taxes. ) $ 392,696 (Round to the nearest cent. ) If your investment in stocks will return 9 percent compounded annually, how much will you have at the end of 12 years for your investment in stocks? (Ignore taxes. ) (Round to the nearest cent. )
After 12 years, the total balance will be $1,307,212.63. To end up with a zero balance upon your death, you can withdraw $126,628.52 per year for 18 years after retirement.
To find the future value of the savings account and stocks, we can use the formula for the present value of an annuity:
\($PV = C \cdot \frac{(1 - (1 + r)^{-n})}{r}$\)
where PV is the present value of the annuity, C is the regular payment made at the end of each period, r is the interest rate per period, and n is the number of periods.
For the savings account, we have:
PV = $110,000
C = $10,000 for the first 6 years, then $20,000 for the next 6 years
r = 4% per year
n = 12 years
Using the formula, we get:
\(PV = $110{,}000 + $10{,}000 \cdot \frac{(1 - (1 + 0.04)^{-6})}{0.04} + $20{,}000 \cdot \frac{(1 - (1 + 0.04)^{-6})}{0.04} \cdot (1 + 0.04)^6$\)
PV = $110,000 + $71,029.51 + $187,777.09
PV = $368,806.60
So after 12 years, the savings account will have a balance of $368,806.60.
For the stocks, we have:
PV = $330,000
r = 9% per year
n = 12 years
Using the formula, we get:
\(PV = $330,000 \times (1 + 0.09)^{12\)
PV = $938,406.03
So after 12 years, the stocks will have a balance of $938,406.03.
Adding the balances of the savings account and stocks, we get the total balance after 12 years:
Total balance = $368,806.60 + $938,406.03
Total balance = $1,307,212.63
Therefore, after 12 years, the total balance will be $1,307,212.63.
b. To find the annual withdrawal amount, we can use the formula for the present value of an annuity:
\($PV = C \cdot \frac{(1 - (1 + r)^{-n})}{r}$\)
where PV is the present value of the annuity, C is the regular payment made at the end of each period, r is the interest rate per period, and n is the number of periods.
In this case, we want to find the withdrawal amount such that the total withdrawals over 18 years will equal the balance at retirement, which is the total balance we calculated in part a: $1,307,212.63. We can use a trial-and-error method to find the withdrawal amount that satisfies this condition.
Let x be the annual withdrawal amount. Then the present value of the annuity is:
\($PV = x \cdot \frac{(1 - (1 + 0.07)^{-18})}{0.07}$\)
Setting PV equal to the total balance, we get:
\($1{,}307{,}212.63 = x \cdot \frac{(1 - (1 + 0.07)^{-18})}{0.07}$\)
Solving for x, we get:
\(x = \frac{1{,}307{,}212.63}{\frac{(1 - (1 + 0.07)^{-18})}{0.07}}$\)
x = $1,307,212.63 / 10.31563
x = $126,628.52 (rounded to the nearest cent)
Therefore, you can withdraw $126,628.52 per year for 18 years after retirement to end up with a zero balance upon your death.
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Written evidence of the ownership of a piece of property
a
b
Non-verbal contract
Loan Sharking
Deed
c
d
Sublet
Answer:
Deed
Explanation:
A deed, when duly signed, is a written legal document that confers some property rights to the holder. A signed deed facilitates the transfer of property ownership to the new owner. The deed is written evidence that the signed holder has an interest or right to the property stated in the deed document.
The deed has to be entered into the public records; otherwise, ownership of the property will be vulnerable.
All the following are considered to be benefits of participative budgeting, except for: (please provide the necessary brief explanation to justify)
A. Individuals at all organizational levels are recognized as being part of a team; this results in greater support for the organization.
B. The budget estimates are prepared by those in directly involved in activities.
C. When managers set their own targets for the budget, top management need not be concerned with the overall profitability of operations.
D. Managers are held responsible for reaching their goals and cannot easily shift responsibility by blaming unrealistic goals set by others
All the following are considered to be benefits of participative budgeting, except for Individuals at all organizational levels are recognized as being part of a team this results in greater support for the organization.
The fact that participative budgeting is motivational, or more likely to inspire participants to work toward the organization's overall goals, is one of its main benefits. To flip a card, tap it.Through the concept of "participative budgeting, those who will be affected by the budget are actively involved in its preparation. With this strategy, lower-level managers feel more invested in the final budget.Cities all across the world employ participatory budgeting to include residents in decisions about government spending that affect or benefit them. Although the mechanics and procedures of participatory budgeting can differ, they often adhere to the following steps: community involvement and outreach.
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A,B and D are True C is False : It is not a benfit that Top management will not be concerned as targets set by managers.
A. True: Participatory budgeting encourages involvement from all levels, which boosts the organization's support.
B. This is accurate; those participating in the activity and in a position to offer more accurate estimations contribute to the budget inputs.
C. FALSE: Top management not caring about goals set by managers is not a benefit. The company's top management is in charge of overall performance, and they also have goals.
D. True: Managers of each function, profit centre, or cost centre are in charge of achieving the objective, and they cannot be held accountable for setting unrealistic goals since everyone has a say in how they are determined.
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You have three separate accounts with your bank that you can manipulate with online banking. Account "A" is a checking account with a $5,245.50 balance, Account "B" is a personal savings account with a $12,850.25 balance, and account "C" is a joint college savings account with your 12-year-old son. You move $2,500 from account "B" to account "A" to cover an unexpected bill. You also move 1.5% of the remaining balance in account "B" to account "C". What is left in account "B" after these transfers? A) $10,195 B) $10,350 C) $15,550 D) $25,000
Answer:
A) $10,195
Explanation:
This can be calculated as follows:
Amount in Account "B" = $12,850.25
Remaining balance after moving $2,500 from Account "B" to account "A" = Amount in Account "B" - $2,500 = $12,850.25 - $2,500 = $10,350.25
Amount moved from account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" * 1.5% = $10,350.25 * 1.5% = $155.25
Balance after moving 1.5% of the remaining balance in account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" - Amount moved from account "B" to account "C" = $10,350.25 - $155.25 = $10,195
Therefore, the correct option is A) $10,195.
Q. Rakesh owns a garment shop. He wants to expand his business but he is confused whether to appoint a manager or go in for a partner. Which is the better option and why?
Answer:
He should appoint a manager.
Explanation:
Rakesh must appoint a manager if he wishes to expand his business of garment shop. The manager will constantly strive to attain the desired goals on behalf of Rakesh. It will give sufficient time to him which he can use in looking for new target markets and customers, new products or items which he can add on to his shop, and much more. Meanwhile, the manager will lead the work and keep ensuring that the employees are working efficiently by motivating them. He will take all the necessary decisions to ensure that the intended profits and goals are achieved.
Write a one to two paragraph explanation that teaches how to complete each form. Be sure to write the instructions in "plain English" versus official federal government "speak."
Describe the documents you could provide to a new employer in order to establish your identity and/or employment eligibility. Provide a list of a minimum of four documents.
Submit your paragraph explanations for completing each form and the description of the documents for establishing your identity and/or employment eligibility as the assignment for this lesson.
Answer: So so sorry but i don't know!
Explanation:Have a great day
URGENT NEED HELP
Which of the following items appear on your credit report?
a. Your current income
b. A student loan you're still paying off
c. Your bank balance
d. Your GPA
4. List and explain the reserve requirements for banks in 2019 for checking accounts and savings accounts.
Answer:
love the points
Explanation:
ROI stands for return on investment. It is the ratio of incremental profit from an activity over the cost of the activity times 100. If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, what is the ROI?
Answer:
66.7%
Explanation:
ROI stands for return on investment. It is the ratio of incremental profit from an activity over the cost of the activity times 100. If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, the ROI is 66%.
What is return on investment?The return on investment estimates the loss and gain generated on the amount of money that is invested. The return on investment) is the percentage to analyze an organization’s profit or the earnings of different investment.
The return on investments estimates what we will receive back as compared to what we have invested. It can be used by a company to estimate inventory investments, pricing policy, capital equipment investments, etc.
If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, the ROI is 66%.
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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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