Answer:
The amount that the company should include in the current liability section of the balance sheet is $16,000
Explanation:
The short-term debt that the company is refinancing with long-term debt is non-current and deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.
Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000
Answer:
Explanation:
Please check attachment for the solution to the question.
Answer:
This practice is called JAMMING.The answer is D.
Explanation:
c) a big recording company buys a small independent label
It is typical in capitalistic economies for larger companies to buy out their competition, absorbing smaller companies. This kind of economic change can result in large changes in management for the smaller companies because the company that now owns them may hire or fire people based on what they feel best meets the needs of the newly acquired company.
Answer:
This project should be rejected because the AAR is 10.68 percent.
Explanation:
The accounting rate of return of the project needs to computed,compared with the required accounting rate of return in order to decide whether the project should accepted or rejected:
Profit margin=$86,800*6%=$5208
Average operating assets=($97,500+$0)/2=$48.750
Accounting rate of return=profit margin/average operating assets*100
Accounting rate of return=$5,208/$48,750*100=10.68%
The project accounting rate of return is lower than the required accounting rate of return,hence the project should be rejected.
