Answer:
<u>Current liabilities</u>
2,125,000 unarned revenue
336,000 tax payable
2,461,000 total current liability
Explanation:
taxable income x tax-rate = tax payable
840,000 x .4 = 336,000
subscription x value = unearned revenue
25,000 x 85 = 2,125,000 unearned revenue
This amount will decrease over time, as the customers receive their magazines.
Current liabilities
2,125,000 unarned revenue
336,000 tax payable
2,461,000 total current liability
Answer:
Accrual
Explanation:
The accounting principle of accrual means that you should register something when the fact that origins the right for the future payment/collecting occurs. It does not matter if the payment is done later, the fact that made you to pay was already done, so we apply accrual and say we already owe that money that we pay later.
In this example, Sally used the principle of accrual for the things in June that she later paid in July... but her expenses were origined in June, so they apply to June.
Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
Should you need any clarification just hit that comment button. Cheers.
Answer:
Under north Carolina's laws, the developer must refund the buyer's money within a 30 day period since the purchase date. North Carolina law also sets a deadline of 5 calendar days to cancel a timeshare contract, so this buyer barely made it on time. A buyer cannot waive his right to cancellation, even if the option is not included in the contract.
