Answer: $196,800
Explanation:
The cash payments to suppliers for inventory purchases will be:
= Cost of goods sold - Decrease in inventory - Increase in accounts payable
Decrease in inventory = 23,500 - 17,800
= $5,700
Increase in accounts payable
= 13,500 - 6,000
= $7,500
Cash to suppliers for inventory = 210,000 - 5,700 - 7,500
= $196,800
Answer:
c. auditors and financial statement users.
Explanation:
This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. <em>This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.</em>
Answer: Advertise on radio and earn $14,000
Explanation: Dominant strategy may be explained as the tactics or option which works best for a particular firm and seems to give the firm an edge abive other competitors.
Since both are following their dominant strategy, even though advertising on TV seems more lucrative if only one of the advertise, by the time both of them place TV advert, profit falls to $8000. therefore the strategy who gives the highest return when both thread the same advertising path is the radio advert, which gives a return profit of $14,000. Therfore, Uan Pablo should advertise on radio and earn a profit of $14000
Answer:
Explanation:
1. The computation of the balance in retained earnings is shown below:
= Beginning retained earning balance + adjusted net income
where,
Beginning retained earning balance is $780,000
And, the adjusted net income is = Inventory × ( 1 - tax rate)
= $60,000 × (1 - 40%)
= $36,000
Now put these values to the above formula
So, the value would equal to
= $780,000 + $36,000
= $816,000
2. The journal entry is shown below:
Inventory A/c Dr $60,000
To Retained earning A/c $36,000
To Tax payable A/c $24,000
(Being inventory is adjusted and the remaining balance is credited to tax payable account)
Answer:
Option D $8333
Explanation:
The value of the irredeemable bond can calculated using the Dividend Valuation Model.
The formula for the computation is:
Value of the Bond = Interest paid / rate of return on a similar bond
Value of the Bond = $500 / 6% = $8333.33
Note that initially the bond was worth $5000 which can be calculated with the same formula:
Value of the Bond = $500 / 10% = $5000
The net increase is $3333
So the correct answer is option D.
