Graffiti Advertising, Inc. , reported the following financial statements for the last two years. (Enter your answer as directed, but do not round intermediate calculations. )

2014 Income Statement

Sales $ 573,700

Costs of goods sold 273,940

Selling & administrative 124,716

Depreciation 54,559

EBIT $ 120,485

Interest 19,670

EBT $ 100,815

Taxes 40,326

Net income $ 60,489

Dividends $ 11,300

Addition to retained earnings $ 49,189

GRAFFITI ADVERTISING, INC.

Balance Sheet as of December 31, 2013

Cash $ 13,490 Accounts payable $ 9,487

Accounts receivable 18,977 Notes payable 14,491

Inventory 13,811 Current liabilities $ 23,978

Current assets $ 46,278 Long-term debt $ 135,440

Net fixed assets $ 344,936 Owner's equity $ 231,796

Total assets $ 391,214 Total liabilities and owners’ equity $ 391,214

GRAFFITI ADVERTISING, INC.

Balance Sheet as of December 31, 2014

Cash $ 14,476 Accounts payable $ 10,529

Accounts receivable 21,082 Notes payable 16,483

Inventory 22,771 Current liabilities $ 27,012

Current assets $ 58,329 Long-term debt $ 153,700

Net fixed assets $ 406,294 Owner's equity $ 283,911

Total assets $ 464,623 Total liabilities and owners’ equity $ 464,623

Requirement 1:

Calculate the operating cash flow.

Operating cash flow $

Requirement 2:

Calculate the change in net working capital.

Change in net working capital $

Requirement 3:

Calculate the net capital spending.

Net capital spending $

Requirement 4:

Calculate the cash flow from assets. (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. )

Cash flow from assets $

Requirement 5:

Calculate the cash flow to creditors.

Cash flow to creditors $

Requirement 6:

Calculate the cash flow to stockholders. (Negative amount should be indicated by a minus sign. )

Cash flow to stockholders $

Answers

Answer 1

We can determine Graffiti Advertising, Inc.'s financial ratios for the years 2013 and 2014 from the financial documents provided:

Requirement 1: Calculate the operating cash flow.

Operating cash flow = EBIT + Depreciation - Taxes

Operating cash flow = $120,485 + $54,559 - $40,326

Operating cash flow = $134,718

Requirement 2: Calculate the change in net working capital.

Change in net working capital = (Current assets - Current liabilities)year 2 - (Current assets - Current liabilities)year 1

Change in net working capital = ($58,329 - $27,012) - ($46,278 - $23,978)

Change in net working capital = $31,317

Requirement 3: Calculate the net capital spending.

Net capital spending = Net fixed assetsyear 2 - Net fixed assetsyear 1 + Depreciation

Net capital spending = $406,294 - $344,936 + $54,559

Net capital spending = $115,917

Requirement 4: Calculate the cash flow from assets.

Cash flow from assets = Operating cash flow - Net capital spending

Cash flow from assets = $134,718 - $115,917

Cash flow from assets = $18,801

Requirement 5: Calculate the cash flow to creditors.

Cash flow to creditors = Interest - Net new borrowing

Cash flow to creditors = $19,670 - ($16,483 - $14,491)

Cash flow to creditors = $17,678

Requirement 6: Calculate the cash flow to stockholders.

Cash flow to stockholders = Dividends - Addition to retained earnings

Cash flow to stockholders = $11,300 - $49,189

Cash flow to stockholders = -$37,889

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Related Questions

if a company understates its ending inventory in the current period, what effect will this have on cost of goods sold in the following period?

Answers

If a company understates its ending inventory in the current period, this will cause cost of goods sold in the following period to be overstated.

When a company understates its ending inventory in the current period, it is recognizing less inventory than is actually present. This results in the cost of goods sold in the following period being higher than it would be if the company had reported the accurate ending inventory.

To illustrate this concept, assume a company had $10,000 of inventory on hand at the end of a period. If the company understates this ending inventory by $2,000 and recognizes only $8,000 in inventory, then the cost of goods sold in the following period will be overstated by $2,000 because the company is effectively accounting for more inventory than actually exists.

As a result, cost of goods sold in the following period will be overstated by $2,000.

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if 63 million workers produced gdp in mexico in 2018, using the bar graph, how much output did the average worker produce?

Answers

To calculate the output of the average worker, we need to divide the GDP by the number of workers. Using the bar graph, we can estimate that the GDP for Mexico in 2018 is approximately $2 trillion.

Therefore, the output of the average worker can be calculated as follows: Output of the average worker = GDP / Number of workers Output of the average worker = $2 trillion / 63 million Output of the average worker ≈ $31,746Therefore, the output of the average worker in Mexico in 2018 was approximately $31,746.

GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

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conducts focus groups to evaluate their marketing effectiveness; they are using which type of applied research? group of answer choices programmatic selective diagnostic evaluative none of the above

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Programmatic research is the type of applied research which involves conducting focus groups to evaluate marketing effectiveness. This type of research involves collecting data and analyzing it to draw conclusions and make informed decisions.

Programmatic research is an applied research type which involves collecting data and analyzing it to draw conclusions and make informed decisions. It is often used to evaluate the effectiveness of marketing strategies. This type of research involves conducting focus groups to gather data and analyze it. By gathering data through focus groups, it is possible to get an understanding of the target audience's opinions. The results of the research can be used to inform decisions about marketing strategies.

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what factors must a company consider when evaluating training resources? (select all that apply.) multiple select question. manager interest training expertise time budget

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When evaluating training resources, a company must consider various factors. Some of the factors that a company must consider when evaluating training resources are as follows:

Manager interest Training expertise Time Budget Explanation:

For a company to evaluate training resources, it is important to consider certain factors that help in the overall development of the organization. Below are the factors that the company must consider while evaluating training resources:

Manager interest: The company must consider the interest of the manager in the development of the employee's training.

Training expertise: It is important to evaluate the expertise of the trainers in order to determine if the trainers are capable of providing the required training.

Budget: Budget is also one of the important factors that the company must consider. The budget helps in determining the company's capacity to provide training resources.

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the point at which the tax saving from an additional dollar in debt financing is exactly balanced by the increased costs of bankruptcy associated with additional borrowing is the essence of the .

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The essence of the point at which the tax saving from an additional dollar in debt financing is exactly balanced by the increased costs of bankruptcy associated with additional borrowing is known as the "optimal capital structure". This is the point at which the net present value of the firm's tax saving from debt is equal to the expected costs of financial distress.

To put it another way, the optimal capital structure is the debt-to-equity ratio at which a company's value is maximized. This point maximizes the value of the firm's assets by taking into account the tax savings and other costs associated with leverage.

At the optimal capital structure, the total expected costs of financial distress (such as bankruptcy costs, bond default costs, and other costs associated with financing) are equal to the total expected benefits of using debt financing (such as tax savings and other costs associated with leverage).

The optimal capital structure can vary from one firm to the next, depending on a variety of factors such as industry, riskiness, size, growth rate, tax rate, and cost of debt. A firm's optimal capital structure is not necessarily the same for all industries.

To determine a firm's optimal capital structure, the cost of equity and cost of debt need to be compared. The cost of debt is the rate of interest a firm pays for borrowing, while the cost of equity is the return that shareholders demand for investing in a company. A firm's cost of debt is generally lower than its cost of equity due to the tax shield associated with debt.

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fred gets paid today. he expects a paycheck of $5. he has 8 shares ibm stock in the cookie jar at home with a current price of $1 each. he buys widgets at the store and usually they cost $1 each. his plan is take his paycheck, 25% of the stocks, which he will sell for $1 each, and buy 7 widgets. it turns out all prices doubled today. widgets are now $2, his paycheck is $10, and his stock is worth $2 each. he is still going to use all of his paycheck and 25% of his stock to buy widgets. how many widgets will he buy?

Answers

Fred, who has 8 shares of IBM stock in the cookie jar at home with a current price of $1 each, is expecting a paycheck of . He usually purchases widgets for $1 each from the store.

However, today, all prices have doubled. Widgets are now $2, his paycheck is $10, and his stock is worth $2 each. Regardless, he plans on using all of his paycheck and 25% of his stock to purchase widgets. Fred has $5 of the paycheck, and he can sell 2 shares of his stock (25% of 8 shares) for $2 each. $2 x 2 shares = $4 total.

Thus, Fred has a total of $9 ($5 + $4) to purchase widgets.(number of widgets that Fred can purchase = (total money that Fred has) / (cost of each widget))Now we have, the total money that Fred has is $9, and the cost of each widget is $2.$9 ÷ $2 = 4.5 widgets Therefore, he can buy only 4 widgets.

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All else equal, what happens to the price level and unemployment when investment spending by firms increases?

Answers

When investment spending by firms increases, "the price level tends to increase, while unemployment decreases" due to increased demand for labor and production.

This relationship is based on the theory that increased investment spending leads to an increase in aggregate demand, which causes an upward pressure on prices as demand exceeds supply. At the same time, the increased demand for goods and services also creates more job opportunities, reducing the number of unemployed workers seeking jobs.

Therefore, as firms invest more, the economy tends to experience a higher level of economic growth, which leads to lower unemployment and higher inflation.

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project risk is lowest during the: concept stage of the project life cycle. implementation stage of the project life cycle. termination stage of the project life cycle. development stage of the project life cycle.

Answers

The project life cycle stage where risk is lowest is when the project is terminated.

When in a project's life cycle is risk the greatest?

Stakeholders have the most power to affect project results during the project's first phases. Due to the huge proportion of unknowable elements, risk is at its maximum during this phase.

Why is a project considered low risk?

Minimal risk suggests that there won't be a significant negative effect on the organisation should the project fail. Hard implementation describes the resources needed to successfully accomplish the project, which include both a large number of people and a large sum of money or assets.

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aunt butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. the interest paid in the third year is

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The interest paid in the third year is $1,336, which can be calculated using the formula for the present value of an annuity.

To calculate the interest paid in the third year, we first need to find the amount of each annual installment. We can use the formula for the present value of an annuity to do this:

[tex]PV = PMT x\frac{(1 - 1/(1+r)^n) }{r}[/tex]

Where PV is the present value (the amount borrowed), PMT is the amount of each annual payment, r is the annual interest rate (8% or 0.08), and n is the number of payments (10). Plugging in the given values, we know:

PV = $19,500r = 0.08n = 10

So:

[tex]PMT= PV /\frac{(1 - 1/(1+r)^n) }{r}[/tex][tex]PMT= 19,500 /\frac{(1 - 1/(1+0.08)^10) }{0.08}[/tex]PMT = $3,050.87

So the amount of each annual payment is $3,050.87.

Now we need to find the interest paid in the third year. Since the payments are equal, we can use the formula for the future value of an annuity to find the amount of the remaining payments after two years:

[tex]FV = PMT x\frac{((1+r)^n - (1+r)^t) }{r}[/tex]

where FV is the future value, t is the number of years already passed (2), and all other variables are the same as before. Plugging in the values, we get:

[tex]FV = 3,050.87 x\frac{((1+0.08)^10 - (1+0.08)^2) }{0.08}[/tex]FV = $22,376.98

So after two years, Aunt Butch still owes $22,376.98. To find the interest paid in the third year, we subtract the remaining balance after two years from the total amount borrowed, and then calculate 8% of that amount:

Interest paid in third year = 0.08 x ($19,500 - $22,376.98)Interest paid in third year = $1,336.16

Therefore, the interest paid in the third year is $1,336 (rounded to the nearest dollar).

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on may 3, botit inc. purchased merchandise on account for $1,000, fob shipping point, with terms 1/10, n/30 from cellar, inc. on may 6, botit received the merchandise, along with an invoice for $1,000. in addition, $100 in shipping costs was owed to we deliver, inc. on may 12, botit paid all amounts owed, which amounted to

Answers

On May 12, Botit Inc. paid all amounts owed by purchasing merchandise, which amounted to a total of $1,100.

On May 3, Botit Inc. purchased merchandise on account from Cellar, Inc. for $1,000 with terms 1/10, n/30, FOB shipping point.

On May 6, Botit Inc. received the merchandise and an invoice for the same amount of $1,000. Additionally, $100 in shipping costs were due to We Deliver, Inc.

To calculate the total amount due on may 12,  first calculate the amount of the purchase from Cellar, Inc. The purchase was for $1,000 with terms 1/10, n/30, FOB shipping point.

This means that 1/10 of the total amount was due within 10 days, and the remaining amount was due within 30 days of the purchase date.

The amount due within 10 days is calculated by multiplying the total purchase amount of $1,000 by the percentage due within 10 days (1/10, or 0.1). Therefore, the amount due within 10 days is $100 (1,000 x 0.1).

The amount due within 30 days is calculated by subtracting the amount due within 10 days ($100) from the total purchase amount of $1,000. This results in an amount due within 30 days of $900 ($1,000 - $100).

In addition to the amount due from Cellar, Inc., Botit Inc. also owed $100 in shipping costs to We Deliver, Inc. Therefore, the total amount due is calculated by adding the amount due from Cellar, Inc. ($100 + $900) to the shipping costs ($100).

This results in a total amount due of $1,100 ($100 + $900 + $100).

In conclusion, on May 12, Botit Inc. paid all amounts owed by purchasing merchandise, which amounted to a total of $1,100 ($1,000 + $100).

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on october 1, 2024, heatherfield, incorporated lends $100,000 to another company and accepts a 24-month, 6% note. what is the amount of interest revenue heatherfield will report in its 2024 income statement?

Answers

Heatherfield will disclose $4,500 in interest income in its 2024 income statement.

What exactly does "interest income" mean?

Interest income is the money made through loans to other businesses. The expression is frequently used in a company's income statement to describe the interest earned on cash held in savings accounts, certificates of deposit, or other investments.

On a larger scale, interest income refers to the earnings that an investor's capital in a project or business generates. An easy and basic way to calculate it is to multiply the principal amount by the interest rate that is being applied, taking into consideration the number of months or years the money is being borrowed.

$100,000 × 6% × 9/12 = $4,500

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question number 2) government regulation influences the operations of most businesses. which regulatory topic did software ag's ceo briefly discuss?

Answers

Every industry is subject to certain government rules, and institutions are required to abide by these regulations.

What is the purpose of software AG?

Enterprise software integration solutions are offered by the technology firm Software AG (SAG). The company provides a number of platforms, including adabas & natural, apis, integration, and microservices platforms, as well as IoT and analytics systems.

What would you say about Software AG's growth plan?

Its declared objective is to grow through a "string of pearls" acquisition plan that emphasizes selective purchases that offer value in certain areas and are in demand by current clients.

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traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs. traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs. true false

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The given statement "traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs." is true because it helps to ensure that tasks are completed efficiently and effectively, and that everyone is working together towards a common goal.

Traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs.

Formal organization charts are a visual representation of this interconnected network, providing a clear and hierarchical view of the organization.

Clear and precise job descriptions and specifications are also an important aspect of traditional job design. These descriptions outline the specific tasks and responsibilities associated with each job, providing a clear understanding of what is expected of each employee.

Well-defined relationships between jobs are also a key feature of traditional job design. This involves creating clear lines of communication and responsibility between different roles within the organization.

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the installment income is sheridan's only temporary difference. what amount should be reported as a deferred incom tax liability

Answers

The amount that should be reported as a deferred income tax liability is $2,000. This is because the installment income is Sheridan's only temporary difference, and it is subject to income tax in the future. Let's break down the explanation further.

Installment income is a type of income that is received over time, rather than all at once. For example, if a person sells a property and agrees to receive payments over a period of several years, that income would be considered installment income. This type of income is treated differently for tax purposes because it is not all received in the same tax year. Income tax is a tax on income that is imposed by the government. Individuals and businesses are required to pay income tax on their taxable income.

The amount of income tax owed depends on a variety of factors, including the amount of income earned and the tax rate that applies to that income.A deferred income tax liability is an amount that a company owes in income tax but has not yet paid. This can occur when a company has a temporary difference between its book income (income reported on its financial statements) and its taxable income (income reported on its tax return).Sheridan's only temporary difference is the installment income.

This means that Sheridan's book income is less than its taxable income because it has not yet received all of the installment payments. However, Sheridan will eventually receive all of the installment payments and will have to pay income tax on that income. Therefore, Sheridan has a deferred income tax liability equal to the amount of income tax that it will eventually owe on the installment income.The amount of the deferred income tax liability can be calculated using the tax rate that will apply to the installment income when it is received.

In this case, the tax rate is 20%. The total amount of installment income is $10,000, so the income tax liability is $2,000 ($10,000 x 20%). Therefore, Sheridan should report a deferred income tax liability of $2,000 on its financial statements.

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kamiya plans to open a business writing software. while researching her strategy, kamiya discovered a profitable niche in children's educational software. how will pursuing this niche help kamiya outperform her competitors?

Answers

Focusing on a profitable niche like children's educational software can help Kamiya differentiate herself from her competitors, develop a loyal customer base, and ultimately grow her business more effectively.

Reduced competition: By targeting a niche market, Kamiya can reduce the number of competitors she faces. This can make it easier for her to stand out and attract customers.Customer loyalty: If Kamiya creates high-quality educational software for children, she can develop a loyal customer base. Parents are often willing to invest in their children's education, and if they find a product that works well for them, they are likely to stick with it.Higher profit margins: By focusing on a niche market, Kamiya can charge higher prices for her software. Parents are often willing to pay a premium for educational products that they believe will help their children succeed.Opportunities for innovation: A niche market can provide Kamiya with opportunities to innovate and develop new products. By understanding the specific needs of her target market, she can create products that meet those needs in unique and effective ways.

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A total of about 180,000180,000 terawatts of solar power reaches Earth's surface, of which about 0.06 \%0.06% is used by plants for photosynthesis. Of the energy that goes to photosynthesis, about 1 \%1% ends up stored in plant matter (including wood). (Recall that 11 watt =1=1 joule / \mathrm{s} ; 1/s;1 terawatt =10^12 watts.)a. Calculate the total amount of energy that becomes stored in plant matter each second.b. Suppose that power stations generated electricity by burning plant matter. If all the energy stored in plants could be converted to electricity, what average power, in terawatts, would be possible? Would it be enough to meet world electricity demand, which is of order 1010 terawatts?c. Based on your answer to b, can you draw any conclusions about why humans depend on fossil fuels, such as oil and coal, which are the remains of plants that died long ago? Explain.

Answers

1.08 terawatts of energy are stored in plant matter each second.

a. To calculate the total amount of energy stored in plant matter each second, follow these steps:

1. Calculate the energy used by plants for photosynthesis: 180,000 terawatts * 0.06% = 108 terawatts.
2. Calculate the energy stored in plant matter: 108 terawatts * 1% = 1.08 terawatts.

So, 1.08 terawatts of energy is stored in plant matter each second.

b. If all the energy stored in plants could be converted to electricity, the average power would be 1.08 terawatts. Comparing this to the world electricity demand, which is of the order of 10 terawatts, we can see that it is not enough to meet the demand.

c. Based on the answer to part b, we can conclude that humans depend on fossil fuels, such as oil and coal, because the energy stored in plant matter through photosynthesis is not sufficient to meet the world's electricity demand.

Fossil fuels are the remains of plants that died long ago and have been compressed and transformed over time, resulting in a much more concentrated source of energy. This allows us to generate more power than relying solely on current plant matter for energy.

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a differentiator will always seek out ways of distinguishing itself from similar competitors to justify price premiums greater than the costs incurred by differentiating. group of answer choices true false

Answers

Answer: The statement is generally true.

Differentiation is a strategy that businesses use to make their products or services stand out from similar offerings in the market. By highlighting unique features, benefits, or attributes, businesses can create perceived value for their offerings and justify price premiums that are greater than the costs incurred by differentiating.

However, it is important to note that the success of differentiation depends on several factors, such as the target market, the level of competition, the quality of the offering, and the effectiveness of marketing and branding efforts. Differentiation is not always a foolproof strategy and may not always result in sustained competitive advantage or increased profitability.

Explanation:

an economy in which elements of both private enterprise and government intervention are present is known as:

Answers

An economy that contains elements of private enterprise and government intervention is called a mixed economy.

A mixed economy is an economic system that combines elements of both capitalism and socialism. It has characteristics of both capitalism and socialism, but it is not purely either of them. It's a hybrid system that blends the best of both worlds.

What is a private enterprise? A private enterprise is a system in which businesses are owned and operated by individuals or groups of individuals. In a private enterprise system, the government has little or no involvement in the operation of businesses.

What is government intervention? Government intervention refers to the involvement of the government in the operation of the economy. The government may use its power to regulate or control economic activity, to redistribute income and wealth, or to provide public goods and services. Government intervention is often seen as necessary to correct market failures and ensure that the economy operates efficiently and fairly. However, too much government intervention can be harmful to economic growth and development.

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who at ucf is required to comply with the prohibition of discrimination, harassment and related interpersonal violence policy? group of answer choices faculty and staff only faculty, staff, students and ucf-affiliated vendors non-affiliates of ucf, such as visitors students only

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The group of people at UCF who are required to comply with the Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy are faculty, staff, students, and UCF-affiliated vendors.

Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy is an official university policy that prohibits acts of discrimination, harassment, sexual harassment, dating violence, domestic violence, stalking, retaliation, and any other forms of interpersonal violence.

It aims to prevent and promptly address all forms of violence and harassment, foster a safe, respectful, and inclusive learning and working environment, and ensure that the university community is free from any form of discrimination or harassment.

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the production possibilities curve bows out because question content area bottom part 1 a. production is inefficient. b. of the law of increasing additional cost. c. resources are not being fully utilized. d. production is efficient.

Answers

Production Possibilities Curve (PPC) bows out due to the law of increasing additional costs, making option (b) correct.

The Production Possibilities Curve, also known as the Production Possibility Frontier, is a graphical representation of a company's maximum capacity for producing two separate goods or services. It reveals the greatest quantity of one commodity that a country can produce at a particular time for a fixed amount of resources in a given economy.

Due to the scarcity of resources, the Production Possibilities Curve (PPC) shows how a company's limited resources can be best allocated to create different goods and services. The Production Possibilities Curve demonstrates the maximum number of goods that may be produced at a certain point in time, which is constrained by the country's resources, labour, and technology.

The PPC bows out because of the law of increasing additional costs. As a result, option (b) is correct. Increasing opportunity cost implies that producing more of one item necessitates a rising number of resources or sacrificing the production of another. Resources are not being fully utilized in option (c), which is incorrect.

The PPC would not be limited to its full capacity if production were ineffective.

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True/False: the primary function of financial accounting is to provide relevant financial information to parties external to business enterprises.

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The given statement is true because the primary function of financial accounting is to provide relevant financial information to parties external to business enterprises.

Financial accounting is the process of compiling financial statements that are intended to be used by decision-makers outside the organization, such as investors, regulators, and the general public. The primary goal of financial accounting is to provide information that is useful to these external users in making informed decisions about the organization's performance, liquidity, and potential for success.

Financial accounting is concerned with providing information to parties outside the company who have a vested interest in its financial health, such as shareholders, lenders, creditors, and regulators. It is critical for businesses to provide reliable, relevant, and timely financial information to these stakeholders because it can have a significant impact on their decisions.

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if the nominal interest rate is 8% and the real interest rate is 3%, then the inflation rate equals:

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The inflation rate is equal to 5%.

The nominal interest rate is the rate of interest that is quoted and publicized by the lender. It does not take into account the decrease in purchasing power due to inflation.

The real interest rate is the nominal rate minus the inflation rate. Therefore, if the nominal rate is 8% and the real rate is 3%, then the inflation rate is 5%.

To calculate the inflation rate, we must take the nominal interest rate minus the real interest rate. The nominal interest rate is the rate of interest that is advertised and publicized by the lender, while the real interest rate takes into account the decrease in purchasing power due to inflation.

In this example, the nominal interest rate is 8% and the real interest rate is 3%. By subtracting the real interest rate from the nominal interest rate, we get the inflation rate of 5%. This means that the inflation rate is 5% for this example.

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what is the term for the negative result of an organization raising the price of a product too far above the equilibrium

Answers

The term for negative result of an organization raising the price of a product too far above the equilibrium is "price ceiling" or "price floor."

What is a price ceiling?

A price ceiling is a government-imposed limit on the maximum price that can be charged for a particular good or service. The intention behind a price ceiling is often to make that good or service more affordable and accessible to consumers, especially those with lower incomes. Price ceilings are typically implemented during times of economic hardship or crisis, such as during a natural disaster or a recession. However, setting a price ceiling can have unintended consequences, such as shortages, decreased quality, and even a black market for the product or service. In some cases, businesses may stop producing or offering the good or service altogether if they cannot earn a profit under the price ceiling, which can worsen the situation for consumers.

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the announcement of an increase in the cash dividend should, according to mm, leads to an increase in the price of the firm's stock. true false

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The announcement of an increase in the cash dividend should, according to MM, leads to an increase in the price of the firm's stock.

MM, also known as the Modigliani-Miller theorem, is an influential economic theory on capital structure. It implies that the market price of a company is decided by its future profits and should be independent of the financing choices made to achieve those profits. When a company announces an increase in the cash dividend, it can lead to an increase in the price of the firm's stock. It is because the dividend payment is an essential component of a firm's value for its investors. Companies use dividend payments to return capital to shareholders and also as a way of signalling that the company is doing well financially, which makes it more attractive to investors. Therefore, an increase in the cash dividend can have a positive impact on the value of the firm's stock.

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what is an advantage of direct marketing? multiple choice question. it can be customized to match the needs of a target

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An advantage of direct marketing is that it can be customized to match the needs of a target audience.

What is direct marketing?

Direct marketing is a marketing strategy that involves communicating with customers directly without using intermediaries such as advertising, public relations, or salespeople. Companies use direct marketing to contact customers with targeted messages, encouraging them to make purchases, respond to surveys, or take some other action.

Direct marketing has several advantages, including:

Personalization - Direct marketing allows businesses to tailor their messaging to the needs and preferences of individual customers, providing a more personalized experience. This is important because customers are more likely to respond positively to messages that are relevant to their interests.Cost-effectiveness - Direct marketing is a cost-effective way to reach customers because businesses can target specific segments of the population with tailored messages.Improved response rates - Direct marketing has been shown to have higher response rates than traditional forms of advertising because it is more targeted and personalized.Measurability - Direct marketing campaigns can be easily tracked and measured, allowing businesses to determine the effectiveness of their messaging and adjust their strategies accordingly.Greater control - Direct marketing gives businesses greater control over the messages they send to customers, allowing them to tailor their messaging to specific segments of the population as needed.

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marketing research is recommended only when the benefits are possibly greater than the cost in a small market size. group of answer choices true false

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True. Marketing research is often recommended in small market sizes because it can help identify potential areas of growth and understand customer preferences.

Marketing research can help organizations make better, more informed decisions that will increase their return on investment. Additionally, marketing research can help uncover and identify opportunities for innovation, new products, and services that can give organizations a competitive advantage.

Ultimately, the benefits of marketing research in a small market size can outweigh the cost when the research is done in a systematic, targeted manner.

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in customer feedback surveys, rtc corp customers have indicated that they have a similar experience each time they interact with the company. this reflects success in which service quality dimension?

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In customer feedback surveys, RTC Corp customers have indicated that they have a similar experience each time they interact with the company. This reflects success in the consistency service quality dimension.


RTC Corp customers experiencing a similar experience each time they interact with the company reflects success in the service quality dimension of consistency.

Consistency is a service quality dimension that refers to the uniformity and reliability of the service. It is the extent to which a company offers dependable and accurate services, including availability, delivery, dependability, and reliability.

The consistency dimension of service quality encompasses the following:-

Keeping promises made to customersConsistency across channelsDependability and reliability of service deliveryQuality of service delivery

Therefore, this ensures that customers are satisfied with the services they receive and that they have a positive experience. So, the success of RTC Corp in the consistency dimension of service quality reflects its ability to meet customer expectations and provide high-quality services.

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what three things do businesses typically do when faced with increased risk from cross-border investments?

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Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.

Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.

Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.

By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.

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if the market price is $1,200, the producer surplus in the market is question 3 options: $100. $800. $400. $500.

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The producer surplus in a market is the difference between the price that a producer is willing to accept for a good or service and the actual market price. In this case, the market price is $1,200 and the producer surplus is $800.

To calculate the producer surplus, first identify the price the producer is willing to accept for the good or service. This is referred to as the producer's reservation price. The producer's reservation price is the highest price the producer is willing to accept for the good or service, so the producer surplus is equal to the difference between the reservation price and the market price.

In this case, the producer's reservation price is $2,000 and the market price is $1,200, so the producer surplus is $800. This can be written mathematically as follows:

Producer Surplus = Reservation Price - Market Price

Producer Surplus = $2,000 - $1,200

Producer Surplus = $800

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allocation of service department costs to producing departments is the most complex of the allocation phase of departmental cost allocation because of the likely presence of: multiple choice repetitive steps. manager bias. reciprocal flows. non-value adding activities. formula distracters.

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The allocation of service department costs to producing departments is the most complex of the allocation phase of departmental cost allocation because of the likely presence of reciprocal flows

The process of allocating service department costs to producing departments and products is referred to as departmental cost allocation. To provide a more accurate picture of the real costs of each product or service provided, many businesses allocate overheads to different departments or cost centers before passing them on to the cost object.

The allocation of service department costs to producing departments is the most difficult step in the departmental cost allocation process due to the possibility of reciprocal flows.When two or more service departments are allocated overheads using the sequential method, there is a possibility of reciprocal flow.

When one service department provides services to another department, the term reciprocal service is used. The allocation of overhead expenses is done to eliminate the impact of reciprocal services. Repetitive steps are the steps which are repeated over and over again.

In the context of departmental cost allocation, repetitive steps could be referring to the process of allocating service department costs to producing departments that needs to be done over and over again for different cost centers, products or services.A formula distracter is a term used in mathematics that refers to a term or concept that is introduced in a question to divert the attention of students from the key focus.

However, it is not applicable in departmental cost allocation as it is not a part of the process.

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