What are the retained earnings merits and demerits
class 11

Following are the merits and demerits of retained earning.

Explanation:

Overall, retained earning has very few demerits compared to merits.

Merits: It helps to reduce the cost of external equity. It helps to eliminate the negative effects of under-pricing. It also helps to keep the same ownership structure.

Demerits: It is an improper way of utilising the remaining funds and it can be misused by the management.

15 pounds of apples and 6 cups of flour

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.