Answer:
Bad debts expenses for the year $ 44,400
Explanation:
Computation of Bad debts expenses for the year
Estimated uncollectible accounts based on ageing of receivable $ 49,400
Pre adjustment credit balance-allowance for uncollectible account <u>$ 5,000</u>
Bad debts expenses for the year $ 44,400
Answer:
either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.
Explanation:
Competitive advantage is the edge that a firm has over others in the same industry that results in higher profit margins for them.
One of the importance competitive advantages is price advantage.
This results from the firm being a low cost leader. Their cost of production is low enough for them to attract customers that are price sensitive leading to increased profits.
Also they can underprice their competitors or earn profit margins on the reduced cost of production per unit
The market-to-book ratio is 1.59%
<h3>How does market to book ratio work?</h3>
A financial valuation statistic called the Market to Book Ratio, commonly known as the Price to Book Ratio, is used to assess how a company's current market value compares to its book value. The current stock price of all outstanding shares represents the market value (i.e. the price that the market believes the company is worth).
<h3>How do you interpret a high market to book ratio?</h3>
A high book-to-market ratio could indicate that the stock of the company is being valued by the market below its book value. The price-to-book ratio, which is only the opposite of the book-to-market ratio formula, is well-known to investors.
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Answer:
Given list of cash activities is divided among operating activities, financing activities and investing activities in the explanation section.
Explanation:
- Paid for Advertising Operating Activity
- Paid for Office Equipment Investing Activity
- Issued Capital Stock Financing Activity
- Paid officers salaries Operating Activity
- Sold services Operating Activity
- Paid rent : Operating Activity
- Paid dividends: Financing Activity
- Issued a note payable: Financing Activity
- Paid rent: Operating Activity
- Sold excess office equipment: Investing Activity
Operating Activities include cash generated from operations, Interest Paid and Tax Paid.
Investing Activities include payment to acquire or proceeds from sale of property, plant and equipment, proceeds from government grants, interest and dividend received.
Financing Activities include proceeds from issue of shares, proceeds from long term borrowings, dividends paid etc.
Answer:
Investment on Gold Company 305,565
Goodwill 20,360
Carrying value 325,925
Explanation:
<em>Because our current control, we have to use the equity valuation</em>
<em>the net income increased our investment and the cash dividends decreased.</em>
beginning book value 275,400
+ 30% net income
30% of 125,600 = 37,680
-30% cash dividends
30% of 25,050 = (7,515)
ending I<u>nvestment on Gold Company 305,565</u>
<u />
<em>The goodwill will be amortized over 5 years using straight-line method</em>
<u>Goodwill</u>
300,850 - 275,400 = 25,450
life 5 years
25,450/5 = 5,090
amortization (5,090)
<u>Total 20,360</u>
