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NISA [10]
3 years ago
14

Question 9 The Sunland, Inc. sold 9,120 season tickets at $2,100 each. By December 31, 2017, 16 of the 40 home games had been pl

ayed. What amount should be reported as a current liability at December 31, 2017? Current liability $ 5472
Business
1 answer:
MissTica3 years ago
6 0

Answer:

The current liability at December 31st 2017 is $ 11,491,200.00

Explanation:

The total amount realized from the sale of tickets is  $19,152,000.00  

($2100*9120) which is a revenue received in advance , a current liability,however only 16 out of 40 games have been played at 31st December 2017, which implies that Sunland Inc is now entitled to recognize revenue for 16 games.

The revenue for 16 games is computed below:

$19,152,000.00  *16/40=$ 7,660,800.00  

The necessary entries for this is shown below:

Dr Deferred revenue         $7,660,800.00  

Cr Sales revenue                                           $7,660,800.00

This leaves a balance of $ 11,491,200.00  ($19,152,000.00  -$7,660,800.00) in the deferred revenue account, by implication the current liability at December 31st 2017 is $ 11,491,200.00

 

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The correct answer is E. Initial public offering.

Explanation:

An Initial Public Offering (IPO) is an equity offering where a <u>private company</u> or '<u>issuer</u>' decides to <em>go public for the first time</em>. This is a big step for companies to raise capital through public investors, get access to better and more credit and further grow a company. To go through with an IPO, a company must meet the requirements of the Securities and Exchange Comission (SEC).

The process is made with the help of one or more <u>investment banks</u> that act as <u>underwriters</u>. Underwriters take care of the offering from the beginning to the end of the IPO by preparing documentation, providing proposals on selling price, amount of shares & timeframe for the market offering, marketing campaigns and going through the issuing process.

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3 years ago
Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in value
STALIN [3.7K]

Answer:

C: 17.78-30 pounds

6 0
3 years ago
Which of the following statements regarding budgets is true? a. Budgets are detailed forward-looking financial reports based on
Shkiper50 [21]

Answer:

a. Budgets are detailed forward-looking financial reports based on expected income and expenses.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

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3 0
3 years ago
Sanchez Semiconductors produces 400 comma 000 high minus tech computer chips per month. Each chip uses a component that Sanchez
lilavasa [31]

Answer:

Effect on income= 1,120,000 - 440,000= 680,000 increase

Explanation:

Giving the following information:

Sanchez Semiconductors produces 400,000 tech computer chips per month.

The variable costs to make the component are $ 1.30 per​ unit, and the fixed costs are $ 1,200,000 per month. The company has been approached by a foreign producer who can supply the​ component, within acceptable quality​ standards, for $ 1.10 each. If the company chooses to​ outsource, fixed costs can be reduced by 50%.

Make in house:

Variable cost= 400,000*1.3= 520,000

Unavoidable Fixed costs= 600,000

Total= 1,120,000

Buy= 1.1*400,000= 440,000

6 0
3 years ago
Denny is the owner of a popular ice-cream parlor. He also has a retail distribution network in the form of ice-cream vans that g
AysviL [449]

This is an example of "Equilibrium in business"

<u>Explanation:</u>

Equilibrium is the state of balance between market supply and demand, and as a consequence, prices are stable. Over-supply of goods or services generally causes prices to fall, leading to higher demand. The offers and demand balance effect results in a stable state. Here as Denny have good retail distribution network which allow him to supply across city and maintain lower price due to good availability of ice creams. For Denny reaching to the customers was easy via vans, thus his ice-creams had lower price.

6 0
3 years ago
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