BUSINESS COLLEGE

Which of the following categories in the portfolio matrix is a market leader and growing fast?a.Star
b.Meteor
c.Cash cow
d.Shiner
e.Top dog

Answers

Answer 1
Answer:

Answer:

It is Star (B)

Explanation:

Option (a) True. Star is a product with high relative market share in a high growing market . This product is full of potential but require more investment and spending in the areas of advertising,innovation and  market research in order to maintain its market leadership position. Hence, it might be cash neutral at this stage.

In the long-run, it will eventually turns to cash cow in the portfolio if we can sustain its position.

Option(b) Meteor. False. This does not exist in product portfolio matrix.

Option (c) Cash cow. False.

This product has a large relative market share in a stagnating (mature) market, profits and cash flows are expected to be high. Because of the lower growth rate, investments needed should also be low.

Hence, they  typically generate cash in excess of the amount of cash needed to maintain the business and this  ‘excess cash’ is supposed to be ‘milked’ from the Cash Cow for investments in other business units (Stars and Question Marks). Cash Cows ultimately bring balance and stability to a portfolio.

Option (d) Shiner. False .It does not exist

Option (e) Top dog. It is a product with low relative market share in a stagnant market.

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On October 1, 2018, Hill Company borrows $20,000 from a local bank. The note has an interest rate of 6% and is due in one year. How much interest expense will Hill Company report on its 2018 income statement?

Answers

Answer:

Amount of interest = $ 300

Explanation:

Given:

Total number of month = 3 months (Oct, Nov and Dec)

Amount borrow = $20,000

Interest rate = 6%

Find:

Amount of interest

Computation:

Amount of interest = $20,000 x 6% x 3 months / 12 months

Amount of interest = $ 300

______________ is/are an example of a detective control. a. Physical access controls b. Encryption c. Log analysis d. Emergency response teams

Answers

Answer:

(C) Log Analysis

Explanation:

  • Detective Control: An accounting term used to find problems within a company's processes

Log Analysis is a computer management system that logs records. This log analysis records everything, so if there is an ongoing problem, it will be recorded. Once its recorded and known, a solution can be provided.

Crystal Glassware Company issues $1,042,000 of its 14%, 10-year bonds at 97 on February 28,2019. The bonds pay interest on February 28 and August 31. Assume that Crystal uses thestraight-line method for amortization. What net amount will be reported for the bonds on theAugust 31, 2019 balance sheet?A) $1,010,740 B) $1,012,303 C) $1,009,177 D) $1,042,000

Answers

Answer:

The correct option is B. $1,012,303

Explanation:

For computing the net amount, the following calculations are need to be done which is shown below:

1. Calculation the total value of bond which equals to

= Issue amount × price

= $1,042,000 × (97 ÷ 100)

= $1,010,740

2. Now compute the discount which shown below:

= Issue amount - total value

= $1,042,000 - $1,010,740

= $31,260

3. Then, compute the semiannual discount amount by applying the straight line method

= Discount value ÷ number of years

where,

number of year would be multiply by 2 = 2 × 10 = 20 years

So, the value would be equal to

= $31,260 ÷ 20 years

= $1,563

4. So, the net amount would be

= Total value of bond + semiannual discount

=  $1,010,740 +  $1,563

= $1,012,303

Hence, the net amount will be reported for the bonds on the August 31, 2019 balance sheet is $1,012,303

Therefore, the correct option is B. $1,012,303

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.5 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.7 million to build, and the site requires $920,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Answers

Answer:

$33,120,000

Explanation:

Calculation for What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Using this formula

Proper Cash Flow Amount = (Expected Cost of Selling + Cost of Building Manufacturing Plant + Cost of Grading)

Let plug in the formula

Proper Cash Flow Amount = ($10,500,000 + $21,700,000 + $920,000)

Proper Cash Flow Amount = $33,120,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $33,120,000

Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes per year. The bikes cost $260 each to make: $180 in variable costs per bike and $80 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 320 bikes for $460 each. Incremental fixed costs to make this order are $48,000. No other costs will change if this order is accepted.Required:
Compute Radar’s additional income (ignore taxes) if it accepts this order.

Answers

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs.  The resulting additional income is what is available to offset the fixed costs.

Tell me tree critical risk that organization are likely to face in determination of requirement

Answers

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