Wild Bears, Inc., a company inAlaska, is reviewing its financialreports for the year 2013. Theyspecialize in providing bike rentalsand tours throughout a smallAlaskan village. Total sales for theyear were $250,000, with averagesales of $62,500 per quarter. Howwould you expect Q1 sales tocompare to the average level ofsales per quarter?

To determine how Q1 sales would compare to the average level of sales per quarter, we need to…

Answered: Wild Bears, Inc., a company in Alaska,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S. Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mrs. Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
BrightLine Medical Products delivers medical supplies to small offices across the metro area. The typical BrightLine customer orders $1,200 worth of supplies in the average month. BrightLine believes that the average customer stays with BrightLine for 2.4 years. What is BrightLine's MONTHLY CHURN RATE for these small office customers? (Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.) ANSWER IS: (3.5), but HOW is that the answer? Please explain.
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fi
Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…
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Without calculations, determine the contribution margin at the break-even point. Break-even point $
Charle's Furniture Store has been In business for several years. The firm's owners have described the store as a "high-price, high- service" operatlon that provides lots of assistance to Its customers. Margin has averaged a relatively high 29% per year for several years, but turnover has been a relatively low 0.6 based on average total assets of $800,000. A discount furniture Store is about to open in the area served by Charlie's, and management Is considering lowering prices to compete effectively. Required: a. Calculate current sales and ROI for Charlie's Furniture Store. b. Assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROl as Charlie's currently earns. c. Suppose you presented the results of your analysis in parts a and b of this problem to Charle, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to Increase my…
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CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. The company's management team is seeking guidance on the use of financial performance measures to identify the key drivers of the company's financial performance and develop a strategy to improve it. The following data relate to the company for the year 2022: In its clothing division, the company has $6,000,000 invested in assets. After-tax operating income from sales of clothing in 2022 is $900,000. Income for the clothing division has grown steadily over the last few years. The cosmetics division has $14,000,000 invested in assets and an after-tax operating income in 2022 of $1,900,000. The weighted-average cost of capital for CarniTrin is 10% and the 2021’s after-tax return on investment for each division was 15%. The general manager of CarniTrin has asserted that in the future, managers should have their compensation structure aligned with their performance measures with no fixed salaries. However,…

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