The three reasons for using S&OP are demand and supply alignment, improved decision-making, and enhanced operational efficiency. S&OP improves coordination, optimizes resources, and enhances business performance.
Sales and Operations Planning (S&OP) is a process that helps align a company's sales and operational activities to achieve better coordination and improve overall business performance. There are three main reasons for using S&OP:
1. Demand and Supply Alignment: S&OP facilitates the alignment of demand and supply within an organization. By integrating sales forecasts, customer demand, and production capabilities, S&OP enables better coordination and optimization of resources.
For example, a manufacturing company may use S&OP to ensure that production plans are aligned with anticipated customer demand, avoiding inventory shortages or excesses.
2. Improved Decision-Making: S&OP provides a platform for collaborative decision-making. It brings together cross-functional teams to review and discuss data, analyze scenarios, and make informed decisions.
For instance, a retail company can use S&OP to assess different promotional strategies, evaluate their impact on demand and supply, and make decisions on the most effective approach.
3. Enhanced Operational Efficiency: S&OP helps improve operational efficiency by enabling better planning and resource utilization. It allows for better inventory management, reduced lead times, and improved customer service levels.
For example, a distribution company can leverage S&OP to optimize its warehouse operations, ensuring the right inventory levels are maintained, minimizing stockouts, and reducing storage costs.
To know more about demand refer here:
https://brainly.com/question/29703449#
#SPJ11
Data for Hermann Corporation are shown below:
Per unit Percent of sales
Selling price $80 100%
Variable expenses $52 65%
Contribution margin $28 35%
Fixed expenses are $76,000 per month and the company is selling 4,600 units per month.
Required:
The marketing manager argues that a $10,000 increase in the monthly advertising budget would increase monthly sales by $25,000. Calculate the increase or decrease in net operating income.
Increasing the monthly advertising budget by $10,000, which leads to a $25,000 increase in monthly sales, would result in an increase in net operating income of $8,764 for Hermann Corporation.
To calculate the increase or decrease in net operating income, we need to analyze the impact of the proposed increase in the monthly advertising budget on the company's financials.
Fixed expenses: $76,000 per month
Selling price per unit: $80
Variable expenses per unit: $52
Contribution margin per unit: $28
Current sales volume: 4,600 units per month
Current net operating income = ($28 × 4,600) - $76,000
= $128,800 - $76,000
= $52,800
New sales volume = 4,600 + ($25,000 / $80)
= 4,600 + 312.5
= 4,912.5 (rounded to 4,913 units)
New net operating income = ($28 × 4,913) - $76,000
= $137,564 - $76,000
= $61,564
Increase or decrease in net operating income = New net operating income - Current net operating income
= $61,564 - $52,800
= $8,764
Therefore, the increase in net operating income resulting from the $10,000 increase in the monthly advertising budget would be $8,764.
Learn more about Operating income: https://brainly.com/question/30400720
#SPJ11
Office Renovation (RFP)
1.Payments, Incentives, and Penalties
List all the terms of payment for adequate performance. Highlight the basis for
incentives for superior performance and penalties for inadequate performance or
lack of compliance.
2. Contractual Terms and Conditions
Attach standard contracting forms, certifications, and assurances. You may
include requirements specific to this particular contract.
3. Requirements for Proposal Preparation
A consistent structure in terms of content, information, and documents types
simplifies things for the people evaluating the proposals. Therefore, you should
request a particular structure for the proposal and provide an exhaustive list of
documents you want to receive.
Writing a request for proposal about Office Renovation number 1 to 3
A request for proposal for an office renovation project should include terms for payment, contractual terms and conditions, and requirements for proposal preparation.
The following are details on each of these components.1. Payments, Incentives, and PenaltiesTerms of payment for adequate performance should be clearly outlined in the request for proposal. This should include how and when payments will be made. Incentives for superior performance, such as completing the project ahead of schedule or under budget, should also be outlined. 2. Contractual Terms and Conditions Standard contracting forms, certifications, and assurances should be attached to the request for proposal. This includes details such as payment terms, scope of work, warranties, insurance requirements, and dispute resolution procedures.
3. Requirements for Proposal PreparationTo simplify the proposal evaluation process, a consistent structure should be requested for all proposals. This structure should include sections on the proposed scope of work, timelines, budget, qualifications and experience of the proposed team, and any additional relevant information. Overall, a well-written request for proposal should provide a clear understanding of the scope of work and the requirements for the project.
To know more about Contractual terms visit-
https://brainly.com/question/29628414
#SPJ11
Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $13,000, $15,000, $15,000, $20,000, and $17,000, respectively. The interest rate is 6%. What is the discounted payback period?
The discounted payback period is a financial metric used to measure the time it takes for an investment to recover its initial cost, considering the time value of money. The discounted payback period for this investment is approximately 3 years.
To calculate the discounted payback period, we need to find the present value (PV) of each cTh flow and accumulate them until the accumulated present value equals or exceeds the initial investment.
Given:
Initial investment (Io) = $40,000
Cash flows for each year: $13,000, $15,000, $15,000, $20,000, $17,000
Interest rate (r) = 6%
To find the present value of each cash flow, we can use the formula:
PV = CF / (1 + r)^n
Where:
PV is the present value of the cash flow,
CF is the cash flow for a particular year,
r is the interest rate,
n is the number of years.
Calculating the present value for each cash flow:
PV1 = $13,000 / (1 + 0.06)^1 ≈ $12,264.15
PV2 = $15,000 / (1 + 0.06)^2 ≈ $13,839.97
PV3 = $15,000 / (1 + 0.06)^3 ≈ $12,995.83
PV4 = $20,000 / (1 + 0.06)^4 ≈ $16,407.86
PV5 = $17,000 / (1 + 0.06)^5 ≈ $12,357.56
Now, let's accumulate the present values until we reach or exceed the initial investment:
Accumulated PV1 = PV1 ≈ $12,264.15
Accumulated PV2 = PV1 + PV2 ≈ $12,264.15 + $13,839.97 ≈ $26,104.12
Accumulated PV3 = PV1 + PV2 + PV3 ≈ $12,264.15 + $13,839.97 + $12,995.83 ≈ $39,099.95
The discounted payback period is reached when the accumulated present value is equal to or exceeds the initial investment. In this case, it takes 3 years to reach or exceed the initial investment of $40,000.
Therefore, the discounted payback period for this investment is approximately 3 years.
For more details regarding discounted payback period, visit:
https://brainly.com/question/27835298
#SPJ4
The January 22, 2001, issue of Fortune contained an article "Why You Can Safely Ignore Six Sigma," that was highly critical of Six Sigma. Here are some of the criticisms levied against Six Sigma:
How would you respond to these statements?
a. The results often don’t have any noticeable impact on company financial statements. Thus, Six Sigma success doesn’t correlate to higher stock value. This criticism applies to 90 percent of the companies that implement Six Sigma.
b. Only early adopters can benefit.
c. Six Sigma focuses on defects, which are hard to objectively determine for service businesses.
d. Six Sigma can’t guarantee that your product will have a market.
a. Financial impact varies among companies. b. Benefits extend beyond early adopters. c. Service metrics can be objectively measured. d. Market success requires broader considerations.
a. The statement that Six Sigma results often don't have any noticeable impact on company financial statements and that success doesn't correlate to higher stock value may not capture the full picture. While it is true that the direct impact of Six Sigma initiatives on financial statements can vary, the value of Six Sigma lies in its ability to drive process improvements, reduce waste, enhance customer satisfaction, and increase operational efficiency. These outcomes, although not always immediately reflected in financial statements, can contribute to long-term financial success by reducing costs, increasing productivity, and improving overall business performance.
b. The notion that only early adopters can benefit from Six Sigma is not accurate. Six Sigma is a methodology that can be implemented by any organization, regardless of its stage of adoption. While early adopters may have gained a competitive advantage by embracing Six Sigma earlier, it does not imply that late adopters cannot benefit. The benefits of Six Sigma, such as process improvement, customer satisfaction, and cost reduction, are applicable to any organization willing to implement and sustain the principles and practices of Six Sigma.
c. The criticism that Six Sigma focuses on defects, which are hard to objectively determine for service businesses, is not entirely valid. While it is true that defects may be more challenging to quantify in service industries compared to manufacturing, Six Sigma methodologies have been successfully adapted and applied in service businesses. In service industries, defects or errors can be defined based on customer requirements, expectations, and service level agreements. The key is to identify measurable indicators and performance metrics that reflect service quality and align them with customer needs and expectations.
d. It is true that Six Sigma cannot guarantee that a product will have a market. Six Sigma is primarily focused on process improvement and quality management, aiming to reduce variability and defects. While these improvements can enhance the product's quality and customer satisfaction, factors such as market demand, competition, pricing, and marketing efforts also play crucial roles in determining the success of a product in the market. Six Sigma provides a framework for continuous improvement and can contribute to creating a competitive advantage, but market success relies on a combination of various factors beyond the scope of Six Sigma alone.
In summary, while the criticisms raised against Six Sigma have some valid points, they may not fully capture the broader benefits and applicability of Six Sigma methodologies. Six Sigma can drive significant improvements in organizations, enhance operational efficiency, and contribute to long-term financial success, although its impact on financial statements may not always be immediately apparent. It is a methodology that can be implemented by any organization, including service businesses, and while it focuses on defects, it can be adapted to address service quality. However, market success depends on multiple factors beyond Six Sigma alone.
Learn more about adopters here
https://brainly.com/question/30061503
#SPJ11
A reputable study examined the impact of depression on a patient's ability to survive cardiac disease. Researchers identified 412 people with cardiac disease, evaluated them for depression, and followed the group for 4 years of the 317 patients with no depression, 65 died of the 95 patients with minor of major depression 28 died. Complete parts a through c below. a) Create a 95% confidence interval for the difference in death rates. Let the patients with depression be sample 1 and let the patients without depression be sample The 95% confidence interval is _____ (Round to three decimal places as needed. Use ascending order) b) Interpret the interval in this context Select the correct choice below and fill in the answer boxes within your choice (Round to one decimal place as needed. Use ascending order)
A. The researchers are 95% confident that the population proportion of heart disease patients who die within 4 years is between ___% and ___% B. The researchers are 95% confident that the population proportion of heart disease patients who die within 4 years is between ___% and ___% higher for depressed patients than for nondepressed patients C. There is a 95% probability that the population proportion of heart disease patients who die within 4 years is between ___% and ___% higher for depressed patients than for nondepressed patients D. The researchers are 95% confident that the sample proportion of heart disease patients who die within 4 years is between ___% and ___% higher for A reputable study examined the impact of depression on a patient's ability to survive cardiac disease. Researchers identified 412 people with cardiac disease. evaluated them for depression, and followed the group for 4 years of the 317 patients with no depression, 65 died. Of the 95 patients with minor or major depression, 28 died Complete parts a through c below C. There is a 95% probability that the population proportion of heart disease patients who die within 4 years is between and higher for depressed patients than for nondepressed patients D. The researchers are 95% confident that the sample proportion of heart disease patients who die within 4 years is between % and % higher for depressed patients than for nondepressed patients c) Carefully explain what "95% confidence means. Choose the correct answer below A. This phrase means 95% of all confidence intervals will match the part a confidence interval B. This phrase means the part a confidence interval will contain the true difference in death rates between depressed and nondepressed patients 95% of the Sime C. This phrase means 95% of all random samples will produce intervals that contain the true difference in death rates between depressed and nondepressed patients D. This phrase means 95% of all random samples will produce intervals that contain the true death rate of all people with heart disease.
By conducting a reputable study on the impact of depression on the survival of cardiac disease patients, researchers were able to analyze the difference in death rates between patients with and without depression.
They constructed a 95% confidence interval to estimate the true difference in death rates and interpreted the interval accordingly. Additionally, understanding the concept of "95% confidence" is crucial in interpreting the results accurately.
a) To create a 95% confidence interval for the difference in death rates, we compare the death rates between patients with depression (sample 1) and patients without depression (sample 2). The confidence interval is calculated using appropriate statistical methods, taking into account the sample sizes, number of deaths, and the total follow-up period.
b) Interpreting the interval in the given context, the correct choice would be:
B. The researchers are 95% confident that the population proportion of heart disease patients who die within 4 years is between ___% and ___% higher for depressed patients than for non-depressed patients.
This interpretation indicates that the confidence interval provides a plausible range for the true difference in death rates between depressed and non-depressed patients. The range of percentages suggests that the death rate among depressed patients is likely to be higher than among non-depressed patients, with a 95% confidence level.
c) The correct answer to explain what "95% confidence" means is:
C. This phrase means 95% of all random samples will produce intervals that contain the true difference in death rates between depressed and non-depressed patients.
This explanation highlights that if we were to repeat the study multiple times, collecting different random samples each time, 95% of those samples would yield confidence intervals that include the true difference in death rates between depressed and non-depressed patients. It emphasizes the reliability and consistency of the method in estimating the true population parameters.
Learn more about death rates here:
brainly.com/question/16549128
#SPJ11
Annapolis Company completes job #601 which has a standard of 610 labor hours at a standard rate of $18.30 per hour. The job was completed in 550 hours and the average actual labor rate was $18.00 per hour. What is the labor rate variance? A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.
The labor rate variance is -$165. A favorable variance means that the actual labor rate was lower than the standard labor rate, resulting in cost savings for the Annapolis Company.
To calculate the labor rate variance, we need to compare the standard labor rate with the average actual labor rate. The standard labor rate for job #601 is $18.30 per hour. The average actual labor rate for the job is $18.00 per hour.
To find the labor rate variance, we subtract the standard labor rate from the average actual labor rate and multiply the result by the number of hours worked. In this case, the number of hours worked is 550 hours.
Labor rate variance = (Average actual labor rate - Standard labor rate) * Number of hours worked
= ($18.00 - $18.30) * 55 =>(-$0.30) * 550
=> -$165
In this case, the labor rate variance indicates that the company saved $165 on labor costs compared to the standard.
to know about labor rate variance visit:
https://brainly.com/question/31657772
#SPJ11
Step Two: Searching the Job Market Where are the jobs? Even though you may not be in the market at the moment, become familiar with the kinds of available positions because job awareness should be an important part of your education. Find a job advertisement or announcement from a job board on the web or a company website. Select an advertisement or announcement describing the kind of employment you are seeking now or plan to seek when you graduate.
I found a job advertisement for a Marketing Manager position at XYZ Company. The advertisement I found is for a Marketing Manager position, which aligns with the kind of employment I am seeking.
The job board on the web or the company website is a valuable resource for exploring the current job market and understanding the requirements and expectations of employers in my desired field.
The Marketing Manager position requires a bachelor's degree in marketing or a related field, along with several years of experience in marketing or advertising. The responsibilities include developing marketing strategies, managing campaigns, conducting market research, and collaborating with cross-functional teams. The advertisement also emphasizes the need for strong analytical and communication skills, as well as a creative mindset.
This job advertisement is particularly relevant to my career aspirations as it offers an opportunity to apply the marketing knowledge and skills I have acquired during my education. It aligns with my interest in strategic marketing and allows for growth and advancement within the organization. Additionally, it indicates the demand for marketing professionals in the current job market, highlighting the potential opportunities for career growth and development in this field.
By exploring job advertisements and announcements, I can gain valuable insights into the job market, understand the specific requirements and qualifications sought by employers, and tailor my skills and experiences to meet those expectations. This knowledge will help me better prepare for my future job search and enhance my competitiveness in the job market.
To learn more about advertisement, click here: brainly.com/question/14227079
#SPJ11
the
following are small business goals that should be considered
everyday
The Small Business goals: Conduct three touchpoints for every client. Use the Business Structure Analysis Tool with every Schedule C client. Discuss Small Business Services with every client.
These goals focus on providing personalized and tailored services to clients, maximizing tax savings, and expanding the range of services offered. Let's break down each goal:
Conduct three touchpoints for every client who purchased Quarterly Tax Payment Service: This goal emphasizes the importance of regular communication and engagement with clients who have availed the Quarterly Tax Payment Service. By conducting three touchpoints, the business can ensure customer satisfaction, address any concerns, and provide ongoing support.
Use the Business Structure Analysis Tool with every Schedule C client who could benefit from the tax savings of forming an LLC or Corporation: This goal aims to identify opportunities for clients to optimize their tax savings by forming a legal entity such as an LLC or Corporation. By utilizing the Business Structure Analysis Tool, the business can assess the client's situation and provide recommendations for potential tax benefits.
Discuss Small Business Services with every client in need of bookkeeping or payroll and submit qualified leads using the referral portal: This goal focuses on expanding the range of services offered by discussing Small Business Services with clients who require bookkeeping or payroll assistance. It also encourages the generation of new leads by submitting qualified referrals through the referral portal, contributing to business growth and increasing revenue opportunities.
By considering and implementing these goals on a daily basis, the small business can enhance client satisfaction, provide value-added services, and drive business growth and profitability.
To know more about l Business goals, refer here:
https://brainly.com/question/31030224#
#SPJ11
Complete question:
The following are Small Business goals that should be considered everyday (select all that apply).
1Product attach for Quarterly Tax Payment Service and Business Tax Audit Support.
2 Conduct three touchpoints for every client who purchased Quarterly Tax Payment Service.
3 Use the Business Structure Analysis Tool with every Schedule C client who could benefit from the tax savings of forming a Limited Liability Company (LLC) or Corporation (and filing an S corp election).
4 Discuss Small Business Services with every client in need of bookkeeping or payroll and submit qualified leads using the referral portal.
A shareholders agreement: o is signed by the shareholders and all secured creditors o normally provides for the employment of shareholders by the company o is a vehicle by which dividends and financial statements are generated o is a method by which a director is replaced
A shareholders agreement is a legal document that outlines the rights, responsibilities, and obligations of the shareholders of a company. It is typically signed by the shareholders and, in some cases, may also involve secured creditors.
However, the involvement of secured creditors in a shareholders agreement would depend on the specific circumstances and agreements between the parties involved.
The primary purpose of a shareholders agreement is to govern the relationship between the shareholders and provide a framework for decision-making within the company. While it may include provisions related to employment, such as restrictions on competition or non-disclosure agreements, it is not primarily focused on the employment of shareholders by the company.
A shareholders agreement does not generate dividends or financial statements. Dividends are typically determined and declared by the company's board of directors, while financial statements are prepared in accordance with accounting principles and regulatory requirements.
One aspect that may be addressed in a shareholders agreement is the process for appointing or replacing directors. It may outline the procedure for electing directors, their term limits, and the circumstances under which a director may be removed or replaced.
In summary, a shareholders agreement primarily governs the relationship between shareholders, establishes rights and obligations, and provides a framework for decision-making in the company. While it may touch on employment-related matters and director appointments, it is not directly responsible for generating dividends or financial statements.
Learn more about company from
https://brainly.com/question/24553900
#SPJ11
True or False (please answer all 5)
Suppose the equity investment return rate decreases as an investor takes our larger debts. Then, it is called negative financial leverage. There are two investment projects with the same return rates
1. False. When the equity investment return rate decreases as an investor takes on larger debts, it is called positive financial leverage, not negative financial leverage.
2. True. If two investment projects have the same return rates, it indicates that the expected returns from both projects are equal.
Let's break down the true or false statements one by one:
1. Suppose the equity investment return rate decreases as an investor takes on larger debts. Then, it is called negative financial leverage.
False. When the equity investment return rate decreases as an investor takes on larger debts, it is referred to as positive financial leverage. Positive financial leverage occurs when the return on equity (ROE) exceeds the cost of debt. The use of debt amplifies the returns for equity investors.
2. There are two investment projects with the same return rates.
True. If two investment projects have the same return rates, it means that the expected returns from both projects are equal. It suggests that the projects offer similar profitability potential.
learn more about "investment ":- https://brainly.com/question/29547577
#SPJ11
Shirley and Cameron have just moved to Brandon and are considering the two following housing required. It has a 25-year mortgage at an interest rate of 3.00%, compounded semi-annually Option 1: A house with a purchase price of $249 000.00 and down payment of $50 000.00 Option 2: Apartment for rent with monthly payments of $1300.00 and monthly parking fees of $60.00 a. What would be Shirley and Cameron's monthly mortgage payment with Option 1? Show your work. b. What will be the total amount paid for each option at the end of 10 years? c. State one advantage of renting the apartment.
A-Shirley and Cameron's monthly mortgage payment with Option 1 would be $897.70. B- at the end of 10 years, the total amount paid for Option 1 would be $538,620.00, while the total amount paid for Option 2 would be $194,400.00. C- One advantage of renting the apartment is flexibility.
a-To calculate the monthly mortgage payment for Option 1, we need to determine the principal amount borrowed and the mortgage term.Principal Amount Borrowed = Purchase Price - Down Payment Principal Amount Borrowed = $249,000.00 - $50,000.00 Principal Amount Borrowed = $199,000.00
Mortgage Term = 25 years = 25 * 2 = 50 semi-annual periodsNext, we can use the formula for calculating the monthly mortgage payment:Monthly Mortgage Payment = [Principal * (Interest Rate / 2)] / [1 - (1 + (Interest Rate / 2)) ^ (-Number of Periods)]
Interest Rate = 3.00% / 100 = 0.03 Number of Periods = 50 Monthly Mortgage Payment = [$199,000.00 * (0.03 / 2)] / [1 - (1 + (0.03 / 2)) (-50)] Monthly Mortgage Payment = $897.70
b-To calculate the total amount paid for each option at the end of 10 years, we need to consider the monthly payments and the mortgage term.
Total Amount Paid for Option 1 = Monthly Mortgage Payment * Number of Periods * 12 Total Amount Paid for Option 1 = $897.70 * 50 * 12 Total Amount Paid for Option 1 = $538,620.00
Total Amount Paid for Option 2 = Monthly Rent * Number of Periods * 12 + Monthly Parking Fees * Number of Periods * 12 Total Amount Paid for Option 2 = $1,300.00 * 10 * 12 + $60.00 * 10 * 12 Total Amount Paid for Option 2 = $187,200.00 + $7,200.00 Total Amount Paid for Option 2 = $194,400.00
c- Renting allows Shirley and Cameron to have the freedom to move and change their living arrangements more easily compared to being tied to a long-term mortgage. They are not responsible for property maintenance and repairs, which can save them time and money.
Additionally, they have fewer financial obligations since they don't have to worry about property taxes, homeowners insurance, and potentially costly repairs. Renting may also provide access to amenities such as swimming pools, fitness centers, or common areas that may be included in the rental property.
To know more about mortgage refer:
https://brainly.com/question/32629331
#SPJ11
A stock is expected to pay dividends in 5 periods. The first dividend will be $3.70 and subsequent dividends are forecasted to stay constant for the foreseeable future. If the required return on the stock is 12.5%, what is its current value?
The current value of the stock is $20.94. This means that the stock is valued at $11.86 in the present, taking into account the expected dividends and the required return rate of 12.5%.
To calculate the current value of the stock, we need to discount the expected dividends using the required return rate. Since the subsequent dividends are forecasted to stay constant, we can use the perpetuity formula to calculate the present value of these dividends.
The formula to calculate the present value of a perpetuity is:
PV = D / r
Where:
PV = Present Value
D = Dividend
r = Required Return
Given:
First Dividend (D1) = $3.70
Required Return (r) = 12.5%
We have the first dividend, but we need to calculate the subsequent dividends. Since they are expected to stay constant, we assume that D2 = D3 = D4 = D5 = D1.
Now let's calculate the present value:
PV = D1 / r + D2 / (1 + r) + D3 / (1 + r)^2 + D4 / (1 + r)^3 + D5 / (1 + r)^4
PV = $3.70 / 0.125 + $3.70 / (1 + 0.125) + $3.70 / (1 + 0.125)^2 + $3.70 / (1 + 0.125)^3 + $3.70 / (1 + 0.125)^4
PV ≈ $2.96 + $2.63 + $2.34 + $2.08 + $1.85
PV ≈ $11.86
Therefore, the current value of the stock is approximately $11.86.
Based on the given dividend forecast and required return rate, the current value of the stock is calculated to be approximately $11.86. This means that the stock is valued at $11.86 in the present, taking into account the expected dividends and the required return rate of 12.5%.
To know more about stock ,visit:
https://brainly.com/question/26128641
#SPJ11
4. Samad established the company with authorized capital-400000 AZN. Hired personnel with total monthly salary-15000 AZN. Rented office-4000 AZN. Obtained equipment-15000 AZN. Installation request expenses-2000 AZN. Depreciation - 500 AZN per month. Taken short-term credit from bank -60000 AZN by 12% per year. Acquired goods-250000 AZN. During the month company sold 120000 AZN goods with 50% mark-up. Customers paid 70% of the price. Utility expenses -1500 AZN. Tax from sales - 4%. Required: a) Prepare Cash flow statement b) Calculate Cash Flow Coverage Ratio
Cash Flow Coverage refers to the ability of a company or individual to generate enough cash flow from operations to cover its debt service obligations. It is a financial ratio that measures the company's ability to meet its debt payments using its operating cash flow.
The Cash Flow Coverage Ratio is calculated by dividing the net cash flow from operations by the total debt service. The net cash flow from operations is the cash inflows from operating activities minus the cash outflows. The total debt service represents the total amount of debt-related payments, such as interest and principal payments, that need to be made within a specific period.
A higher Cash Flow Coverage Ratio indicates a stronger ability to generate sufficient cash flow to cover debt obligations, indicating a lower risk of default. Conversely, a lower ratio suggests a higher risk of being unable to meet debt payments.
Cash Flow Coverage is an important metric for lenders, investors, and creditors to assess the financial health and risk profile of a company. It provides insights into the company's ability to generate cash flow from its core operations and its capacity to fulfill its debt obligations
To learn more about capital visit-
https://brainly.com/question/26339998
#SPJ4
Please post step-by-step procedure of how you got the answer
Chap. 12, question 5
5. The Seldom Seen Ranch in Muckinfut, Texas, is in the process of developing an inventory control system for purchasing hay that will cope with Texas-size uncertainty. Seldom Seen foreman Horace Cints prepared the following information on Seldom Seen's hay use: Average demand during lead time =1,000 bales Lead time =1 month Economic order quantity =2,500 bales Forecast interval =1 month Mean absolute deviation of forecast error =40 bales Desired probability of stocking out =0.10 a. How much safety stock will be required? b. What's the reorder point? c. What's the customer service level for this policy? d. What decision rule should Horace Cints use in ordering hay, assuming constant hay usage throughout the year?
Safety stock is the buffer stock maintained to account for uncertainties in demand and lead time. The answers are:
A) The required safety stock is approximately 75.69 bales.
B) The reorder point is approximately 1,075.69 bales.
C) The customer service level for this policy is 0.90 or 90%.
D) The decision rule is to place an order when the inventory level reaches 1,075.69 bales.
a. Calculation of safety stock:
First, we need to find the Z value corresponding to the desired probability of stocking out, which is 0.10. The Z value can be obtained from a standard normal distribution table or using a statistical calculator. For a desired probability of 0.10, the Z value is approximately 1.28.
Next, we calculate the standard deviation of demand during the lead time using the mean absolute deviation (MAD) of forecast error.
The standard deviation of demand during lead time = MAD / 0.675
The standard deviation of demand during lead time = 40 / 0.675
The standard deviation of demand during lead time ≈ 59.26 bales
Finally, we calculate the safety stock using the formula:
Safety stock = Z * standard deviation of demand during lead time
Safety stock = 1.28 * 59.26
Safety stock ≈ 75.69 bales
Therefore, the required safety stock is approximately 75.69 bales.
b. Calculation of reorder point:
The reorder point is the sum of the average demand during the lead time and the safety stock.
Reorder point = Average demand during lead time + Safety stock
Reorder point = 1,000 bales + 75.69 bales
Reorder point ≈ 1,075.69 bales
Therefore, the reorder point is approximately 1,075.69 bales.
c. Calculation of customer service level:
The customer service level is the complement of the desired probability of stocking out.
Customer service level = 1 - The desired probability of stocking out
Customer service level = 1 - 0.10
Customer service level = 0.90
Therefore, the customer service level for this policy is 0.90 or 90%.
d. Determination of decision rule:
Assuming constant hay usage throughout the year, we can use a fixed order quantity (EOQ) model. The decision rule is to place an order when the inventory level reaches the reorder point, which in this case is 1,075.69 bales.
Therefore, the decision rule is to place an order when the inventory level reaches 1,075.69 bales.
For more details regarding safety stock, visit:
https://brainly.com/question/30906540
#SPJ4
a sale on account is made on January 3 with credit terms 2/10,n/30, which of the following is true? a. If payment is not received within 10 days, the buyer will owe an additional 10% of the selling price. b. The discount period is 30 days. c. The discount period ends January 14. d. The amount of cash collected will be 98% of the sales price if the payment is received within 10 days of the sale. Clear my choice
The correct statement is c. The discount period ends on January 14, allowing the buyer to avail the 2% discount until that date.
In credit terms like "2/10, n/30," the first number represents the discount percentage, the second number indicates the number of days within which the discount can be availed, and the third number denotes the total credit period available.
In this case, the credit terms state "2/10, n/30." The number "2" means that a 2% discount can be obtained if the payment is made within the specified discount period. The number "10" indicates that the discount period lasts for 10 days from the date of the sale. Lastly, the number "30" signifies the total credit period available, which means the payment is due within 30 days from the date of the sale.
To determine the end of the discount period, we need to count the number of days from the date of the sale. Since the sale was made on January 3, the discount period ends 10 days later, on January 13. However, we need to consider that if the 10th day falls on a non-business day, the discount period extends to the next business day. Therefore, in this case, as January 13 is a non-business day, the discount period ends on the next business day, which is January 14.
Learn more about discount periods:
brainly.com/question/30319483
#SPJ11
Riggs Company purchases sails and produces sailboats. It currently produces 1,230 sailboats per year, operating at normal capacity, which is about 80 % of full capacity. Riggs purchases sails at $ 278 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 97.73 for direct materials, $ 81.23 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,200 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice. "It would cost me $ 268.96 to make the sails," she says, "but only $ 278 to buy them. Should I continue buying them, or have I missed something?"
The cost of manufacturing is higher than the cost of purchasing thus Riggs should continue to buy sails rather than manufacture them.
Riggs Company is producing 1,230 sailboats per year and is operating at normal capacity, which is about 80% of full capacity. The company is buying sails at $278 each, but it is considering using the excess capacity to manufacture the sails instead.
The manufacturing cost per sail would be $97.73 for direct materials, $81.23 for direct labor, and $90 for overhead. The $90 overhead includes $78,200 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice on whether to continue buying the sails or manufacture them.
Riggs should manufacture the sails instead of buying them.
The cost of manufacturing a sailboat is:
$97.73 (direct material cost) + $81.23 (direct labor cost) + $90 (overhead cost) = $269.96
The overhead cost is calculated as: $78,200/80% = $97,750.
The overhead cost per sail is therefore $97,750/1230 sailboats = $79.43.
The total cost of manufacturing a sail is $269.96 + $79.43 = $349.39, which is higher than the cost of purchasing the sail from an external source ($278).
Since the cost of manufacturing is higher than the cost of purchasing, Riggs should continue to buy sails rather than manufacture them.
To know more about cost of manufacturing, visit:
https://brainly.com/question/21306513#
#SPJ11
Write about Costing Methods and include the following points please: No Plagiarism.
1-Specific Identification
2-First In First Out (FIFO)
3-Last in First Out (LIFO)
4-Average Cost
5-Complying with Guidelines
Technique of specific identification: The cost of stocks of products or services created and segregated for particular projects, as well as items that are not typically interchangeable, should be assigned using a method of specific identification of their distinct costs.
It is assumed that the inventory products that were bought or created first would be sold first (first in, first out, or FIFO). As a result, in this scenario, the things still in stock at the conclusion of the time are those that were just bought or created.
The FIFO approach properly aligns real cost flows with the physical flow of commodities by assigning the earliest expenses paid against revenue.
The inverse of FIFO, last in first out (LIFO), is the idea that the most recent purchases or output would be consumed first.
When inventory units are the same or substantially identical, the average cost approach is used. By dividing the total cost of the units by the total number of units, an average unit cost is calculated.
Learn more about Costing Methods, here:
https://brainly.com/question/29617629
#SPJ4
Lulu (aged 16) attends high school full time. During the 2020 financial year, Lulu earned the
following income:
• $3,000 bank interest from her own savings
• $20,000 she received as a gift from her parents – derived from shares owned by her parents
• $25,000 inheritance when her grandmother died
Required: Refer to sections in the legislation and/ or cases/ Tax Rulings and calculate Lulu’s tax
payable or refundable for the 2020 tax year. All formulas must be shown. Ignore Medicare.
Lulu's tax payable or refundable for the 2020 tax year cannot be determined without additional details such as Lulu's total taxable income, applicable tax rates, deductions, and any tax credits.
To calculate Lulu's tax payable or refundable for the 2020 tax year, we would need to consider several factors including her total taxable income, applicable tax rates, deductions, and any tax credits she may be eligible for. However, the provided information only includes three sources of income without mentioning any other details necessary for the calculation.
To accurately determine Lulu's tax liability, we would need to refer to the tax legislation, rules, and regulations applicable in the relevant jurisdiction. This would involve considering factors such as tax brackets, marginal tax rates, exemptions, deductions, and any other applicable tax credits or incentives.
Additionally, specific rules may apply to each type of income mentioned (bank interest, gift, inheritance), and their tax treatment could vary depending on the jurisdiction and relevant tax laws.
Without access to the specific legislation, tax rulings, or case law applicable to Lulu's situation, it is not possible to provide an accurate calculation of her tax payable or refundable for the 2020 tax year.
To ensure accurate and compliant tax calculations, it is recommended that Lulu consult with a qualified tax professional or refer to the official tax authority in her jurisdiction for specific guidance tailored to her individual circumstances.
To learn more about tax click here: brainly.com/question/31518227
#SPJ11
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: ats Occupancy - Days 18,150 12,620 15,180 28,950 24,900 17,400 14,800 Month March April May June July August September Custodial Supplies Expense $ 17,940 18, 110 24,240 29,300 32,820 25, 470 24,090 Skipped eBook Print Occupancy days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy days. eferences Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) Y = X 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 13,600 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Amint
The final answer is $71,850.
The cost formula for custodial supplies expense by using the high-low method is:Fixed cost:From the table, the highest month in terms of occupancy days is June with 28,950 days and the lowest is September with 14,800 days. So, we can calculate the variable cost per unit:Variable cost per unit = (High cost - Low cost) / (High activity level - Low activity level)Variable cost per unit = (29,300 - 24,090) / (28,950 - 14,800)Variable cost per unit = 0.785Fixed cost = Total cost - (Variable cost per unit × Total activity level)Fixed cost = $168,190 - (0.785 × 150,000)Fixed cost = $56,065Variable cost:Variable cost = Total cost / Total activity levelVariable cost = $168,190 / 150,000Variable cost = $1.121Total cost formula:
Total cost = Fixed cost + (Variable cost per unit × Activity level)Total cost = $56,065 + ($1.121 × X)Therefore, the cost formula for custodial supplies expense is:Y = $56,065 + ($1.121 × X)Now we need to find out the amount of custodial supplies expense would we expect to be incurred at an occupancy level of 13,600 occupancy-days.By using the cost formula derived above, we can calculate it:Total cost = Fixed cost + (Variable cost per unit × Activity level)Total cost = $56,065 + ($1.121 × 13,600)Total cost = $71,849.6So, we can expect to incur the amount of $71,849.6 custodial supplies expense at an occupancy level of 13,600 occupancy-days. Therefore, the final answer is $71,850.
Learn more about Cost here,https://brainly.com/question/28147009
#SPJ11
The market supply for a good is described Qs=20P-200 and the market demand is described by Qd=1000-40P. What is the market equilibrium PRICE?
The market equilibrium price is $20.
To find the market equilibrium price, we need to determine the price at which the quantity demanded (Qd) equals the quantity supplied (Qs). In other words, we need to find the point where the demand and supply curves intersect.
The market supply function is Qs = 20P - 200, and the market demand function is Qd = 1000 - 40P. By setting Qs equal to Qd, we can solve for the equilibrium price.
20P - 200 = 1000 - 40P
Combining like terms, we have:
60P = 1200
Dividing both sides by 60:
P = 20
Therefore, the market equilibrium price is $20.
At this price, the quantity demanded (Qd) and the quantity supplied (Qs) are equal, ensuring a balance in the market. It's important to note that the equilibrium price can vary depending on the specific demand and supply functions, but in this case, the equilibrium price is determined to be $20.
Know more about Equilibrium here :
https://brainly.com/question/30694482
#SPJ11
On journal paper, prepare year-end adjustments for the following independent items. OMIT EXPLANATIONS. UPLOAD YOUR ANSWER AS A PDF FILE. A . Before adjustment, the balance in the Unearned Revenue account is $4,500 (assume normal balance). At the end of the year two-thirds was still unearned. B. Services totaling $3,000 had been performed but not yet billed. C. Depreciation on trucks totaled $5,000 for the year. D. Before adjustment the balance in the Supplies account is $9,800 (assume normal balance). However, at year end, only $1,200 in supplies remained. E. Payroll for the five-day work week, to be paid on Friday, is $10,000. Year end falls on a Thursday.
These are the required adjustment entries to be made at year-end for the independent items described. It is important to note that these entries should be reviewed and approved by a qualified accountant or bookkeeper before being applied to ensure accuracy and completeness.
A. Unearned Revenue Adjustment:
Debit: Unearned Revenue (1/3 x $4,500 = $1,500)
Credit: Revenue (1/3 x $4,500 = $1,500)
B. Accrued Services Adjustment:
Debit: Accounts Receivable ($3,000)
Credit: Service Revenue ($3,000)
C. Depreciation Adjustment:
Debit: Depreciation Expense - Trucks ($5,000)
Credit: Accumulated Depreciation - Trucks ($5,000)
D. Supplies Adjustment:
Debit: Supplies Expense ($8,600 = $9,800 - $1,200)
Credit: Supplies ($8,600)
E. Accrued Wages Adjustment:
Debit: Wage Expense ($8,333.33 = $10,000 x 5/7)
Debit: Payroll Tax Expense ($666.67 = $10,000 x 2/7)
Credit: Wages Payable ($10,000)
learn more about accountant here
https://brainly.com/question/24261944
#SPJ11
Good morning Chegg
Can you help me solve a question?
Labor union question? Although Fuller wrote and publishes the "offensive" article on his own, the violation was this conduct protected under section 76 of the LMRA.
The conduct of Fuller, who wrote and published the "offensive" article on his own, may or may not be protected under section 7 of the LMRA. To determine if it is protected, we need to understand the criteria outlined in section 7.
Section 7 of the LMRA protects an employee's rights to engage in "concerted activities for the purpose of collective bargaining or other mutual aid or protection."
To be protected, Fuller's conduct must meet certain conditions.
Firstly, his conduct should be considered "concerted," meaning it involves two or more employees acting together. If Fuller acted alone, his conduct may not be protected.
Secondly, his conduct should be related to collective bargaining or mutual aid or protection. If the "offensive" article does not have a connection to these activities, it may not be protected.
It is important to note that without more information about the specific details of Fuller's conduct and the context in which it occurred, it is difficult to definitively determine if it is protected under section 7 of the LMRA.
Consulting an employment attorney or referring to specific case law may provide further clarity in this matter.
For more such questions on mutual aid
https://brainly.com/question/29641093
#SPJ11
you bought 18 year, 9.4% semi annual coupon bond today and the
current market rate of return is 8.6%. The bond is callable in four
years with a $87 car premium. What price did you pay for your
bond?
To calculate the price you paid for the bond, we need to determine the present value of its future cash flows. The bond has an 18-year maturity, pays a semiannual coupon of 9.4%, and is callable in four years with a $87 call premium. The current market rate of return is 8.6%.
First, we calculate the present value of the bond's coupon payments. Since the bond pays semiannual coupons, there will be 36 coupon payments (18 years * 2 payments per year). Each coupon payment is 9.4% of the face value, so we discount each payment using the market rate of return divided by 2 (since it is a semiannual rate).
Next, we calculate the present value of the bond's face value at maturity. This is the face value discounted back to the present using the market rate of return.
Lastly, we subtract the call premium from the bond's price since it is callable in four years.
By summing up the present values of the coupon payments, the present value of the face value, and subtracting the call premium, we can determine the price you paid for the bond.
Learn more about premium here
brainly.com/question/32107251
#SPJ11
UNT Inc is undertaking a $10,000,000 project that will generate $2.5M of yearly after-tax cash flows. Assume the project's IRR is 15%. If the firm finances the project with only equity, the cost of capital will be 20% and the NPV will be negative. However, if UNT finances the project with a mix of debt and equity, the cost of capital will be 10% and the NPV will be positive. This change to the NPV of the project has what effect on the project's IRR? Multiple Choice not enough information to answer. Decreases the IRR No effect Increases the IRR
The project's IRR remains the same despite the change in NPV caused by the financing mix. The IRR represents the expected rate of return on the project and is unaffected by changes in financing structure or cost of capital. It remains at 15%, as initially stated.
The internal rate of return (IRR) is the discount rate at which the net present value (NPV) of a project becomes zero. It represents the rate of return that the project is expected to generate. The IRR is calculated by finding the discount rate that equates the present value of the project's cash flows to its initial investment.
In this scenario, the project's IRR is given as 15%. The change in the NPV from negative to positive indicates that the project becomes economically viable when financed with a mix of debt and equity, resulting in a positive net present value.
However, the IRR is independent of the project's financing structure. It is solely based on the project's cash flows and the initial investment. The IRR represents the return on investment and is not affected by changes in the project's cost of capital or financing mix.
Therefore, the change to the NPV of the project from negative to positive has no effect on the project's IRR.
To know more about rate of return ,visit:
https://brainly.com/question/1789817
#SPJ11
For the scenario below, write a business memorandum (at least 500 words in length), providing a recommendation and describing the solution approach. A sample business memo is attached above.
Sally is self-employed. She makes cookies out of her own home, and sells these cookies through her website. Recently, a severe storm went through the area that Sally lives in, and caused some damage to her home. Sally was forced to use some funds from her cookie business to pay for the needed home repairs. At this point, Sally only has enough money to make ten-dozen more cookies, which will likely not be enough quantity to produce enough profit for her to buy more ingredients to make more cookies. Sally knows she could generate more cash on hand if she generated more advance-orders, but she also knows that she would have to advertise more. Advertising more might force her to use the remainder of the cash on hand she currently has. Sally needs to quickly decide what to do.
Sally should focus on generating more advance-orders to increase her cash on hand and overcome the financial challenge caused by the home repairs.
What should be Sally's strategy to address her financial challenge?In this situation, Sally, a self-employed cookie maker, is facing a financial challenge after using some funds from her cookie business to pay for necessary home repairs following a severe storm. With limited funds remaining, she needs to decide how to generate more cash on hand to sustain her business.
The recommended solution for Sally is to prioritize generating more advance-orders for her cookies. By encouraging customers to place orders in advance, Sally can secure a steady stream of income that will help her replenish her cash reserves. To achieve this, Sally needs to focus on effective advertising strategies to reach a broader audience and attract new customers.
While advertising may require some financial investment, Sally should carefully plan her advertising budget to ensure that she can allocate a portion of her remaining cash on hand without depleting it entirely. It's important for Sally to explore cost-effective advertising options, such as social media promotions, online marketing, and collaborations with local businesses or community events. These approaches can help her increase brand visibility and attract potential customers without incurring excessive expenses.
In addition to advertising, Sally should also leverage her existing customer base and encourage repeat orders and referrals. Offering incentives, discounts, or loyalty programs can incentivize customers to place advance-orders and recommend her cookies to their friends and family. Word-of-mouth marketing can be a powerful tool for Sally to expand her customer reach and generate more orders.
To optimize her resources, Sally should also focus on maximizing efficiency in her cookie production process. By streamlining her operations, improving productivity, and minimizing waste, she can increase her profit margin and ensure that her limited quantity of cookies yields the highest possible returns.
In summary, Sally's best course of action is to prioritize generating more advance-orders by implementing effective advertising strategies, encouraging repeat business, and optimizing her production process. By carefully managing her cash on hand and allocating resources wisely, Sally can overcome the financial challenge caused by the home repairs and continue to grow her cookie business.
Learn more about financial challenge
brainly.com/question/28179095
#SPJ11
When the research is focused on analyzing meanings, rather than analyzing numbers, the method used is O Non-parametric O Parametric O Quantitative O Qualitative
When the research is focused on analyzing meanings, rather than analyzing numbers, the method used is qualitative. The qualitative research method is a type of research that focuses on collecting, analyzing, and interpreting non-numerical data, such as written, visual, or audio data that provides a deeper understanding of human experience.
behavior, and attitudes. Qualitative research methods are used to study complex social and cultural phenomena that cannot be measured quantitatively, such as social norms, feelings, and beliefs.Qualitative research is often exploratory and generates data that is often more descriptive than numerical. Researchers use a variety of methods to collect data in qualitative research, including interviews, focus groups, observation, and document analysis. One of the key features of qualitative research is that the data is often collected from a small sample, but the analysis is more in-depth than quantitative research because it aims to uncover the underlying meaning and nuances of the data collected.In conclusion, the research method that is used to analyze meanings rather than analyzing numbers is qualitative research.
Qualitative research methods are used to study complex social and cultural phenomena that cannot be measured quantitatively, such as social norms, feelings, and beliefs. Qualitative research is often exploratory and generates data that is often more descriptive than numerical.
To know more about the research visit:
brainly.com/question/24174276
#SPJ11
why would net income increase with the historical cost method of
valuing assets? What are the underlying transactions and how do
these changes affect net income?
Net income can increase with the historical cost method of valuing assets if the assets are sold for more than their historical cost. This is because the difference between the sale price and the historical cost is recorded as a gain on the sale of the assets.
The historical cost method of valuing assets means that assets are recorded on the balance sheet at their original purchase price. This means that if the assets are sold for more than their historical cost, the company will record a gain on the sale. The gain will increase net income, as it is a non-operating income.
For example, if a company purchases an asset for $100 and sells it for $150, the company will record a gain of $50 on the sale. This gain will increase net income by $50.
The underlying transactions that can lead to an increase in net income with the historical cost method of valuing assets include:
The sale of assets for more than their historical cost.
The appreciation in the value of assets.
The revaluation of assets to fair value.
These changes can all increase net income by increasing the value of assets on the balance sheet.
It is important to note that the historical cost method of valuing assets can also lead to a decrease in net income if the assets are sold for less than their historical cost. In this case, the company will record a loss on the sale, which will decrease net income.
To learn more about net income click here : brainly.com/question/32614743
#SPJ11
Path–goal theory assumes which of the following?
Group of answer choices
Supportive leadership is best suited to maximize organizational performance.
Effective leaders select the most appropriate behavior based on the situation.
Leadership is relatively unimportant in high-performance organizations.
Participative leadership is the most effective style of leadership.
Path-goal theory assumes that effective leaders select the most appropriate behavior based on the situation.(C) This theory was first developed by Robert House in 1971 to explain the relationship between a leader's style and the motivation and performance of their followers.
Path-goal theory suggests that a leader's behavior should be determined by their followers' needs, abilities, and work environments. Effective leaders will adapt their leadership style to the needs of their followers and the demands of the situation to achieve the desired outcomes. There are four leadership behaviors identified in the theory, including directive leadership, supportive leadership, participative leadership, and achievement-oriented leadership. Directive leadership is most effective in situations where tasks are ambiguous or complex, while supportive leadership is best suited to maximize organizational performance.
Participative leadership involves involving followers in decision-making, and achievement-oriented leadership involves setting challenging goals and rewarding progress toward them.
To know more about Path goal theory visit-
https://brainly.com/question/30397152
#SPJ11
Blu Inc. has profit margin of 6%, total assets turnover ratio of 1.0, and total assets to total equity ratio of 3.0, what is the company's ROE? Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43 (%) instead of 0.0843
Blu Inc.'s Return on Equity (ROE) is 18.00%.
ROE measures a company's profitability by determining how efficiently it generates profits from its shareholders' equity. It is calculated by multiplying the company's profit margin, total assets turnover ratio, and total assets to total equity ratio.
Given that Blu Inc. has a profit margin of 6%, total assets turnover ratio of 1.0, and total assets to total equity ratio of 3.0, we can calculate the ROE as follows:
ROE = Profit Margin × Total Assets Turnover Ratio × Total Assets to Total Equity Ratio
ROE = 0.06 × 1.0 × 3.0 = 0.18
Therefore, Blu Inc.'s ROE is 18.00%. This indicates that for every dollar of equity invested, the company generates a return of 18 cents.
To know more about ROE here https://brainly.com/question/30404824
#SPJ4
Kingbird, Inc. purchased office supplies costing $7980 and debited Supplies for the full arnouint. At the end of the accounting period, a physical count of office supplies revealed $2850 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be debit Supplies, \$2850; credit Supplies Expense, $2850. debit Supplies Expense. $5130; credit Supplies, $5130. debit Supplies Expense. $2850; credit Supplies, $2850. debit Suppties, $5130; credit Supplies Expense. $5130.
The appropriate adjusting journal entry to be made at the end of the period would be to debit Supplies Expense, $5130; and credit Supplies, $5130. This is because the initial debit to Supplies for $7980 was for the full amount of supplies purchased.
After conducting a physical count, it was determined that only $2850 worth of supplies were still on hand. The difference between the initial debit and the actual value of supplies on hand ($7980 - $2850 = $5130) represents the amount of supplies that were used or consumed during the period.
To reflect this expense accurately, Supplies Expense should be debited and Supplies should be credited for the same amount, $5130.
To know more about journal entry visit:
https://brainly.com/question/33438461
#SPJ11
