Which of the following is NOT one of the 10 strategic operations management​ decisions? A. supply chain management B. layout str

Net income or (Loss) = $43,128. The provided information states that: Elegant Decor Company Forecasted annual income statement Under the strategy to eliminate Department 200 Sales = $437,000 Cost of goods sold = $261,000 Gross profit = $176,000 Operating expenses Direct expenses: Advertising = $15,500 Store supplies utilized = $4,500 Depreciation of Store Equipment = $4,200 Total Direct Expense = $24,200 Allocated Expenses: Sales Salaries = $64,000 ($104,000-2×$24,200+($31,200÷2) = $40,000) (104,000-$40,000) Rental Expenses = $14,180 Bad debt expense = $9,400 Office salary = $15,600 ($31,200 - ($31,200 ÷ 2)) Insurance expense = $1,724 ($2,200 - $476) Miscellaneous expense = $3,728 ($4,000 - $272) Total Allocated Expenses = $108,632 Total Expense = $132,872 ($108,632 + $24,200) Net income or (Loss) = $43,128 ($176,000 - $132,872)

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

To find the average return, take the increase in value over the base, divided by the base

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

Answer: The assertion in the question is false.

Explanation: In calculating interest expenses using the effective interest rate method of amortization, the market interest rate is applied, multiplied by the bond value at the start of the respective period. The question incorrectly states that the face value is considered, which is inaccurate.

Thus, the claim in the question is false.

Response:

Option A

Clarification:

Complete Query

A university surveys its students, finding that a 10 percent increase in tuition would result in a 12 percent drop in enrollment. If the aim is to boost overall revenue, the university should ________ tuition because the demand for education here is ________.

A) not increase; elastic   B) increase; inelastic   C) not increase; inelastic   D) increase; elastic

Solution -

The demand for college education is elastic, meaning changes in tuition significantly influence demand. Raising tuition leads to a drop in enrollment, indicating that demand is not stable based solely on quality. Hence, the demand will not rise with a tuition increase, showing elasticity in demand.

Answer:

The impact on the accounting equation is as follows:

Assets $-1,005 (decline) = Liabilities $3,150 (increase) + Retained earnings $-4,155 (decline)

The necessary journal entries are outlined as below:

Explanation:

The accounting equation represents a company's balance sheet, stating that total assets equal liabilities plus equity.

Scenario (a)

Debit Prepaid insurance $6,200

Credit Cash $6,200

(To document payment for a one-year insurance policy)

Debit Insurance expense (0.25 × $6,200) $1,550

Credit Prepaid insurance $1,550

(To record the amortization of prepaid insurance - October to December)

Scenario (b)

Debit Cash $5,000

Credit Unearned revenue $5,000

(To document unearned service revenue)

Debit Unearned revenue (0.75 × $5,000) $3,750

Credit Sales revenue $3,750

(To record the amortization of unearned service revenue)

Scenario (c)

Debit Supplies $1,900

Credit Accounts payable $1,900

(To account for the purchase of supplies on credit)

Debit Supplies expenses ($1,900 - $245) $1,655

Credit Supplies $1,655

(To record the amortization of purchased supplies)

Scenario (d)

Debit Prepaid lease $11,280

Credit Cash $11,280

(Prepayment for office space)

Debit Rent paid (5/12 × $11,280) $4,700

Credit Prepaid lease $4,700

(To record amortization of prepaid office space from August to December)

The accounting equation based on the formula: Assets = Liabilities + Equity

Cash -$6,200 + $5,000 - $11,280 + Prepayment $6,200 - $1,550 + $11,280 - $4700 + Supplies $1,900 - $1,655 = Unearned revenue $5,000 - $3,750 + Accounts payable $1,900

Cash $-12,480 + Prepayment $11,230 + Supplies $245 = Unearned revenue $1,250 + Accounts payable $1,900 + Retained earnings $-4,155

Assets $-1,005 (decline) = Liabilities $3,150 (increase) + Retained earnings $-4,155 (decline)