Product life cycle:
Every corporation in its operational life cycle has to pass through various phases known as “Product life cycle”. There are various stages of product life cycle like introductory phase, Growth phase, maturity phase and decline phase.
Introductory phase:
In this stage, there will be negative
Growth phase:
In this stage, the company generates certain amount of cash for running the business operations. In this stage, the net income will be higher than the cash flow from operating activities.
Maturity phase:
In this stage, the volume of sales will be at its highest peak. In this stage, net income and cash flow from operating activities will be almost similar. The cash flow from operating activities will be higher. Therefore the company will plan to pay dividends to its shareholders’ or redeem a debt or even plan for buyback of its stock.
Decline phase:
In this stage, the profits and volume of sales starts to decline or decrease. The cash flow from operating activities also decreases. Therefore the cash flow from financing activities might be negative as it pays for dividend and buy back of stock. But cash flow from investing activities might be positive as the company would try to increase its
To state: the present stage of product life cycle TR Industries.
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Chapter 12 Solutions
Financial Accounting
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- Answer? ? Financial accounting questionarrow_forwardThe following data relate to direct materials costs for February: Materials cost per yard: standard, $1.98; actual, $2.04 Standard yards per unit: standard, 4.74 yards; actual, 5.14 yards Units of production: 9,300 Calculate the direct materials price variance. a. $558.00 unfavorable b. $2,644.92 favorable c. $2,868.12 favorable d. $2,868.12 unfavorablearrow_forwardAt October 1, Bonita company reported owners equity of $70,000. During October, the owner made additional investments of $4,300 and the company earned a net income of $13,900. If the owner's equity at October 31 totals $80,700, what amount of owner's drawings were made during the month?arrow_forward
- General Account - At October 1, Bonita company reported owners equity of $70,000. During October, the owner made additional investments of $4,300 and the company earned a net income of $13,900. If the owner's equity at October 31 totals $80,700, what amount of owner's drawings were made during the month?arrow_forwardWhat is the total amount of capital raised on these financial accounting question?arrow_forwardwant general account answerarrow_forward
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