Questions
Your business partner is strongly opposed to your proposal to charge your largest customers lower prices...

Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than you will charge your smaller customers. Your business partner is arguing it is unethical. Explain why both customers will be satisfied with the deal? What kind of price discrimination is this type of segmentation? How will the plan increase revenue?

In: Economics

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following...

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following trial balance was extracted from their books on 31st December, 2004

Details

GH¢

GH¢

Capital Accounts: Togbi

14,000

                               Mama

7,000

Drawings Accounts: Togbi

3,400

                                   Mama

2,200

Current Accounts: Togbi

700

                              Mama

500

Office equipment at cost

1,144

Stock in trade (1/1/2004)

10,000

Trade Debtors and creditors

8,100

6,175

Purchases and sales

76,000

102,000

Freehold property

9,250

Wages and salaries

12,727

Rates and rent

366

78

General expenses

4,000

Cash and Bank

1,204

1,000

Discounts

2,000

340

Returns

177

175

Total

131,128

131,128

Additional Information:

  1. Stock in trade at 31st December,2004 was GH¢11,750
  2. Depreciation on office equipment is to be provided at 10% per annum on straight-line basis
  3. Wages and salaries outstanding at 31/12/2004 were GH¢200
  4. Rates paid in advance at 31/12/2004 amounted to GH¢25
  5. Interest on drawings is to be charged as follows: Togbi GH¢85 and Mama GH¢55
  6. Interest on capital is to be credited at the rate of 5% per annum
  7. Provision for doubtful debts is GH¢80

            Required: all workings must be shown clearly, prepare

  1. Trading and profit and loss accounts
  2. Appropriation accounts
  3. The Partners’ Current Accounts
  4. Balance Sheet as at 31st December,2004

In: Accounting

Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at...

Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to earn a free stay, on average the number of free nights redeemed is 70% of the maximum possible number of free nights available one obtains by dividing the total number of paid nights the hotel has had by 5. Rooms at Posa Hotels cost $300 per night. In 2019, Posa had a total of 100,000 paid room-nights and collected a total of $30 million from customers. Also in 2019, customers redeemed a total of 10,000 free room-nights. Some of the room-nights awarded were based on customers paid nights from previous years and some were based on paid nights from the current year. Required: Prepare journal entries to record revenue for 2019 for Posa. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1)Prepare the entry to record the revenue recognized for the nights paid by customers. 2)Prepare the entry to record the revenue recognized for the free nights redeemed by customers.

In: Accounting

GM, Ford, and Tesla are automobile companies. Or are they? Explain how valuing Tesla and Ford...

GM, Ford, and Tesla are automobile companies. Or are they? Explain how valuing Tesla and Ford may differ from valuing GM? Which stock is the most expensive? How did you determine which company was the most expensive? Do you think intangible assets are a larger share of total company assets today than 3-4 decades ago? How has this change made the valuation of business more difficult or easier? How could or would you measure intangible assets of a publicly listed firm? What type of companies have a large share of their assets tied up in intangibles (e.g. manufacturing, retailers, etc.). Explain why this is likely the case.

In: Finance

Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company...

Common-Sized Income Statement

Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.

Sorenson
Electronics
Company
Electronics
Industry
Average
Sales $1,710,000 100 %
Cost of goods sold (1,162,800) (71)
Gross profit $547,200 29 %
Selling expenses $(307,800) (12) %
Administrative expenses (119,700) (11)
Total operating expenses $(427,500) (23) %
Operating income $119,700 6 %
Other revenue and expense:
Other revenue 34,200 4
Other expense (17,100) (3)
Income before income tax $136,800 7 %
Income tax expense (51,300) (4)
Net income $85,500 3 %

a. Prepare a common-sized income statement comparing the results of operations for Sorenson Electronics Company with the industry average. If required, round percentages to one decimal place.

Sorenson Electronics Company
Common-Sized Income Statement
Sorenson Electronics
Company Amount
Sorenson Electronics
Company Percent
Electronics Industry
Average
Sales $1,710,000 % 100%
Cost of Goods Sold (1,162,800) % (71)%
Gross profit $547,200 % 29%
Selling Expenses $(307,800) % (12)%
Administrative Expenses (119,700) % (11)%
Total operating expenses $(427,500) % (23)%
Operating income $119,700 % 6%
Other revenue and expense:
Other revenue 34,200 % 4%
Other expense (17,100) % (3)%
Income before income tax $136,800 % 7%
Income tax expense (51,300) % (4)%
Net income $85,500 % 3%

In: Accounting

On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable...

On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $52,420 Sales Taxes Payable 7,150 Unearned Service Revenue 16,740 During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $16,740, which includes 8% sales taxes.

Jan 12 Performed services for customers who had made advance payments of $11,320. (Credit Service Revenue.)

Jan 14 Paid state revenue department for sales taxes collected in December 2014 ($7,150).

Jan 20 Sold 950 units of a new product on credit at $50 per unit, plus 8% sales tax.

Jan 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note.

Jan 25 Sold merchandise for cash totaling $7,560, which includes 8% sales taxes.

1) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.)

2) Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable.

Date      Account Titles and Explanation    Debit      Credit

In: Accounting

Report Writing Select any publicly listed Saudi Company that operates in GCC, and write a (minimum...

Report Writing

Select any publicly listed Saudi Company that operates in GCC, and write a (minimum of 1000 word) report covering the following points:                               

  1. Present the study report with clear Introduction and Conclusion including your own views.

  1. Using SWOT analysis, analyze the external and internal environment of your selected company.

  1. Analyze the political, economic, cultural and legal challenges the company currently faces in any of the country it operates (select one country in which the company operates for this analysis).

with references please

In: Operations Management

A businessman asks you to produce a profitability profile of his customers. Once you have provided...

A businessman asks you to produce a profitability profile of his customers. Once you have provided it, he remarks: "So I should drop all those customers where the costs of servicing the customer exceed the revenue from that customer?" Answer him and explain

In: Accounting

A businessman asks you to provide a profitability profile of his customers. Once you have provided...

A businessman asks you to provide a profitability profile of his customers. Once you have provided it, he remarks: "so i should drop all those customers where the costs of servicing the customer exceed the revenue from that customer?" Answer him and explain.

In: Accounting

Justine is a smartphone developer, her free app currently has 500 000 users. She is thinking...

Justine is a smartphone developer, her free app currently has 500 000 users. She is thinking of making a premium version. She assumes that for each 5$ increase in price the number of paying customers decreases by a factor of 1/2, i.e. half of her current paying customers will stop paying for her app.

(a) If pp is the price in dollars and CC is the number of paying customers, find the exponential function

C=f(p)

that models this situation.

(b) Her total revenue

R

is given by the number of paying customers times the price of the app, or

R=p⋅f(p).

Give the formula for dR/dp.

(c) Suppose that Justine is selling her app for 10$$. Compute dR/dp|p=10. Given this result, should Justine increase or decrease the price to get more revenue. Give a brief justification involving units.

In: Economics