Answer:
Acceptance
Explanation:
Since in the situation it is given that Jamie renting a ranch for a years to Montana but she is ready for change of scenery. also she dont want to end the contract entirely so instead of ending the contract she asked the same to his brother. His brother agrees to the contract so here the given situation represent an example of an acceptance as he is ready and responsible to the terms of the contract
Answer:
Ending balance of assets is $ 857,100
Explanation:
Computation of total assets of Kirk Corporation
Opening Assets $ 851,000
Purchase of equipment $ 6,100
Purchase of supplies for cash $ 0
Sale of land at cost $ 0
Agreement for storage space <u>$ 0</u>
Ending balance Assets $ 857,100
Purchase of equipment on credit increases assets
Purchase of supplies for cash is neutral. Supplies ( considered as included in inventory) is paid in cash asset increases and decreases
Sale of land at cost is also neutral for asset purposes
Agreement to rent storage space is not an executed transaction
Answer:
$551,074
Explanation:
Sales revenue
Worst case
Budget sales = 2300 units
Estimated sales price = $750
Sales unit = (100%-4%*2300)
2208 units
Sales price = (100%-6%*750)= 705
Sales revenue =2208*705 =$1,656,000
b) Operating cash flow at worst case sales revenue
Variable cost - $260 *(100%-5%)
=$247
Total variable cost = $247* 2208= $545,376
Fixed cost = $589000*(100%-5%)
$559550
Operating cash flow = (1656000-545376-559550) =551,074
Answer:
5 units and $2,175
Explanation:
a. The computation of the economic order quantity is shown below:
= 
=
= 2,000 units
The total cost of ordering cost and carrying cost equals to
= Annual ordering cost + Annual carrying cost
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $8 + 10,000 ÷ 2,000 × $150 + 2,000 ÷ 2 × $0.75
= 80,000 + $750 + $750
= $81,500
Now in case of ordering 5,000 yields at discount price of $6.50 the total cost is
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $6.50 + 10,000 ÷ 5,000 × $150 + 5,000 ÷ 2 × $0.75
= $65,000 + 300 + $1,875
= $67,175
Therefore there will be 5 units should store at a time and cost of inventory is 300 + $1,875 = $2,175
Answer:
A. Expand-ability Relevance
Explanation:
Financial statements does not need expansion, therefore expand-ability relevance is not one of the qualities of financial statements.
A. Faithful representation- financial statements must be a faithful representation of the state of the entity. it should represent the correct position of the entity.
B. Comparability - The financial statements must be prepared in accordance with acceptable standard to ensure comparison within and without the entity.
C. Consistency and Verifiability - The numbers must be verifiable and methods choosing in treating certain items must be consistent over time.
