Answer:
<u>BALANCE SHEET</u>
<em>ASSETS </em>
Cash 1410
Accounts Receivable 950
Prepaid insurance 110
Stock investments 1290
Inventory 1107
Equipment 2560
Accumulated Depreciation Equipment -670
Land 3240
TOTAL ASSETS 9997
<em>LIABILITIES</em>
Accounts Payable 884
Income tax payable 185
Mortgage payable 3640
Notes payable 201
Salaries and wages payable 272
TOTAL LIABILITIES 5182
NET EQUITY
Retained earnings (beginning) 1600
Common stock 1320
Dividends -375
<em>Net Income 2270
</em>
TOTAL NET EQUITY 4815
TOTAL LIABILITIES+TOTAL NET EQUITY 9997
<u>INCOME STATEMENT</u>
Sales revenue 5240
Cost of goods sold -1110
Gross Profit 4130
Salaries and wages expense -650
Insurance expense -260
EBITDA 3220
Depreciation expense -285
EBIT 2935
Interest expense -450
EBT 2485
Income Tax expense -215
<em>NET INCOME 2270</em>
Explanation:
According to the accounting equation the total of the assets should be equal to the sum between the liabilities and net equity. One of the components of the net equity is the net income that can be visualized in the final line of the income statement.
Answer:
a. $8 million
Explanation:
In the given situation, the $8 million is the best price to finalize your decision as $20 million costs is that cost which is paid last year and these costs are called sunk cost which is not recovered in the future, that means it is already incurred in the past.
Moreover, the sunk cost is not a part of the future decision as this cost is irrelevant now
So, $8 million is a relevant cost to make a better decision
A corporation needs sustainable income in order to cover all of its expenses in the long run.
What is Sustainable income?
Sustainable income represents the after-tax gain or loss on the impact of operations on a discontinued segment of business for a period.
Therefore, in the case of a discontinued operation, there is no sustainable income arising in the future as the segment of business is already discontinued and income, if any, is going to come only for the period of the discontinued operation. Income or expense from discontinued operations is a line of item in the income statement of a company below income from continuing operations and before the net income.
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Answer:
He was a Democrat and he was also a major leader in the progressive health reform
Answer:
($66,000)
Explanation:
Financing activities: It measures those transactions which are related to the long term liabilities and stockholder equity. The issuance of shares is an inflow of cash whereas redemption, the retirement of bond and dividend paid is a cash outflow in which the cash balance is reduced.
Since in the given question, the bond is retired for $66,000 cash which represents the cash outflow for $66,000 only as it includes the transaction of cash
