Answer:
Segment Income statement
Explanation:
In segment reporting, common costs were not allocated. Both the segments have a positive margin which is covering all its variable cost and contributing towards the common fixed cost but excluding common fixed cost which is non-traceable and are allocated to the segment.
Segment Income Statement
Computer Division Printer Division Total
Revenue $1,100,000 $750,000 1850,000
Variable cost (525,000) (312,000) 837,000
Contribution margin 575000 438000 1,013,000
Costs unique to each division (450,000) (375,000) 825,000
Segment Margin 125,000 63,000 188,000
Fixed Cost (60,000) (60,000) 120,000
Net Income 65,000 3,000 68,000
If common fixed cost is fixed by 50,000 and 70,000 for computer and printer division respectively then
Segment Margin 125,000 63,000 188,000
Common fixed cost 70,000 50,000 120,000
Net Income 55,000 13,000 68,000
Why is it smart to keep you cool when making claim, and how should you go about it?
Answer:
Explanation:
Keeping cool while making a claim ensures clear explaination and direct tone of the message, which when directed towards the company. It helps the insurer work peacefully. Insurer will be happy to clear the claims of people who are cooperative and don't overplay with the value of the claim.
Which of the following indicates a website is NOT secure?
Answer:
a) a lock icon is not displayed in the address bar
(d) the url of the website begins with http
Explanation:
The lock item in the address bar is proof that the communication between your computer and the website is secure because it indicates that the communication is encrypted. If it is not there therefore, the communication is not secure.
Websites with Hypertext Transfer Protocol Secure (HTTPS) are secured as the communication is encrypted by the use of Transport Layer Security unlike websites with the basic HTTP. Visits to such sites are therefore riskier as there is a higher chance of information theft.
The website is not secure when its not displaying a lock, missing an updated SSL and does start with an HTTP instead of HTTPS.
There are many methods of checking that a website is secure is not correct by the use of various software tools like domain blocker, website checker etc.Hence the option D is correct that is the URL of the website begins with HTTP.
Learn more about the indicates a website is NOT secure.
brainly.com/question/12655730.
There is is an acronym that helps you analyze business communication situations. What does each letter in the acronym stand for?A. planning, audience, information, debate, objections, contextB. planning, audience, identity, benefits, contextC. purpose, audience, information, benefits, objections, contextD. None of the above.
Answer:
D. None of the above.
Explanation:
The more likely acronym that is been referred to here which helps one analyze business communication situations is ACE, which stands for;
A- Analyzing,
C- Composing, and
E- Evaluating.
Thus, since this isn't among the options, the correct answer is option D.
One billion hours of labor are available for making products in Mandovia, and 2 billion hours of labor are available for making products in Ducennia. In a no-trade world, let’s assume that half the labor in each country gets used to make each product. Calculate the output of rotids and taurons, rounding to one decimal place.
Answer:
Mandovia
Rotid
Mandovia total labor hours is 1 billion which is to be divided equally to make one product so 500 million hours per product. It takes 50 hours to make one rotid so with 500 million;
= 500,000,000/50
= 10,000,000 rotids
Taurons
= 500,000,000/100
= 5,000,000 taurons
Ducennia
Rotids
Ducennia total labor hours is 2 billion which is to be divided equally to make one product so 1 billion hours per product. It takes 150 hours to make one rotid so with 1 billion hours will be;
= 1,000,000,000/150
= 6,666,666.7
= 6.7 million rotids
Taurons
= 1,000,000,000/20
= 50,000,000 taurons
Wnich of these skills is the cognitive ability to see the organization as a whole and the relationship amon parts? a. Human b. Resource allocation c. Conceptual d. Negotiation e. Technical
Answer:
c. Conceptual
Explanation:
The skill that best suits the cognitive ability to see the organization as a whole and the relationship between the parties is the conceptual skill.
This is an essential skill for managers who will manage the systems that comprise the organization, because through conceptual skill it is possible to learn through experience, planning, innovation through ideas and solutions, which can help the manager to order the leadership and decision-making process effectively for the company as a whole, in addition to facilitating the process of assertive communication aimed at employee engagement and other variables that promote continuous improvement in the company.
Telecommunications equipment manufacturers in the USA sell their products to people who live in Canada. Is Canada an export?
Answer:
FALSE
Explanation:
NO Canada is NOT an export because the Telecommunications equipment was produced in USA and not in CANADA which means that the USA is an export because USA manufactured or produced the TELECOMMUNICATIONS EQUIPMENT which was then sold to another country which is Canada, Based on this we can defined EXPORT as a trade that occur between two countries in which a country produced good or service in which such goods or service produced by this country is been sold to another country just as in the case of USA which produced Telecommunications equipment which was then sold to Canada which means that the USA which is the manufacturer of the Telecommunications equipment sold to Canada is the EXPORT.
Example of TELECOMMUNICATIONS EQUIPMENT include the following;
Routers,Telecommunication towers, Switches among other.
You can buy property today for $2.1 million and sell it in 6 years for $3.1 million. A. If the interest rate is 11%, what is the present value of the sales price?
B. What is the present value of the future cash flows, if you also could earn $110,000 per year rent on the property?
Answer:
Present value of sales price = 465,395.16
Present Value of future cash flow= 465,359.16
Explanation:
The present value of a sum expected in the future is the worth today given an opportunity cost interest rate. In another words ,it is amount receivable today that would make the investor to be indifferent between the amount receivable today and the future sum.
The present value of a lump sum can be worked out as follows:
PV = FV × (1+r)^(-n)
Present Value of sales price= 3.1 × 1.11^(-6) =1.65739
Present Value=165,738.65
Present Value of an annuity of 110,000 for 6 years:
PV = A × 1- ( (1+r)^(-n))/r
PV = 110,000× (1-1.11^(-6))/0.11= 465,359.16
PV = 465,359.16
Strategic,tactical,and operational are the ____.A) three levels of planningB) levels of diversityC) strategic levelsD) three levels of marketingE) phases of the environment
Answer:
three levels of planning
Explanation:
The three levels of planning are
Strategic,tactical,and operational.
Planning process in management involves the settings of goals that need to be achieved in an organization.
It should be noted that three levels of planning are
1)Strategic
2),tactical
3) operational
All these levels are needed for planning process to be effective.
Tactical level of planning involves the analysis of the short term actions that are required for the set goals to be achieved.
Strategic level of planning provide direction for the business, it helps in good utilization of resources.
Operational level of planning helps to define the goals.
Student-specific scholarships are awarded to students who
have impressive athletic accomplishments.
have impressive academic achievements.
demonstrates a specific skill
are members of a certain group.
Answer:
d
Explanation:
Answer: D
Explanation:
On Edge
What other types of auditing careers are available to those who are qualified?
Answer:
Performing Forensic accounting, a compliance audit, operational audit, a financial statement audit etc.
Explanation:
The other types of auditing career available to those who are qualified are performing forensic accounting, operational audit, a financial statement audit, risk assessment service, a compliance auditing etc.
Operational audit. Here, an auditor examines an organization's operation processes, with a view to providing improvement in its operations in terms of efficiency and effectiveness.
Forensic accounting . This type of auditing involves an auditor, using his or her investigative skills, auditing skill to unravel or investigate transactions that are suspicious mostly as a result of dispute or litigation.
Compliance audit. In this type of audit practise, an auditor ensures that various he reviews various regulatory policies, whether they are complied with by his or her organization.
Financial statement audit. Here, an external auditor examines the financial statement of a company together with its notes by attesting to whether the statements are fairly prepared .
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2015, 2014, and 2013
2015 2014 2013
Sales $394,258 $302,034 $209,600
Cost of goods sold 237,343 189,375 134,144
Gross profit 156,915 112,659 75,456
Selling expenses 55,985 41,681 27,667
Administrative expenses 35,483 26,579 17,397
Total expenses 91,468 68,260 45,064
Income before taxes 65,447 44,399 30,392
Income taxes 12,173 9,102 6,170
Net income $53,274 $35,297 $24,222
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2015, 2014, and 2013
2015 2014 2013
Assets
Current assets $47,712 $37,329 $49,900
Long-term investments 0 800 4,670
Plant assets, net 88,608 94,243 55,100
Total assets $136,320 $132,372 $109,670
Liabilities and Equity
Current liabilities $19,903 $19,723 $19,192
Common stock 68,000 68,000 50,000
Other paid-in capital 8,500 8,500 5,556
Retained earnings 39,917 36,149 34,922
Total liabilities and equity $ 136,320 $132,372 $109,670
a. Complete the below table to calculate income statement data in common-size percents. KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2015, 2014, and 2013 2015 2014 2013Sales _____% _____ % _____ %Cost of goods sold _____ -1 _____ -1 _____ -1Gross profit Selling expenses _____ -1 _____ -1 _____ -1Administrative expenses _____ -1 _____ -1 _____ -1Total expenses Income before taxes _____ -1 _____ -1 _____ -1Income taxes _____ -1 _____ -1 _____ -1Net income _____ % _____ % _____ %
Answer:
The Common size income statement would express each item in a period as a percentage of the sales for the period.
I have attached it so the proper format is preserved.
For each of the following items, indicate the element of the accounting equation to which it belongs: Assets, Liabilities or Stockholders' Equity.
Assets
Liabilities
Stockholders' Equity
Accounts Payable
Accounts Receivable
Auto Expense
Common Stock
Cash
Dividends
Fees Earned
Land
Miscellaneous Expense
Supplies
Supplies Expense
Wages Expense
Answer:
Assets in a company are those things owned by a company to enable it make profit.
Liabilities refer to those amounts and objects owed to other entities.
Equity refers to amounts and objects that represent shareholder interest. Any item that would be in the income statement is equity related because it is related to the net income which is an equity amount.
1. Accounts Payable - Liability as it is owed by the company .
2. Accounts Receivable - Asset as it is owed to the company.
3. Auto Expense - Stockholders' Equity as it is a part of net income.
4. Common Stock - Stockholders' Equity as it represents ownership in company.
5. Cash - Asset
6. Dividends - Stockholders' Equity as it is money paid to shareholders.
7. Fees Earned - Stockholders' Equity as it is part of the net income.
8. Land - Asset as it is owned by the company to generate profit.
9. Miscellaneous Expense - Stockholders' Equity as it is part of the net income.
10. Supplies - Assets as it is owned by the company to generate profit.
11. Supplies Expense - Stockholders' Equity as it is part of the net income.
12. Wages Expense - Stockholders' Equity as it is part of the net income.
Net income equals: Question 2 options: Cash receipts minus cash payments. Assets minus liabilities. Revenues minus cost of goods sold. Revenues minus expenses.
Answer:
Revenues minus expenses.
Explanation:
Net income = Revenue - (cost of goods sold + selling, general and administrative expenses + depreciation + net interest expense + income tax)
Revenues minus cost of goods sold gives gross profit
Assets minus liabilities gives shareholders equity
Training and development are roles filled by human resource specialists true or false
Classify each of the following costs as relevant or irrelevant to the decision at hand and briefly explain your reason. a. The purchase price of the old computer when replacing it with a new computer with improved features b. The cost of renovations when deciding whether to build a new office building or to renovate the existing office building c. The original cost of the current stove when selecting a new, more efficient stove for a restaurant d. Local tax incentives when selecting the location of a new office complex for a company’s headquarters e. The fair market value (trade-in value) of the existing forklift when deciding whether to replace it with a new, more efficient model f. Fuel economy when purchasing new trucks for the delivery fleet g. The cost of production when determining whether to continue to manufacture the screen for a smartphone or to purchase it from an outside supplier h. The cost of land when determining where to build a new call center i. The average cost of vehicle operation when purchasing a new delivery van j. Real estate property tax rates when selecting the location for a new order processing center
Answer:
a. The purchase price of the old computer when replacing it with a new computer with improved features - Irrelevant cost
Sunk costs are considered irrelevant and the price of the old computer is a sunk cost as it has already been incurred.
b. The cost of renovations when deciding whether to build a new office building or to renovate the existing office building - Relevant
The cost of renovations will help the company decide which alternative is cheaper between building a new office or renovating.
c. The original cost of the current stove when selecting a new, more efficient stove for a restaurant. - Irrelevant
Like the first, this is a sunk cost so it is irrelevant.
d. Local tax incentives when selecting the location of a new office complex for a company’s headquarters. - Relevant
Local tax incentives could reduce cost of operation so is relevant when choosing headquarter location.
e. The fair market value (trade-in value) of the existing forklift when deciding whether to replace it with a new, more efficient model. - Relevant
The existing machine can be traded in for part of the cost of a new one using its market value to reduce the cost of the new one. It is relevant.
f. Fuel economy when purchasing new trucks for the delivery fleet. - Relevant.
Higher fuel economy can reduce cost of transportation so is a relevant cost.
g. The cost of production when determining whether to continue to manufacture the screen for a smartphone or to purchase it from an outside supplier. - Relevant.
This is a relevant cost because the it will help the company decide the cheaper alternative.
h. The cost of land when determining where to build a new call center. - Relevant.
Some land will be in areas that will have higher real estate prices. Your preferred cost of land will help determine which areas to look for locations in.
i. The average cost of vehicle operation when purchasing a new delivery van. - Relevant.
If this cost is too high it will increase expenses. It is a relevant cost to note for cost maximisation.
j. Real estate property tax rates when selecting the location for a new order processing center. - Relevant
Real estate taxes need to be known so that cost estimation can be made on the order processing center.
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,100 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,540. Factory janitorial costs are $1,420 monthly. Advertising costs for the audio system will be $8,850 per month. The factory building depreciation expense is $6,720 per year. Property taxes on the factory building will be $8,400 per year. Assuming that Bell manufactures, on average, 1,450 audio systems per month, identify and itemize the product costs, direct materials, direct labor, manufacturing overhead, and period costs.
Answer:
product costs per month
direct materials = $77 x 1,450 = $111,650 direct labor = $14 x 6 x 1,450 = $121,800manufacturing overhead = $5,100 + ($6 x 1,450) + $3,540 + $1,420 + ($6,720/12) + ($8,400/12) = $20,020total product costs per month = $253,470period costs
advertising = $8,850Product costs are all the costs that a company incurs in manufacturing a certain product, in this case the audio systems. Product costs include direct materials, direct labor and manufacturing overhead. Period costs are all other expenses incurred by the company that are not related to the production process.
Which of the following has primary responsibility for financing economic developement on behalf of the international community?a. The International Monetary Fundb. The world trade organizationc. The World Bankd. The international Fund Organization
Answer:
c. The World Bank
Explanation:
The World Bank has the primary responsibility of ensuring economic development of its member countries on behalf of the international community.
It is made up of five institutions:
The International Bank for Reconstruction and Development
The International Development Association
The International Finance Corporation
The Multilateral Investment Guarantee Agency
The International Centre for Settlement of Investment Disputes
These institutions support economic development by providing interest free loans to poor countries, promotion of foreign direct investment in developing countries, and lending to credit worthy low income countries.
Baldwin Printing Company uses a job order costing system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following:"Direct material costs $1,000Direct labor costs 1,500Actual overhead 1,980Machine hours 450The accountant calculated the inventory cost of this order to be $4.30 per unit. The annual budgeted overhead in dollars was;__________a) $577,500b) $600,000c) $645,000d) $660,000
Answer:
total estimated overhead costs for the period= $600,000
Explanation:
First, we need to determine the allocated overhead for the order:
Total cost= direct material + direct labor + allocated overhead
4,300= 1,000 + 1,500 + allocated overhead
allocated overhead= 4,300 - 1,000 - 1,500
allocated overhead= 1,800
Now, we can determine the allocation rate:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
1,800= Estimated manufacturing overhead rate*450
1,800/450= Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $4 per machine hour
Finally, the budgeted manufacturing overhead:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
4= total estimated overhead costs for the period/150,000
$600,000= total estimated overhead costs for the period
On January 1, 2015, East Lansing, Inc, issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually. The market rate is 8 percent at the time of issuance. The issue price of the bonds is:____a. $1,852.810 b. $1888,970 c. $1.999.970 d. $2,162.290
Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
A newly issued bond pays its coupons once annually. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 8%. a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year.
Answer:
Holding Period return 19.54%
Explanation:
We purchase to get a yield of 8%
so we sovle for the present value of the bond (market value) which is the amount at which we adquire the bond:
PV of the coupon payment:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C ($1,000 x 5%) 50.000
time 20 years
rate 0.08
[tex]50 \times \frac{1-(1+0.08)^{-20} }{0.08} = PV\\[/tex]
PV $490.9074
Pv of maturity:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 20.00
rate 0.08
[tex]\frac{1000}{(1 + 0.08)^{20} } = PV[/tex]
PV 214.55
PV c $490.9074
PV m $214.5482
Total $705.4556
Then, we solve for the price that 7% YTM after a year:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 50.000
time 19
rate 0.07
[tex]50 \times \frac{1-(1+0.07)^{-19} }{0.07} = PV\\[/tex]
PV $516.7798
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 19.00
rate 0.07
[tex]\frac{1000}{(1 + 0.07)^{19} } = PV[/tex]
PV 276.51
PV c $516.7798
PV m $276.5083
Total $793.2881
Now we compare to get hte capital gain:
year-end less beginning value
$793.29 - $705.46 = $87.83
The coupon is also a return:
$1,000 x 5% = $50
Total return $137.83
Investment $705.46
Holding-period return
137.83/705.46 = 0,195376 = 19.54%
The business pays $2,000 in cash to the landlord for office space rent. a) Expenses reduce by $2,000 b) Equity remains unchanged c) Equity reduces by $2,000 d) Assets increase by $2,000 e) Liabilities reduce by $2,000
Answer: c) Equity reduces by $2,000
Explanation:
Expenses have the effect of reducing the income that the company would have made. That income is classified under equity as retained earnings so when expenses like office rent reduce the income, they are reducing the company's equity as well.
This is why expenses are debited when they increase because they reduce the equity accounts which are credited when they increase.
Use future value and present value calculations to determine the following: (a) The future value of a $660 savings deposit after eight years at an annual interest rate of 3 percent. Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) (b) The future value of saving $1,660 a year for five years at an annual interest rate of 6 percent. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) (c) The present value of a $2,310 savings account that will earn 3 percent interest for four years. Use Exhibit 1-C. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
Answer:
a. $836.07
b. $9,357.57
c. $8586.50
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$660(1.03)^8 = $836.07
b. The formula for calculating future value of an annuity = A (B / r)
B = [(1 + r)^n] - 1
(1.06)^5 - 1 = 0.338226
( 0.338226 / 0.06) x $1,660 = $9,357.57
c. Present value can be found using a financial calculator
Cash flow each year from year 1 to 4 = $2310
i = 3%
present value = $8586.50
To find the NV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Andrew founded and operated a wedding planning agency, which specialized in celebrity weddings. When he died, his business was dissolved because there was no plan for control after his death.
Answer:
Business Scenario: Sole proprietorship
Explanation:
The sole proprietor is the sole proprietor of the business. He earns losses only from trade and only profits from trade. There is no difference between business and owner. It is very easy to create and cancel such a business because the government is not involved in it.Using the accounting equation to analyze transactionsElaine’s Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine’s Inflatables is organized as a corporation. During the past month, Elaine’s Inflatables had the following transactions:Received contributions of $10,000 in exchange for common stock.Purchased equipment for $5,000 on account.Paid $400 for office supplies.Earned and received $2,500 cash for service revenue.Paid $400 for wages to employees.Cash dividends of $1,000 were paid to stockholders.Earned $1,000 for services provided. The customer has not yet paid.Paid $1,000 for rent.Received a bill for $250 for the monthly utilities. The bill has not yet been paid.Indicate the effects of the business transactions on the accounting equation for Elaine’s Inflatable. Transaction (a) is answered as a guide.Increase asset,(Cash); Increase Equity (Common Stock)
Answer:
Elaine's Inflatables
The effects of the business transactions on the accounting equation for Elaine’s Inflatable.
a. Increase asset,(Cash); Increase Equity (Common Stock) by $10,000
b. Increase asset, (Equipment); Increase Liabilities (Accounts Payable) $5,000
c. Increase asset, (Supplies); Decrease asset, (Cash) $400
d. Increase asset, (Cash); Increase Equity (Retained Earnings) $2,500
e. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $400
f. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $1,000
g. Increase asset, (Accounts Receivable); Increase Equity (Retained Earnings) $1,000
h. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $1,000
i. Increase Liabilities (Utilities Payable); Decrease Equity (Retained Earnings) $250
Explanation:
To explain the accounting equation in action, Elaine's Inflatable business transactions will always show the effects on the accounting equation. This equation states that Assets are always equal to Liabilities Plus Equity with every given transaction. This equation implies that two or more accounts are impacted by each transaction and the effect is always to keep the accounting equation in balance. For example, the payment of rent of $1,000 decreases the asset (Cash) and decreases the equity (Retained Earnings) side of the accounting equation by the same amount.
Crane Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $115 each in a foreign market which would not affect its present sales.
If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.
e. None of the above.
Answer: e. None of the above
Explanation:
Fixed costs are already incurred so will no longer be a factor as the same facilities are to be used. .
Variable costs on the other hand will always be there as the company aims to produce more and more goods.
The increase in net income will therefore be;
= Sales revenue - Variable costs
= ( 1,000 * 115) - ( 1,000 * 100)
= $15,000
Income will increase by $15,000
Jim agrees orally with West Bank to guarantee a loan that West Bank will make to Susan to purchase an existing restaurant upon Susan's agreement to pay Jim 10% of the gross revenues for two years. All parties orally agree. Jim's guaranty agreement with West Bank is unenforceable under the Statute of Frauds.A. Trueb. False
Answer: false
Explanation:
The statute of frauds requires some specific contracts types to be executed in writing. According to the statute, the contracts covered include agreements that involve goods worth over $500,
contracts for land sale, and also contracts that last for either one year or more.
Based on the scenario above, it is false as Jim's guaranty agreement with West Bank is enforceable under the Statute of Frauds
Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the compar- ison of these systems (System I vs. System IT) shows 2-16 total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions.
(a) What is the fixed cost for System I?
(b) What is the fixed cost for System II?
(c) What is the variable cost per map dispensed for System I?
(d) What is the variable cost per map dispensed for System 11?
(e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs?
Full question attached
Answer:
A. $1000
B. $5000
C. $0.9
D. $0.10
E. 5 maps
Explanation:
A. From the diagram in the question, we can see the equation of the cost, the constant to the right of the equation is the fixed cost
B. The same is applicable as in question A
C. The variable cost can be seen in the equation where we observe the cost per map- 0.9 per unit X
D. Same is applicable as in question C
E. The break-even point is 5 maps as seen in diagram in question. At this point both equations equal $5500
The account balances of Wilson Towing Service at June 30, 2016, follow:
Equipment $12,950
Office supplies 1,000
Notes payable 4,500
Rent expense 500
Cash 1,400
Dividends 5,500
Service revenue 12,500
Accounts receivable 8,000
Accounts payable 10,000
Retained earnings
June 1, 2016 5,900
Salaries expense 2,500
Common stock 2,000
Required:
1. Prepare the income statement for Wilson Towing Service for the month ending June 30, 2016.
2. What does the income statement report?
Answer:
$9,500
The income statement will report both Revenues which is Service revenue and Expenses which are Salaries expense and
Rent expense
Explanation:
Preparation for income statement for Wilson Towing Service
Income statement for Wilson Towing Service for the month ending June 30, 2016.
REVENUE
Service Revenue 12,500
Less EXPENSES:
Salaries expense (2,500)
Rent expense (500)
Net income $9,500
Therefore net inome for income statement for Wilson Towing Service for the month ending June 30, 2016 will be $9,500
Based on the above calculation the income statement will report both Revenues which is Service revenue and Expenses which are Salaries expense and Rent expense.
How do financial institutions help with risk-bearing?
Answer:
A, B and D
Explanation:
The financial institution help with respect to risk bearing in the following ways
1. The risk should be spread with the help of pooling the premium and the claim should be paid with respect to accident, fire, etc
This results in spreading the financial risk
2. Mutual funds and the pension funds should be spread among various stocks and bonds so that the risk could be spread rather limited to one company
3. The risk should be spread among various clientele
Therefore the option A, B and is correct and C is in correct as the investment companies do not deny in case when it would meet the risk and returns objectives
Select a local nonprofit and work with a team of your classmate to brainstorm ideas for a franchise business that cash flow to support. The mission of the social venture. What advice can you offer social entrepreneurs n developing alternative revenues to replace declining grants and donations
Answer:
fundraising
Explanation: