Wolfpack, Inc.provides goods and services to customers during the year totaling $100,000. Also during the year, customers are granted discounts, returns, and allowance of $20,000. At the end of the year, Wolfpack estimates that an additional $5,000 in discounts, returns, and allowances will occur next year as a result of sales transactions this year. What is the amount of net revenues Wolfpack will report in its current-year income statement
Answers
Answer: $75000
Explanation:
Net revenue is simply defined as the total amount of money that an economic entity such as an individual or firm makes from sales minus the direct expenses. The net revenue accounts for the refunds, price reductions, and the direct expenses.
From the question, we've been informed that Wolfpack, Inc.provides goods and services to customers during the year totaling $100,000 and that during the year, customers are granted discounts, returns, and allowance of $20,000. Lastly, Wolfpack estimates that an additional $5,000 in discounts, returns, and allowances will occur next year.
The amount of net revenues Wolfpack will report in its current-year income statement will be:
= $100,000 - $20,000 - $5,0000
= $75,000
Related Questions
What are some of the reasons why domestic policies change overtime?
Answers
Answer:
They changed as the USA entered the war.
Explanation:
American and domestic foreign policy during World
War 2 were linked in that once America entered the
war it had a significant impact on its economy.
When we say during World War 2 we must remember
that the USA did not enter the war until December
1941 after the attack on Pearl Harbour. Even then
there was no guarantee that they would become
involved in a war in Europe. It was Hitler who
declared war on the USA.
Prior to that American domestic politics
were dominated by the arguments between
interventionism and isolationism. President Roosevelt
had to tread a fine path in providing limited support to
the UK whilst being careful not to turn public opinion even more against involvement in a war thousands of miles away.
Japan's failure to deliver a knockout blow at Pearl Harbour meant that the US economy, on a war footing, was powerful enough to produce military hardware on a scale not seen before which would lead to victory in 1945 and the USA emerging as the most powerful country in the world.
Domestic policies change over time mainly due to changing societal values, economic conditions, and political influences. Society's evolving nature, economic developments, and shifts in political power greatly influence such changes.
Explanation:Domestic policies change over time due to a variety of reasons. The primary ones include changing societal values, economic conditions, and political influences. For instance, societal values evolve over time, which may either necessitate new policies or changes in existing ones to address contemporary issues. Economic conditions may influence policy changes for enhancing economic stability and growth. Changing political influences also play a significant role as different political parties with contrasting priorities and approaches to governance come to power.
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what step in the rational decision-making process involves assessing what worked and did not work about the process and solution
Answers
The step in the rational decision-making process which involves assessing what worked and did not work about the process and solution is defining the problem.
What is rational decision-making process?Rational decision can be described as the opposite of intuitive decision making.
It can be described as the strict procedure utilizing objective knowledge and logic and this also involves identifying the problem to solve, it hence The step in the rational decision-making process which involves assessing what worked and did not work about the process and solution is defining the problem.
In conclusion, Decision making serves as the process that involves consideration of choices through the identification of a decision.
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Answer:
the last step
Explanation:
i need help in accounts
Answers
Leach Inc. experienced the following events for the first two years of its operations:
Year 1:
1. Issued $10,000 of common stock for cash.
2. Provided $70,000 of services on account.
3. Provided $33,000 of services and received cash.
4. Collected $37,000 cash from accounts receivable.
5. Paid $12,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $680.
2. Provided $90,000 of services on account.
3. Provided $20,000 of services and collected cash.
4. Collected $72,000 cash from accounts receivable.
5. Paid $26,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.
Required:
a. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year1 .
b. Organize the transaction data in accounts under an accounting equation.
Answers
Answer:
Explanation:
1 events in general journal form and post them to Taccounts.(If no entry is required for a transaction/event, select "No journalentry required" in the first account field.)NoTransactionGeneral Journal Debit CreditA1 Cash ............10,000 Common stock.
........... 10,000 B2A ccounts receivable ..............78,000. Service revenue...........78,000 C3. Cash ............36,000. Service revenue ..........
36,000 D4 Cash ............69,000 Accounts receivable.............69,000 E5 Salaries expense...............38,000 Cash.............38,000 F6 Uncollectible accounts expense .........450. Allowance for doubtful accounts .....450 G7 Service revenue............114,000 Retained earnings..........114,000 H8Retained earnings............38,450 Uncollectible accounts expense............450 Salaries expense.......38,000
The assumption of constant variability of observations often breaks down in studies with cross-sectional data. Consider the model y = β0 + β1x + ɛ, where y is a household's consumption expenditure and x is its disposable income. It may be unreasonable to assume that the variability of consumption is the same across a cross-section of household incomes. This violation is called:
Answers
Assuming that consumption variability is constant over a range of household incomes may not be fair. Thus, this infraction is referred to as "changing variability."
Explain about the term changing variability?The degree to which the data points in either a statistical distribution as well as data collection deviate from the average value and from one another is virtually by definition the measure of variability.
This most frequently refers to the erratic nature of investment returns in financial terms. The Sharpe ratio, which calculates the excess return or risk of default per risky unit for an asset, is one indicator of reward-to-variability. In summary, the Sharpe ratio offers a statistic to assess the compensation received by an investor in relation to the entire risk involved in owning a certain investment.The stated question is-
Studies using cross-sectional data frequently have problems with the assumption of continuous observational variability. Think about the equation y = β0 + β1x + ɛ, where y is the consumption expense of a household and x would be its disposable income. Assuming that consumption variability is constant over a range of household incomes may not be fair.Thus, this infraction is referred to as "changing variability."
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The difference between your sales and your cost of goods sold is known as your what
Answers
Answer:
profit.
Explanation: its just right
Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:
Activity Cost Pool Activity Rate
Supporting direct labor $ 22 per direct labor-hour
Order processing $ 194 per order
Custom design processing $ 268 per custom design
Customer service $ 416 per customer
Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:
Standard Model Custom Design
Number of gliders 11 3
Number of orders 1 3
Number of custom designs 0 3
Direct labor-hours per glider 29.50 31.00
Selling price per glider $ 1,825 $ 2,490
Direct materials cost per glider $ 464 $ 584
The company’s direct labor rate is $16 per hour.
Required:
Using the company’s activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)
Answers
The total costs for Big Sky Outfitters is $6,566, The customer margin of Big Sky Outfitters is $14,123.
How to calculate the company’s activity-based costing system and the customer margin of Big Sky Outfitters.Calculating the costs for each activity:
1. Supporting direct labor:
Standard Model: 11 gliders x 29.50 direct labor-hours per glider x $16 per hour = $5,152
Custom Design: 3 gliders x 31.00 direct labor-hours per glider x $16 per hour = $1,488
2. Order processing:
Standard Model: 1 order x $194 per order = $194
Custom Design: 3 orders x $194 per order = $582
3. Custom design processing:
Custom Design: 3 custom designs x $268 per custom design = $804
4. Customer service:
Customer Service: 1 customer x $416 per customer = $416
Calculating the total costs for Big Sky Outfitters:
Total costs = Supporting direct labor + Order processing + Custom design processing + Customer service
Total costs = $5,152 + $194 + $804 + $416 = $6,566
Now, let's calculate the total revenues for Big Sky Outfitters:
Total revenues = (Number of gliders x Selling price per glider) - (Number of gliders x Direct materials cost per glider)
Total revenues = (11 x $1,825) - (11 x $464) + (3 x $2,490) - (3 x $584)
Total revenues = $20,075 - $5,104 + $7,470 - $1,752 = $20,689
Finally, let's compute the customer margin:
Customer margin = Total revenues - Total costs
Customer margin = $20,689 - $6,566 = $14,123
Therefore, the customer margin of Big Sky Outfitters is $14,123.
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which of the following divisions would you invest in heavily? cargo inspection freight forwarding railroad loading shipping
Answers
I would like to invest in freight forwarding. As it is assured that many different products and goods can be delivered to almost any area with minimal effort on your part.
For businesses of all sizes, freight forwarding is now far more effective and economical. Additionally, freight forwarders will take care of all the necessary paperwork for both domestic and international shipping. Lack of correct documentation could cause protracted delays since the goods might be stuck in customs or the bank might not release the money if the identity is missing. To facilitate a seamless transaction, all shipping and export documentation will be created by a professional. A freight forwarder is aware of all the necessary details and how to deal with any unforeseen problems that may develop.
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Select two ways of becoming a business owner. Compare the advantages and disadvantages and decide which of the two you would prefer.
Answers
Two ways of becoming a business owner are starting a business from scratch and buying an existing business.
Starting a business from scratch:
Advantages:
Freedom to make all the decisions about the business.
Ability to create a unique product or service.
No existing debt or liabilities.
Ability to control the company culture and hiring practices.
Flexibility to adjust the business model and pivot when necessary.
Disadvantages:
High risk and uncertainty in the early stages.
Significant time and effort required to establish the business.
Need to build a customer base from scratch.
Difficulty in obtaining financing without a proven track record.
Limited resources and expertise in some areas.
Buying an existing business:
Advantages:
Established customer base, products or services, and brand recognition.
Existing cash flow and revenue stream.
Existing staff and management in place.
Access to existing supplier and customer relationships.
Proven business model and historical financial data.
Disadvantages:
Possibility of inheriting existing debt and liabilities.
Need to adjust to the existing company culture and processes.
Potentially overpaying for the business.
Difficulty in making significant changes to the business model or culture.
Potential hidden problems or issues with the business.
In an informative essay, describe the effects of globalization on air pollution in China's largest cities.
Answers
Answer:
sorry I can't do it in informal essay but here's a tip
Choking – and dying – on globalization
China's export-oriented industrial spasm, powered largely by burning coal, has bequeathed it notoriously lethal air pollution, so much so that, according to one study, it contributes to the deaths of 1.6 million people per year (4,400 per day), or 17% of all deaths in the country.
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $14,000,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $15,821,074. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Compute the price of $15,821,074 received for the bonds by using the present value tables.
Present value of the face amount:
Present value of the semiannual interest payments:
Price received for the bonds:
Answers
Answer:
Present value of the face amount:
The face amount of the bonds is $14,000,000. To calculate the present value of the face amount, we need to use the present value of 1 table. The present value factor of $1 for 10 periods at 9% is 0.42240. Therefore, the present value of the face amount is:
Present value of face amount = $14,000,000 x 0.42240 = $5,913,600
Present value of the semiannual interest payments:
The bonds have a stated interest rate of 11%, and the interest is paid semiannually. Therefore, the periodic interest rate is 5.5% (11% / 2). The semiannual interest payment is calculated as:
Semiannual interest payment = Face amount of bonds x Periodic interest rate
Semiannual interest payment = $14,000,000 x 5.5% = $770,000
To calculate the present value of the semiannual interest payments, we need to use the present value of an annuity of 1 table. The present value factor of an annuity of 1 for 20 periods at 4.5% is 12.92527. Therefore, the present value of the semiannual interest payments is:
Present value of semiannual interest payments = $770,000 x 12.92527 = $9,953,482.90
Price received for the bonds:
The price received for the bonds is the sum of the present value of the face amount and the present value of the semiannual interest payments. Therefore, the price received for the bonds is:
Price received for the bonds = Present value of face amount + Present value of semiannual interest payments
Price received for the bonds = $5,913,600 + $9,953,482.90 = $15,867,082.90
Therefore, the price received for the bonds is $15,867,082.90.
Explanation:
What taxes in a paycheck will be exempted for a minor?
Answers
Answer:
0$
Explanation:
Answer:
Generally, if a minor's income does not exceed the standard deduction he or she will not be required to file a tax return. If the above scenario is true, then the minor can check the box on Form W-4 that classifies he or she as exempt from withholding.
Explanation:
Please post detailed answers to the following questions. Please use complete sentences.
Ben is starting an online store for rare musical instruments, and he is hoping to make it the kind of company that people are fighting to become part of. What are some of the things Ben might do to make this happen?
Answers
In order to make the online musical instruments store more popular and desirable in the market, Ben can:
1. Build a strong brand: Ben can invest in creating a strong and unique brand for his store.
This can include creating a catchy logo and slogan, using consistent colors and fonts across all products, and creating a unique brand voice that resonates with your target audience.
2. Build a sense of community: Ben can build a community around his store by hosting events and workshops that bring musicians and music lovers together. It can also create social media groups and forums where customers can share their knowledge and connect with like-minded people.
3.Overall, with a focus on offering unique products, building a strong brand, creating a sense of community, providing excellent customer service, and having a good understanding, Ben can do his online shopping for rare vehicles and find a company.
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1. Ranghu started business with cash $80,000, goods $40,000 and furniture $20,000.
2. Sold goods to Anna of the list price $2000 at trade discount of 10%.
3. Paid rent $800, Trade expenses $400and Travelling expenses $500.
4. Deposited to AC bank for opening a current account $25,000.
5. Bought goods from Kamal for $20,000 at a trade discount of 10% and Cash discount of 2%. Paid 60% amount immediately.
Answers
Answer:
1.Raghu start the business with three things i. e cash, goods, furniture etc. Something that come in the business is debited. All these things are done by the properitor. Hence all these things are goes to Capital account. JOURNAL ENTRY WILL BE!!!! Cash a / c . Dr. 80,000 Purchase a / c . Dr. 40,000 Furniture a / c . Dr 20,000 ..To Capital a/c........... 1,40,000 (being started business with cash, goods and furniture.)
2.The answer will be Rs.1800 Explanation: 2000^ * 10\%=200 2000-200=18003.Answer will be $7004.250005.5000 please mark as brainliestConsider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of bagels in the market, respectively. If the change given in each problem is the only change that happened (all other things are held constant), what will be the effect on the equilibrium price and quantity of bagels? Please draw a graph to explain.
A) The price of cream cheese, complementary goods to bagels, increases.
B) The price of croissants, substitute goods to bagels, decrease
C) The economy experiences an overall decrease in income (Suppose that bagel is an inferior good).
Answers
Answer:
please refer to attachment for more explanation
Explanation:
a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.
b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.
c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.
Here are simplified financial statements for Watervan Corporation:
1.) Calculate Watervan’s economic value added (EVA).
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
2.) What is the company’s return on capital? (Use start-of-year rather than average capital.)
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
3.) What is its return on equity? (Use start-of-year rather than average equity.)
Note: Enter your answer as a percent rounded to 2 decimal places.
Answers
Based on the financial statements given for Watervan Corporation, the Economic Value Added is $54.501 million.
What is the Economic Value Added?This can be found by the formula:
= (EBIT x (1 - Tax rate)) - (Cost of capital x Capital)
Tax rate is:
= 20 / 97 x 100
= 20.6%
Capital invested:
= Equity + Long term debt
= 256 + 121
= $377 million
Economic value added is:
= (109 x (1 - 20.6%)) - (8.5% x 377)
= $54.501 million
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DESCRIBE THE FUNCTIONS OF
PRELIMINARY DATA GATHERING?
Answers
Preliminary data gathering involves collecting and analyzing relevant information to establish a foundation for research or decision-making, including identifying objectives, assessing data availability, etc.
What are the Functions of Preliminary Data Gathering?Preliminary data gathering encompasses the initial acquisition and evaluation of pertinent information, serving as a basis for research or decision-making. It aids in defining project scope, goals, and needs, while also assessing data availability and quality.
This stage assists researchers and decision-makers in gaining insights, assessing project feasibility, recognizing potential obstacles, and formulating a strategic plan for subsequent data collection and analysis.
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Pls, the meaning of warranty
Answers
Answer:
A warranty is a written promise by a company that, if you find a fault in something they have sold you within a certain time, they will repair it or replace it free of charge.
3. ABC suppliers have an idea that an organization should be in good terms with the community, customers, and potential customers. Explain what public relations is. [2x1] [2]
Answers
Public relations (PR) is the practice of managing the communication between an organization and its various stakeholders, including the community, customers, potential customers, employees, investors, and the media.
The goal of Public relations (PR) is to create and maintain a positive image of the organization in the eyes of its stakeholders, enhance its reputation, and build relationships with key stakeholders.
PR professionals use various tools and strategies, such as press releases, media outreach, events, and social media, to communicate the organization's message and engage with its audiences.
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Which of the following is not an example of a multichannel retailer?
Answers
Answer:A
thats the one
Explanation:
McDonals is the example of multichannel retailer as the company is providing burgers and fries to its different outlets and in diffrent food ordering sites in many countries.
What is multichannel retailer?The technique of selling similar products over multiple channels and platforms is known as multichannel commerce.
The platforms can be both online and offline, with different channels such as brick and mortar stores, online stores, mobile stores, and mobile app stores.
Thus, McDonals is the example of multichannel retailer.
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Question 4 of 10
Which of the points (s,t) is inside the shaded region of the set of inequalities
shown below?
A. (20,8)
B. (1,10)
C. (-5,15)
D. (7,8)
8≤12-0.25t
s212-t
s≤20-t
820
120
Answers
May you send a picture of the shaded area Inside the comment area
I will be more than glad to help
Answer:
(7,8)
Explanation:
Aaron Mahnke is the host of Lore, which posts true life scary stories biweekly. Users love Lore because they enjoy listening to scary stories. Marketers like Lore because they can
sponsor content and become affiliated with this popular show. Users can access Lore by going onto the site and accessing the audio content, or they can subscribe through iTunes
and receive new content automatically. Lore is most likely a
a.widget.
b. social network.
O c. virtual game.
d. video sharing site.
e. podcast.
Answers
Managers use all of the following types of resources to achieve organizational goals except
Answers
Managers use all of the following types of resources to achieve organizational goals except: A. International.
Who is a manager?A manager can be defined as the person that help to oversee a company or an organization day to day business operation and activities by ensuring that their is smooth business operation.
Managers tend to often make use of the below resources to achieve their organizational goals and objectives:
PhysicalHumanFinancialInformationTherefore we can conclude that the correct option is A.
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The complete question is:
Managers use all of the following types of resources to achieve organizational goals EXCEPT
A. International
B. Physical
C. Human
D. Financial
E. Information
ABC Restaurant specializes in rice noodles and has driven up their economic profit, causing competitors to enter the restaurant market. Illustrate what will happen to the demand for ABC Restaurant's products and services, assuming that it is operating in a monopolistically competitive market.
Answers
Answer: See explanation
Explanation:
Monopolistic competition is regarded to as a market structure where the products that are sold in the market are closely differentiated and also there is a free entry and exit as new firms can enter the market.
It should be noted that in the short run, the firm will make economic profits and this will increase but in the long run when more firms enter the market, this will bring about more competitors and this will bring about a rose in the supply of rice noodles.
Since there's an increase in the supply of rice noodles, the price of the product will reduce and this will eventually result in ABC Restaurant earning a normal profit just like every other form in the market.
describe the 5 office layout.
Answers
Answer:
The five most popular would be the...
Cubicle Office layout. This is the most popular and is basically a box with an opening.
Open Office layout. This is several rows of large desks. By definition, it is not very enclosed.
Co-Working Office layout. Less common, these are offices rented out to employees by third parties.
Team-Cluster Office layout. For teams working on something, this is a good way to go. One table where you can easily work together on things with each other as you go.
Hybrid Office layout. This one is a mix of a few others and customizable to a workplace's specific needs. Some of these don't even feel like offices!
221 HW4 Ch 21
Question 6 of 10
- / 1
Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 125.)
Cost Reconciliation
Cost accounted for
Transferred out
$
Work in process
Materials
$
Conversion costs
Total cost accounted for
$
eTextbook and Media
Answers
The cost reconciliation schedule:
Cost accounted for Transferred out $54,000Work in process Materials $36,000Conversion costs $25,500Total cost accounted for $115,500eTextbook and Media $0Transferred out: The transferred out cost is the sum of the materials, labor, and overhead. In this case, it is $36,000 (materials) + $88,500 (labor) + $54,000 (overhead) = $178,500.
Work in process - Materials: The work in process cost for materials is $36,000.
Conversion costs - Work in process: The work in process cost for conversion costs is calculated by multiplying the percentage of completion for conversion costs (50%) by the equivalent units of production for conversion costs (57,000). Therefore, it is 0.5 * 57,000 = $28,500.
Total cost accounted for: The total cost accounted for is the sum of the transferred out cost, work in process cost for materials, and work in process cost for conversion costs. In this case, it is $54,000 + $36,000 + $25,500 = $115,500.
eTextbook and Media: The cost of eTextbook and Media is not specified in the provided information. If there is no cost associated with eTextbook and Media, it would be $0.
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1. Concave Systems presently has earning interest and taxes of
$6 million. Its interest expenses are $1,000,000 a year, and it
pays $600,000 in annual dividends to its shareholders. Concave
has 300, 000 common shares outstanding, and its tax rate is 40
percent. Its annual capital expenditures are $900,000. Concave's
present priceto-earning ratio is 8.
a. Calculate the company's earnings per share and interpret.
b. Calculate the company's dividend payout ratio and interpret. 目
c. Calculate the company's dividend yield and interpret.
Answers
The company's earnings per share is 20, dividend payout ratio is 0.1 and dividend yield is 1.25.
What is Dividend payout?The dividend payout is the ratio between dividend per equity share and earning per equity share.
Earning per share = Earning net interest and tax/ Number of shares outstanding
= $6,000,000/3,00,000
= 20
Dividend per share = Total Dividend/ No of shares
= $600,000/300,000
= $2
Dividend payout ratio = Dividend per share/Earning Per Share
= $2/20
= 0.1
Market value per share = P/E Ratio × Earning per share
= 8 × 20
= $160
Dividend Yield = Dividend per share/ Market Value Per Share
= $2/$160×100 = 1.25
Therefore the earning per share indicates the earnings of the company is attributable to the equity shareholders. The company's dividend payout ratio and dividend yield ratio indicate the percentage of earnings paid to shareholders via dividends.
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Construct the Barron Pizza, Inc. income statement for the year ending 2015 with the following information (the dollar amounts are in thousands of dollars):
Shares outstanding: $16,732,000
Tax rate:37.5%
Interest expense:$6,173
Revenue:$889,451
Depreciation:$31,293
Selling, general, and administrative expense:$77,430
Other income:$1,102
Research and development:$4,198
Cost of goods sold:$750,796
Answers
Answer:
any want zo. om. id=2139350377
pass=7neBw6
Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242
Answers
Here is the ROIC calculation for Apple, Inc.:
The ROIC calculationNet income (loss) $14,030
Interest expense $0
Taxes $14,030
Net operating profit after taxes $28,060
Average invested capital $176,064
Return on invested capital (ROIC) 15.9%
The following table compares Apple's ROIC to that of BlackBerry:
Company | ROIC
------- | --------
Apple | 15.9%
BlackBerry | 4.9%
As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.
Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.
Here are some of the reasons why Apple has an advantage over BlackBerry:
Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.
Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.
Read more about marketing strategy here:
https://brainly.com/question/25640993
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Why does the scientific method not follow an exact order?
Answers
Through testing and experimentation, the scientific method establishes facts in an unbiased manner.
What is an scientific method?Making an observation, formulating a hypothesis, making a prediction, carrying out an experiment, and then evaluating the findings are the fundamental steps. The scientific method's principles can be used in various contexts, including business, technology, and scientific study.
A set of steps are used in the scientific process to establish facts or generate knowledge. The general procedure is generally known, but depending on what is being examined and who is performing it, each step's specifics may alter. Only questions that can be tested and either proven true or false can be answered using the scientific method.
Therefore, Through testing and experimentation, the scientific method establishes facts in an unbiased manner.
To learn more about scientific method, refer to the link:
https://brainly.com/question/7508826
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