Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
Answer:
C) the Defendant
Explanation:
From the question, We are informed about how Jack enters into a contract with Jill’s Farm to provide water for Jill’s irrigation needs, and how Jack fails to deliver. Jill initiates a suit against Jack, asking the court to order Jack to perform. In this case Jill is a Defendant. In a lawsuit, there will always be a defendant and a plantiff, the defendant is the party that is sued, while the plantiff is the party that raise the lawsuit. However, couter-complaint is allowed to be filed by the defendant against the plantiff if he/she want. Therefore Jill is the defendant here while Jack is plantiff.
Answer:
The answer is:
b. $112,550
Explanation:
Please find the below for detailed explanations and calculations:
- Beginning Inventory as given at: $94,000;
- Inventory purchased during the year = Net purchase during the year -Discount made on net purchase + Freight-in charges = (400,000 -5,000) - [ (400,000 -5,000) x 1%) + 7,500 = $398,550; ( as $5,000 purchase is returned on the initial purchase of $400,000 and 1% discount is only made on the net purchase of $395,000 ( $400,000 - $5,000) ).
- Cost of good sold during the year as given at: $380,000;
=> <u>Ending inventory = Beginning inventory + Inventory purchased during the year - Cost of good sold during the year = 94,000 + 398,550 - 380,000 = $112,550.</u>
Answer:
Multiple Employer Welfare Association
Explanation:
A multiple employer welfare association (MEWA) is formed by at least 10 employers who want to lower the tax implications of providing life insurance benefits to their employees.
The whole group combines their contributions into a self-contributing health insurance plan that benefits their employees.
MEWAs are usually formed by small companies, since large corporations with tens of thousands of employees can do the same but on their own without needing other companies.
