Answer:
D. $96,000
Explanation:
We will allocate the cost on maintenance by first stablishing a rate per maintenence hour:
As this is direct method we aren''t doing an allocation to other service department we directly allocate against production department A and B
total hours: 480 + 320 = 800
160,000 total cost /800 hours = 200 per hour
Department B hours: 480
allocate to department B: 480 x 200 = 96,000
Answer:
The correct option is d. Non cash activity
Explanation:
Operating Activity: The operating activity is that activity which records any changes ion the working capital or we can say increase or decrease in the currents assets and current liabilities.
Investing Activity: The investing activity records all those transactions which are related to the purchase and sale of fixed assets
Financing activity: It records those transactions which is for the long term i.e issue of shares, the redemption of debentures, etc.
All these three activities are term as cash activities because it includes cash transactions.
So, in the given question it is mentioned that the purchase of equipment by issuing a long-term note payable which is a non-cash activity because it does not have any cash transaction. It does not affect the cash balance.
Thus, under non-cash activity, we classify the purchase of equipment by issuing a long-term note payable
Hence, the correct option is d. Non-cash activity
Answer:
Cost of preferred stock will be 5.78 %
Explanation:
We have given par value = $100
Dividend rate = 5.5 %
So annual dividend 
We know that cost of preferred stock is given by 
Current price is given as $95.02
So cost of preferred stock will be = 
%
Answer:
a. $181,000
Explanation:
The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.
Calculation of Net Income will thus be as follows :
Revenue Received $260,000
Unearned Revenue($65,000-$35,000) $30,000
Total Revenue $290,000
Less Expenses :
Expenses ($85,000+$26,000-$28,000) $83,000
Depreciation $16,000
Net Income $181,000
A perfectly competitive firm earns a profit when price is above the average total cost.
A perfect competitive firm is a firm that operates in a perfectly competitive market. A perfectly competitive market is a market where the goods and services exchanged are homogenous. There is perfect information in this type of market.
In the long run, firms in a perfect competition earn only a normal profit. If in the short run, firms are earning economic profit, new firms would enter into the market. This would wipe out economic profit. In the short run, if an economic loss is been made, firms would leave the industry.
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