Zino Company determines that a customer balance of $200,from Hollis Co. is uncollectible. Zino uses the allowance method to account for bad debts. The entry to write off the uncollectible balance will include a: debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. debit to Allowance for Doubtful Accounts and a credit to Bad Debts Expense. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.

Answers

Answer 1

Answer:

The correct answer is A

Explanation:

The journal entry to be posted to write off the balance of uncollectible is as:

Allowance for Doubtful Accounts A/c..........................Dr   $200

              Accounts Receivable A/c.......................................Cr  $200

As the allowance method is used so the accounts receivable account will be credited and the allowance for doubtful accounts is debited with the amount which is recovered that is $200.

Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.

Answer 2

The correct answer is: debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.

When a company uses the allowance method to account for bad debts, it records an estimate of uncollectible accounts as an expense on the income statement and as a contra-asset on the balance sheet. This is done to match the bad debt expense with the revenue earned in the same period.

In this scenario, Zino Company has determined that a specific customer balance of [tex]$200[/tex] from Hollis Co. is uncollectible. Since the allowance method was used, the company would have already estimated and recorded an allowance for doubtful accounts. When it is determined that a specific account is uncollectible, the entry to write off this uncollectible balance involves the following:

 1. Debit the Bad Debts Expense account for the amount of the uncollectible balance. This increases the Bad Debts Expense, which is reported on the income statement and reflects the cost of the uncollectible account in the period in which it was determined to be uncollectible.

 2. Credit the Allowance for Doubtful Accounts for the same amount. This decreases the Allowance for Doubtful Accounts, which is a contra-asset account on the balance sheet, reducing the net value of the accounts receivable.

 The entry does not involve a debit to the Allowance for Doubtful Accounts because this account is being used to offset the Accounts Receivable. Nor does it involve a credit directly to Accounts Receivable, as the Allowance for Doubtful Accounts serves as a buffer for the write-off of specific uncollectible accounts.

 Therefore, the correct journal entry to write off the [tex]$200[/tex] uncollectible balance would be:

Debit to Bad Debts Expense: [tex]$200[/tex]

Credit to Allowance for Doubtful Accounts: [tex]$200[/tex]

 This entry ensures that both the income statement and the balance sheet reflect the correct financial position of the company after accounting for the bad debt.


Related Questions

The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues in a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
a) The policy would likely help Doomsville recover faster.b) The policy would likely make Doomsville’s recession worse.c) The policy would likely have no effect on Doomsville’s economy.d) The policy would have an unknown effect on Doomsville’s economy.

Answers

Answer:

Option "B" is the correct answer to the following answer.

Explanation:

It is generally considered appropriate to use higher policies such as fiscal expansion or monetary expansion to control the recession.  

By continuously increasing the tax rate, the level of disposable income will be reduced considerably due to which the overall consumption level of the economy will also be reduced drastically, as a result of which this policy will make the situation of Doomsvile even worse, so option b is The correct answer.

Members of the International Expansion Research Task Force at Hands-on Corporation come from manufacturing, research and development, marketing, and engineering.. The youngest member is 23 years old; the oldest will retire next spring at age 65. Two of the members have bachelor's degrees, several have no college degree, and one has a doctorate in theology. Based on these factors, the International Expansion Research Task Force should NOT expect ________.

Answers

Answer:

Explanation:

Members of the International Expansion Research Task Force at Hands-on Corporation come from manufacturing, research and development, marketing, and engineering.. The youngest member is 23 years old; the oldest will retire next spring at age 65. Two of the members have bachelor's degrees, several have no college degree, and one has a doctorate in theology. Based on these factors, the International Expansion Research Task Force should NOT expect to have problems that could be attributed to a homogeneous group

The reason being this job ranges across differnt age strata and qualifications, so it is definetly unliketo have issues that are homogenuous in nature.

Baker Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24, respectively. Fixed costs are $320,000. What is the break-even point in composite units

Answers

Answer:

$5,000

Explanation:

3 units of A at ($20-$12) contribution margin per unit = $24

2 units of B at ($30-$18) contribution margin per unit =24

1 unit of C at ($40-$24) contribution margin per unit = 16

contribution margin of a composite unit (sum) = $64

Break even point in composite units=$320,000/$64= $5,000

Therefore the break-even point in composite units is $5,000

Answer:

30,000 units

Explanation:

The break-even point is the units of the products that must be produced and sold to make the total costs to be equal to the total revenue.

Beak-even point can be determined as follows:

Break-even point = total fixed cost / average contribution per unit

Break-even point (units ) = $105,000/125 per unit

average contribution per unit

= contribution from a mix /total units

=(3×( 20-12) + 2×(30- 18)   + 1× (40-24))/(3+2+1)

=$10.667 per unit

Break-even point (units

=  $320,00/10.66

=30000

In the 1930’s "bad psychology" in the business sector overwhelmed the attractiveness of lower interest rates and caused businesses to avoid borrowing money for Investment when they already had too much ___________ relative to AD.

a) money
b) capacity
c) profit
d) none of the above

Answers

Answer:

b) capacity

Explanation:

In the 1930's the impact of the bad decision making and the uncertainties in business sectors brought an overwhelming downfall of the interest rates and stopped borrowing of money the decline of the earning capacity. As the period of the great economic recession took place and was called as the great depression that halted the consumer economy and crested suffering in the standard of living,

A leveraged buyout refers to a(n): a. action where the management of the firm and/or an external party buys all of the assets of a business financed largely with equity. b. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private. c. firm pursuing its core competencies by seeking to build a top management team that comes from a similar background. d. firm restructuring itself by selling off unrelated units of the company's portfolio.

Answers

Answer:

a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.

Explanation:

A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.

Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.

So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken

Jaymes corporation produces high-performance rotors. it expects to produce 69,000 rotors in the coming year. it has invested $11,040,000 to produce rotors. the company has a required return on investment of 20%. what is its roi per unit?

Answers

Answer:

The roi per unit is $ 32

Explanation:

In order to calcuate the roi per unit, first we have to calcuate the income.

Income= Investment×return on investment

          =$11,040,000×20%

          =$2,208,000

After having calculated the income we are then in conditions to calculate the roi per unit.

roi per unit= Income ÷ units produced

                =$2,208,000÷ 69,000

                = $ 32 per unit.

Payments for which the government receives neither goods nor services in return; include Social Security, unemployment compensation, welfare, aid for people with disabilities, child care, foster care, and adoption assistance.True or False?

Answers

Answer:

The answer, in this case, would be True.

Explanation:

Social security,unemployment benefits,disability aid,child care expenses,adoption assistance etc. are all parts of the the public sector or government providence to the general citizens or common people of the country.All of these public sector payments or expenditures are meant for the overall social and economic welfare of the common people or citizens in general.These payments are commonly classified or identified as transfer payments or unilateral payments/expenditures which implies that these are all one way payments or expenditures and the government does not expect any goods or services in return from the common public for providing the concerned services to them.Much of the transfer payments in the economy are financed by public taxes and financial borrowings by the government.

At the current steady state capital-labor ratio, assume that the steady state level of per capita consumption, (C/N)*, is greater than the golden rule level of steady state per capita consumption. Given this information, we can be certain that...A. an increase in the capital-labor ratio will cause an increase in (C/N)*B. the capital labor ratio will tend to increase over timeC. a reduction in the saving rate will have an ambiguous effect on (C/N)*D. the capital labor ratio will tend to decrease over timeE. a reduction in the saving rate will cause a decrease in the steady state level of per capita consumption ((C/N)*)

Answers

Answer:

C) a reduction in the saving rate will have an ambiguous effect on (C/N)*

Explanation:

The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.

Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.

But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.

You paid $25 for your ticket to the football game, only to see your favorite team losing 28-0 at the end of the first quarter. That $25 should now be regarded as a(n) __________ cost that economists say should be __________ in your decision on whether or not to stay at the game or leave.

Answers

Answer:

Sunk; disregarded

Explanation:

Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.

No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.

I hope my answer helps you

What is NOT true about a home filing system? It should be kept in a dry area with good air circulation. It is a place to keep all records including: tax documents, credit card statements, contracts, receipts, instruction manuals, warranties, etc. They require expensive equipment and aren't necessary until you own a home.

Answers

Answer:

The answer in this case,is the first option in the answer list or option or It should be kept in a dry area with good air circulation.

Explanation:

Home filing system is a thorough and intensive process of organizing and sorting of all the important documents,paperwork,forms such as tax papers, credit card statements,official documents etc. in the home in one articular place.It basically involves categorization or classification of all the concerned documents and paperwork in home into proper and appropriate filing system.One of the main objectives of the filing system in home is to identify and categorize each individual document according to separate files where each of the documents belong to so that they are not misplaced or disorganized.Home filing system requires certain equipment such as files,paper folders,shredder,recycling bins,label marker or pens and so on.

Fixed costs including depreciation have increased at Leverage Inc., from $4 million to $5.3 million in an effort to reduce variable costs. What must the new variable cost percentage of sales be to break even from an accounting perspective at $20 million?

Answers

Answer:

VC% = 73.5%

The New variable cost percentage of sales = 73.5%

Explanation:

Given;

New Fixed cost = $5.3 million

Total cost = $20 million

Total variable cost = $20 - $5.3 = $14.7 million

Variable cost percent=(total variable cost/total cost)×100%

VC% = (14.7/20) × 100%

VC% = 73.5%

Answer:

73.5%

Explanation:

Break-even is the level of sales at which the business have no profit no loss. At this point business only covers the the variable and fixed cost.

As we know the break-even sales value  can be calculated as follow:

Break-even sales = Fixed cost / Contribution margin ratio

As per given data

Break-even sales = $20 million

Fixed Cost = $5.3 million

Placing value in the formula

$20 million = $5.3 / Contribution margin ratio

Contribution margin ratio = $5.3 million / $20 million  = 0.265 = 26.5%

As we know

Contribution margin  = Sales - Variable cost

26.5% = 100% - Variable cost ratio

Variable cost ratio = 100% - 26.5% = 73.5%

Higher interest rates would have A. increased profits for firms. B. decreased investment spending by firms and home purchases. C. increased net exports. D. increased inventory spending. The Fed appears to believe that the more​ "potent multiplier​ effect" is associated with A. consumer spending on​ non-durable goods because it is more sensitive to lower interest rates. B. investment spending because it is more sensitive to lower interest rates. C. inventory spending because it is less sensitive to lower interest rates. D. consumer spending on​ non-durable goods because it is less sensitive to lower interest rates.

Answers

Answer:

1.) B. Decreased investment spending by firms and home purchases.

2.) B. Investment spending because it is more sensitive to lower interest rates.

Explanation:

Higher interest rate tends to moderate economic growth, by increasing the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending, this tendency reduces inflationary pressures and cause an appreciation in the exchange rate.

Changes in interest rates can have both positive and negative effect s on the markets. Central banks often change their target interest rates i  response to economic activity: raising rates when the economy is overly strong, and lowering rates when the economy is sluggish.

Lowering rates makes borrowing money cheaper. This encourages consumer and business spending and investment and can boost asset prices.

Lowering rates, however, can also lead to problems such as inflation and liquidity traps, which undermines the effectiveness of low rates.

In 2019, Theresa was in an automobile accident and suffered physical injuries. The accident was caused by Ramon's negligence. In 2020, Theresa collected from his insurance company. She received $15,000 for loss of income, $10,000 for pain and suffering, $50,000 for punitive damages, and $6,000 for medical expenses that she had deducted on her 2019 tax return (the amount in excess of 10% of adjusted gross income). As a result of this, Theresa's 2020 gross income is increased by $56,000. True False

Answers

Answer:

True

Explanation:

The loss of income was refunded from the insurance company and must not appear in the gross income because tax rules gives benefits of such payment receipts. Furthermore, the compensation for suffering and pain is also disallowed expense under the tax rule.

The punitive damages must appear as income in the tax returns and the medical expenses that the person paid initially and set it off in the tax return 2019, must now appear as income because previously it was deducted.

So the total gross income under the tax rules = $50,000 + $6,000

Gross Income = $56,000

Northwestern Lumber Products currently has 18,500 shares of stock outstanding. Patricia, the financial manager, is considering issuing $141,000 of debt at an interest rate of 6.8 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $67,000?

Answers

Answer:

The number of outstanding shares of stock is 2647.44

Explanation:

In this question, we are asked to calculate the number of shares of stocks that will be outstanding once the debt is issued.

We proceed as follows;

Firstly we must know that the Break even EBIT is the EBIT where EPS plan I = EPS plan II

Mathematically;

EBIT*(1-tax rate)/shares = (EBIT-interest rate*debt)*(1-tax rate)/Shares after repurchase

Inputing the values, we have ;

67000*(1-0)/18500=(67000-0.068*141000)*(1-0)/Shares after repurchase

Shares after repurchase = 15852.56

Mathematically;

Shares outstanding = old shares - Shares after repurchase = 18500-15852.56=2647.44

Final answer:

The number of shares of stock outstanding will be 18,500 after the debt is issued.

Explanation:

Using the given information, the total number of shares of stock outstanding can be calculated. The break-even level of EBIT is $67,000, and the interest expense on the debt can be found using the formula:

Interest Expense = Debt amount × Interest Rate

Substituting the values given:

Interest Expense = $141,000 × 6.8% = $9,588

At the break-even level of EBIT, the company's earnings will cover the interest expense. So, the number of shares of stock outstanding will remain the same:

Shares of Stock Outstanding = 18,500

Therefore, the number of shares of stock outstanding will be 18,500 after the debt is issued.

The price that a company charged for a basketball hoop is given by the equation where x is the number of hoops that are produced, in millions. It costs the company $30 to make each basketball hoop. The company recently reduced its production to 1 million hoops but maintained its profit of 15 million dollars. Approximately how many basketball hoops did the company previously produce to make the same profit?

Answers

Answer: 1.3 million

because i know

Answer:

1.3 million hoops

Explanation:

took the test

Which of these statements about California is true? The Gold Rush had little effect on the economy. The people applied for statehood before the Gold Rush began. Prices for supplies during the Gold Rush were very low. Many towns relied on vigilantes for protection from criminals.

Answers

Answer:

Many towns relied on vigilante for protection against criminals

Explanation:

There were no housing accomodations, sanitation was poor, and law enforcement in the mining camps and surrounding areas created a dangerous mix. There were increases in Crime rates in the goldfields.. Vigilante justice was relied upon as the only response to criminal activity as there was no presence of effective law enforcement agents. The gold Rush brought a number of settlers to California.

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market. Pool Line: A) probably has a monopoly per se because of the 90 percent+ market share figures.B) probably has a valid defense of superior skill, foresight, and industry.C) will owe treble damages to the competitors.D) has probably obtained a monopoly illegally.

Answers

Answer:

B) probably has a valid defense of superior skill, foresight, and industry.

Explanation:

Pool Line's competitors bringing suit charging Pool Line with monopolization of the pool cleaning market means pool line probably has a valid defense of superior skill, foresight, and industry to be able to produce cleaning system that is very effective and recommended by all consumer magazines.

Location-based software and applications can help bring a special offer to customers right on their smartphones when they are in the process of making a purchase decision.This best represents which aspect of the 4E framework of social media marketing? A. Experience B. Excite C. Energize D. Educate E. Engage

Answers

Answer:

B. Excite

Explanation:

The 4E framework of social media marketing involves:

Excite - which deals with exciting customers with relevant offers.

Educate - which involves informing them about product and services offerings.

Experience - which involves helping customers experience product or services either directly or indirectly

Engage - which involves engaging customers on a common platform.

In this scenario however, the aspect of 4E explained is Excite. By bringing special offers when customers are about making purchase decision, you're exciting the customer about relevant offers on the taking.

At September 1, 2022, Sunland Company reported Retained Earnings of $406080. During the month, Sunland generated revenues of $57600, incurred expenses of $34560, purchased equipment for $14400 and paid dividends of $5760. What is the balance in Retained Earnings at September 30, 2022

Answers

Answer:

$423,360

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

Ending retained earnings = Beginning retained earnings + additional stock issued + net income - dividend paid

net income is the difference between sales and expenses

= $406080 + $57600 - $34560 - $5760

= $423,360

The following credit sales are budgeted by Swifty Corporation:
January $304000 February 400000 March 520000 April 460000

The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is _______.

Answers

Answer:

$458,000

Explanation:

April

$460,000 x .70 = $322,000

March

$520,000 x .2 = $104,000

February

$400,000 x .08 = $32,000

Addition of APRIL+MARCH+FEBRUARY

$322,000 + $104,000 + $32,000

= $458,000

Therefore the anticipated cash inflow for the month of April is $458,000

When talking about buyer-readiness stage in online lecture, we talked about an advertisement that encourages women to buy rings for themselves. The information provided is targeting which readiness stage? A. Knowledge B. Preference C. Awareness D. Liking E. Conviction 2 points QUESTION 36

Answers

Answer:

The correct answer is letter "E": Conviction.

Explanation:

The buyer-readiness stages describe the steps the marketing department perceives customers follow at the moment of engaging in a purchase thanks to an advertisement. Those stages are: Awareness, Knowledge, Liking, Preference, Conviction, Purchase. In the conviction stage, promotions are intended to convince consumers that the product is suitable for them. The advertisement attempts to make consumers feel comfortable with the purchase decision. Then, encouraging women to buy rings for themselves is part of this stage.

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,800 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:

Answers

Answer:

Journal Entry

May 3

Dr. Allowance for doubtful accounts   $2,800

Cr. Account Receivable                        $2,800

Explanation:

When a receivable of the business is considered to be non-collectible from a customer, it is written off from the accounts. This event will decrease the account receivable balance and allowance for the doubtful accounts too. a Debit entry in the Allowance for doubtful account and a credit entry in accounts receivable is made to incorporate the effect of this transaction.

GlobeTrekkers, Inc. has employees all over the world. Employees have face-to-face meetings on occasion, but they communicate with each other mostly via conference call, email, and webcasts. These employees ________.

Answers

Answer:

Form a virtual team

Explanation:

Virtual team can be defined as a group of workers or employees who work together with a common purpose but are separated by location. Virtual team can also be called "remote team" or "geographically dispersed team", or "telecommuting".

It refers to a group of people working on similar project but are situated in different locations of the world. Virtual team is made possible with the advent of technology. All members of the team communicate with the use of technology such as video conference call, email, webcasts and other forms of technological communication.

Virtual team does not require the physical presence of the team members since communication is done online. This allows employees some form of freedom and shift between jobs(that is have more than one job). It allows workers have time to handle their personal matters.

Employers of virtual team workers also benefit from reduced cost of operation. The employer doesn't have to provide offices for each staff members.

Answer:

The employees are a virtual team.

Explanation:

A virtual team is made up of a group of individuals who are dispersed in different geographic locations but can effectively work together on a project from their different locations.  In other words, they can all work together or collaborate on a project from a distance (without gathering at a geographical location).

The work of a virtual team is made possible through communication technology like fax, email, voice or video conferencing services (for face to face meeting) as well as webcast.

Which of the following techniques can be used to narrow options for increased decision-making effectiveness? A. Applying different analytical approaches. B. Using weighted voting or multivoting techniques. C. Agreeing on a set of win/lose techniques. D. Conducting brainstorming sessions.

Answers

Answer:

A. Applying different analytical approaches.

Explanation:

In decision making, it is advisable to apply different analytical approaches. In doing this, you are able to know the pros and cons of the different approaches.

This will thus help one narrow options for increased decision-making effectiveness.

Let's break it down into more technical terms, Demand work like this, it is the prices that the consumers are willing and able to purchase goods and services at, and that brings us to the law of demand which is that the demand and price can vary. Determinants of Demand is a shift that only occurs when one or more of the Determinants of Demand changes. Determinants have five major key points which are?

Answers

Answer:

-Income of buyers

-Consumer expectation

-Taste of consumers

-Price of the goods or services

-Price of related goods or services

Explanation:

Income of buyers: When there is a rise in income of buyer then demand would increase. Also when there is a fall in buyer's income, demand would decrease.

Consumer expectation: If consumers perceive that there would likely be an amount increase in price of certain commodities then demand for such commodities would increase now.

Taste of consumers: If the taste, preference or emotions of buyers changes in favour of a product then there would be increase in demand for such product and vice versa.

Price of the goods or services: The higher the price of a product, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Price of related goods or services: When there is an increase in the price of goods that are related, demand for the goods with lower price will increase

Crowding out is a phenomenon: a where an increase in government's budget deficit causes the overall investment spending to fall. b where an increase in government spending causes an equal decrease in consumption spending. c where overproduction in the goods market leads to a sharp drop in the aggregate price level. d where an increase in imports causes the overall domestic production to fall. e where an increase in government's budget surplus decreases the overall investment spending.

Answers

Answer:

A. where an increase in government's budget deficit causes the overall investment spending to fall.

Explanation:

Crowding out is a situation in an economy that describes where consumption of goods and services falls and business investments are decreased/fall because government spending goes up and deficit financing takes up all available financial resources thereby causing interest rates to go up.

In other words increased government spending causes private sector spending to fall.

Answer:

A

Explanation:

Crowding out implies an increase in interest rate , less borrowing and less private investment as a result of government's budget deficit.

It is a phenomenon where an increase in government's budget deficit cause the overall investment to fall as it demands for  borrowing to fund budget.

This can also be explained as when government's involvement in a particular sector of the market affects the other sector of the market.

The __________ phase is probably the single most important determinant of shareholder value creation in mergers and acquisitions. a. post-acquisition restructuring b. post-acquisition integration. c. pre-acquisition negotiations d. pre-acquisition due diligence

Answers

Answer: Post acquisition integration (B)

Explanation:

Post acquisition integration is a complex process of rearranging and combining businesses to materialize the potential efficiencies and synergies which usually motivate acquisitions and mergers.

The process, is usually lengthy and resource intensive. The importance of post acquisition integration cannot be understated, as it allows an acquiror to acquire the long-term value that he or she seeks from the transaction. It is a vital determinant on value creation for the shareholders in acquisitions and mergers.

Answer:

B. Post acquisition Integration

Explanation:

Post acquisition Integration involves combining the operations, workings and system of the business pr organization that has been acquired with the organization that acquired it (acquirer). It is very important as it allows for the acquirer to picture the long term value sought from the acquisition of the organization. Hence, why it is probably the single most important determinant of shareholder value creation in mergers and acquisitions. Failures in post acquisition Integration opportunities been missed and low performance in operation of the organization as a whole.

AutomatedFry Inc. is the leading manufacturer of ventless deep fryers. It has developed a new high-capacity fryer. To identify the prospective clients for its latest product, it sends out brochures to thousands of food-service managers along with a detachable card that the managers can use to request more information. Based on this information, AutomatedFry Inc. is involved in the _____ step of the selling process.​

Answers

Answer:

Lead generation.

Explanation:

Selling process can be defined as the steps which must be taken by a sales representative when selling a particular product. The selling process begins with identification of potential customers that are willing to purchase the product.

Lead generation is the process of getting customers to buy a product, It involves creating an awareness of the product. This is the initial stage of a selling process.

Lead generation begins with identifying the group of customers to sell to, marketing your products through different mediums, maintaining constant communication with the customers.

Research suggests that, on average, acquisitions increased the market value of target firms by about ________ percent and ________. A. 50; left the market value of the bidding firms unchanged B. 25; left the market value of the bidding firms unchanged C. 50; increased the market value of the bidding firms by 25 percent D. 25; increased the market value of the bidding firms by 15 percent

Answers

Answer:

B. 25; left the market value of the bidding firms unchanged.

Explanation:

Research suggests that, on average, acquisitions increased the market value of target firms by 25% and left the market value of the bidding firms unchanged.

This simply means, a target firm's market value increases by 25 percent as soon as a bidding firm shows interest in acquiring or buying it while the bidding firm' market value remains the same.

Halo Beverages has two divisions, North and South, which share the common costs of the company's computer support. The total cost of computer support is $4,000,000 a year. The North Division fields 3,800 help desk calls per year and uses 18,200 hours of network time. The South Division fields 4,200 desk help calls per year and uses 21,800 hours of network time. What is the amount of cost that will be allocated to the North Division if fixed computer support costs of $2,500,000 are allocated on the basis of number of calls and the remaining costs (all variable) are allocated on the basis of number of hours on the network

Answers

Answer: $1,870,000

Explanation:

Total cost of computer support = $4,000,000

North division = 3800 calls per year

North division = 18,200 hours network time

South division = 4200 calls per year

South division = 21,800 hours network time

Total amount allocated on basis of number of calls = $2,500,000

Tot allocated on basis of network time =

$4,000,000 - $2,500,000 = $1,500,000

Total amount allocated to North division =

[(2,500,000/(3800+4200)) × 3800] + [(1,500,000 / (18,200+21,800)) × 18,200]

(312.5 × 3800) + (37.5 × 18200)

$1,187,500 + $682500 = $1,870,000

$1,870,000

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