How does the statement of retained earnings relate to the income statement and the balance sheet?
The statement of retained earnings provides a link between the income statement and the balance sheet. Specifically, it takes the net income figure from the income statement and uses it (along with dividends) to arrive at the retained earnings figure to be presented on the balance sheet.
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Selected data for Sorenta, Inc and New World Corp, two companies in the same industry, are presented below: Sorenta, Inc New World Corp Sales $50,000 $80,000 Cost of goods sold 30,000 50,000 Average inventory balance 5,000 5,000 Based on this data, which statement below is true?
a. New World Corp sells its inventory faster than Sorenta, Inc. b. Sorenta, Inc. has a lower gross profit ratio than New World Corp. c. Sorenta, Inc. has lower storage costs and a lower investment in inventory than New World Corp. d. New World Corp has a higher net income than Sorenta, Inc.
Service providers invest large amounts of money in training employees because ________.
A. they lose business and revenue if they do not meet the service expectations of customers B. consumers act on impulse and purchase any product or service that they desire to buy C. they are unaffected by the economic recession and massive job losses D. a larger number of consumers are opting to buy rather than rent homes and cars
A problem with S-curves is that ______.
A. interpreting them is not always self-evident B. managers do not know how to use them C. they capture little financial or cost information D. they are not audited
Mail surveys can be a difficult foreign market research tool because
A. response validity is lower on mail surveys. B. commercially generated mail is not welcomed in some areas. C. mail deliveries can take weeks and have low response rates. D. response bias may be excessive or require payment.