Explanation:
when a payment is made the entries recorded are debit prepaid expenses
Answer:
Barney's corporation retained earnings would be overstated by $13.65 million
Explanation:
First of all this cumulative amortization that is being putted on the patent represents the total amount of amortizations expense which is being charged against this intangible asset(patent in this case) over a period of its useful life.
Now because of the changes in marketing forecast , the Barney Corporation decided to reduce the useful life of the patent, earlier if the life would have not been reduced then the cumulative amortization expense on the patent would have been $21 million higher than it is now, which means Barney corporation now has to charge less expenses because now the projected life of patent has been reduced, that leads to the higher profits for the corporation because no the expenses are less. Now we will charge 35% of tax rate on this $21 million which is leading to overestimating the retained earnings of the corporation ,
barney's retained earnings = $21 million - $21 million x 35%
= $21 million - $21 x 35/100
= $21 million - $7.35
= $13.65 million
Answer:
$2,000
Explanation:
Revenue is the income generated from normal business activities. This includes allowances, discounts and deductions for sales returned.
Since Boogie and Twenties modify the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair, it means that revenue to be recognized from the date of the change will be recognized at a unit price of $10.
As such if Boogie delivers 200 pairs of shoes in September,
Revenue to be recognized in the Month of September
= 200 * $10
= $2,000
Answer:
$0.91
Explanation:
Calculation to determine What will the earnings per share be if the debt is issued and the economy is in a recession
Using this formula
Earnings per share =Economy in a recession/Shares of stock outstanding
Let plug in the formula
Earnings per share =$16,000/17,500
Earnings per share =$0.91
Therefore What will the earnings per share be if the debt is issued and the economy is in a recession is $0.91
Answer:
As a sales manager for GooGooLi Corporation, you have asked your sales analytics team to provide you with a predictive model of the factors that can help you predict the sales for the next quarter. In the report, your sales analytics experts have developed a new regression model that can explain the variation in quarterly sales better than the previous model. You decide to verify this by comparing the results of the new model (that explains sales variation better) with the older model. You expect to see the <u>R-square</u> for new model to be <u>higher</u> than the old model.
Explanation:
As the R square is the coefficient of the variation and it determines the percentage of explained variability of the data. It should be higher as the new model is the best fit to the data.
