Answer:
If closed the operating income will decrease by 50,000
Is a better scenario to continue with the residential sercives
Explanation:
<em><u>current scenario:</u></em>
contribution margin 450,000
Fixed Cost 480,000
net loss 30,000
<em><u>drop scenario:</u></em>
contribution margin = 0
fixed cost 450,000-370,000 = 80,000
net loss (80,000)
Answer:
Working capital = Current assets - Current liabilities
= $617,000 - $233,000
= $384,000
Explanation:
Working capital refers to current assets minus current liabilities. It is the capital available for day to day running of a business.
Answer:
The answer is letter D.
Explanation:
It is reasonable to expect that the cyclical unemployment rate has been unaffected.
Answer:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Explanation:
Calculation for estimated bad debts expense:
Explanation
Accounts receivable * Sales uncollectible
$445,000×0.025
=11,125
Hence:
11,125 +Allowance for Doubtful Accounts 1,350
=$12,475
Therefore the estimated bad debt will be:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Answer:
The correct answer is $720 in Year 1 and $240 in Year 2 Next.
Explanation:
According to the scenario, the given data are as follows:
Loan Amount =$16,000
Rate of interest = 6%
Time period for first year (Apr - Dec) = 9 months
Time period for second year ( Jan - Mar) = 3 months
So, we can calculate the amount of interest by using following formula:
For first year:
Amount of interest (1st year) = $16,000 × 6% × 9 ÷ 12 = $720
Amount of interest (2nd year) = $16,000 × 6% × 3 ÷ 12 = $240
