Answer:
The correct answer is $800
Explanation:
Giving the following information:
Fulbright Corp. uses the periodic inventory system.
Fulbright made the following purchases (listed in chronological order of acquisition):
· 40 units at $100
· 70 units at $80
· 170 units at $60
Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
Ending inventory= [(100 + 80 + 60)/3]*10
Ending inventory= 80*10= $800
Answer:
Price of the whiskey would remain unchanged and the existing firms would continue to earn zero economic profit
Explanation:
In a perfectly competitive market, the market comprises of large number of sellers selling homogeneous products. The equilibrium is arrived at by the interaction of forces of market demand and supply and thus no single seller controls the output or influences the price.
The firms represent price takers in such form of markets.
Another major feature of this form of market being free entry and exit of firms which means existing firms can exit and new firms can join as there are no restrictions.
In the long run, firms earn zero economic profits in case of perfect competition.
In the given case, a huge factory of one of the leading producers of alcohol has been destroyed. The market being in long run equilibrium with zero economic profits, it means the incident will not in any way affect pricing and quantity as this will encourage new firms to enter liquor production market selling at lower price which would restore the equilibrium to it's original.
Answer:
The amount realized by Casey in the exchange $ 4700
Explanation:
Fair market value of stock received = $4000
Add: cash in transaction that qualifies for deferral under section 351 = $400
Add: assumed mortagae = $600
Less: selling expense = $(300)
Amount realized by casey in exchange = 4000 + 400 + 600 - 300
= $ 4700
Answer:
The answer is D.
Explanation:
Unlevered capital structure is the one where there is no debt in the company, the company is completely financed by using equity. While levered capital structure involves the combination of both debt and equity in the company.
For a company, debt is an effective tool to raise funds for expansion without diluting or reducing ownership control by adding more shareholders.
Interest payment on debt is usually fixed.
Going for leverage does not increase the number of shares and Earnings Per Share(EPS) will be higher because earnings or income will be distributed to fewer shareholders unlike unlevered capital structure that tends to add to the number of shares thereby lowering EPS because earnings will be distributed to larger shareholders.
Answer:
The answer is true
Explanation:
The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. In the above transaction there was no cash received therefore there was no effect.
Accrual basis is a method of recording accounting transactions for revenue when earned and expenses when incurred. In the above transaction, a service was rendered which increases revenue despite the fact that nocash was received for the service.