Answer:
The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.
Explanation:
Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.
<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>
Answer:
A discriminating monopoly is a single entity that charges different prices—typically, those that are not associated with the cost to provide the product or service—for its products or services for different consumers. Non-discriminating monopolies, on the other hand, do not engage in such a practice.
Answer:
The contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.
Explanation:
GDP is the abbreviation for gross domestic product which is the monetary value of all finished products (goods and services) made within a country during a specific period (usually a year). In the determination of a country's GDP, imports are subtracted while exports or sales are added.
Therefore considering that Amy received a shipment of Valentine's Day cards in December 2011 paying a total of $500 and sold all the cards for a total of $800 in February 2012, the contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.
Answer:
29,200 units
Explanation:
The computation of new break even point is given below:-
= Fixed Cost ÷ Contribution per unit
Fixed cost
= $625,000 + $105,000
= $730,000
Variable cost per unit = 50% of selling price
= $25
So, the break even point = $730,000 ÷ 25
= 29,200 units
Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.
Answer:
$85,400
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
Accounts Receivable $3100 increase - Operating cash outflow
Accounts Payable 1200 increase - Operating cash inflow
Buildings 4000 decrease - Investing
Depreciation Expense 1600 increase - Operating cash inflow
Bonds Payable 8100 increase - Financing cash inflow
Amount of cash provided by operating activities
= -$3100 + $1200 + $1600 + $85700
= $85,400
