Answer:
a. Beck Inc. = 5.00 and Bryant Inc. = 2.50
b. Beck Inc. = $100,000 and 100% : Bryant Inc. = $150,000 and 50 %
c. True.
Explanation:
Degree of Operating Leverage shows, the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.
Degree of Operating Leverage = Contribution ÷ EBIT
Thus,
Beck Inc = $500,000 ÷ $100,000
= 5.00
Bryant Inc. = $750,000 ÷ $300,000
= 2.50
<em>If Sales increased by 20% the effects on Incomes would be :</em>
Beck Inc = 20% × 5.00
= 100%
= $100,000 × 100%
= $100,000
Bryant Inc.= 20% × 2.50
= 50 %
= $300,000 × 50 %
= $150,000
Answer:
The amount of money that must be deposited to day to fund this gift is<u> $2,568,807.34</u>.
Explanation:
In order to determine this, we employ the formula for calculating the present value of a perpetuity since the fund is meant to provide $140,000 a year forever.
A perpetuity can be described as payments that is made or received periodically forever or indefinitely.
The formula for calculating the present value of a perpetuity is given as follows:
PV = M / i ............................. (1)
Where;
PV = the amount of money that must be deposited today = ?
M = yearly amount to receive forever = $140,000
i = expected rate of return = 5.45, or 0.0545
Substituting the values into equation (1), we have:
PV = $140,000 / 0.0545
PV = $2,568,807.34
Therefore, the amount of money that must be deposited to day to fund this gift is<u> $2,568,807.34</u>.
Answer:
Explanation:
Required 1
determine the effect of the error on retained earnings at january1,2016;
in 2016, SE discovered that the expenses for advertising is $42000, it is an error caused by net purchase of inventory in the year 2015. the cost of goods sold for advertising expenses is overrated by $42000.
Therefore, the understatement advertising expense at ending inventory is $30000 held on consignment caused in 2015 is detected that the goods sold to be overstated.
check the attachment for analysis of 2015 ending inventory error effects.
REQUIRED 2 ( CHECK THE ATTACHMENT BELOW)
REQUIRED 3;
Determine the steps taken in connection with the correction of the error;
In 2015 the result for the financial statement was incorrect with two errors by restated. The correct inventory amount cost of goods sold, advertising expenses , net income and retained earnings are reported in comparative purpose to their current annual report.
a previous period adjustment for retained earnings is reported with disclosure note for the nature of error.
finally, the correction is made at the year earning for net income and extra ordinary item purchased. Therefore , a calculated share for each retained earnings is get reported.
Among the choices the situations is the best use of endnotes in a business report is letter C which is <span> There are many references and readers are unlikely to check details of sources.
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