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3 years ago

Revenues and expenses are transferred to the ________ account before their final transfer into the retained earnings account.

1 answer:

6 0

D is the correct answer. Income summary is a sort of "catch-all" account that holds both revenues and expenses before recording them as retained earnings. These will then be rectified at the end of the manual accounting period. If there is a net profit or loss for the business, it will be reflected during the accounting period in the income summary.

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Wanda owns a lemonade stand. she produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. her costs per

kari74 [83]

The cost of making one cup of lemonade = 0.01 + 0.02 + 0.03 + 0.02 + 0.10 = 0.18
Wanda sells a cup of lemonade for 0.50, thus, she always make a gain of 0.32 on each cup of lemonade. That is, Profit = 0.50 - 0.18 = 0.32.
For 300 cups of lemonade, Wanda profit's will be 0.32 * 300 = 96
Therefore, Wanda's economic profit is $96.

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3 years ago

How can expectations about the future change consumer behavior?

Scrat [10]

The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.

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3 years ago

Read 2 more answers

2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua

Vadim26 [7]

The original data is :

Data for Hermann Corporation

Per unit Percent of sales

Selling price $ 75 100%

Variable expenses 51 68

Contribution margin $ 24 32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

Present Proposed

Sales 300000 375000

Less : Variable cost 204000 275000

Contribution margin 96000 100000

Less : Fixed expenses 75000 75000

Net income 21000 25000

The net operating income : Increases 4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.

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2 years ago

Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is

dexar [7]

Answer:

Repetitive layout

Explanation:

In simple words, Product-oriented layouts can be understood as the model that is grouped around items with equivalent high low commodities or families. Consumer demand is strong enough to warrant the high investment in specialized equipment in such a design. The commodity is standardized or entering a life cycle period that justifies investments in advanced equipment.

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2 years ago

J Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%.

viva [34]

Answer:

Explanation:

The time (T) = 6 months = 6/12 years = 0.5 years

Interest rate (r) = 6% = 0.06

The stock is priced [S(0)] = $36.50

The price the stock sells at 6 months ( $V_c$ ) = $3.20

European call (K) = $35

The price (P) is given by:

$P=V_c+K.e^{-rT}-S(0)+Dividends\\But, Dividends = 0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Therefore, P=V_c+K.e^{-rT}-S(0)+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Substituting:\\P=3.2+35*e^{-0.06*0.5}-36.5+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\P=3.2+33.9656-36.5+0.4926+0.4852\\P=1.64$

The price of a 6-month, $35.00 strike put option is $1.65

5 0

2 years ago

Revenues and expenses are transferred to the​ ________ account before their final transfer into the retained earnings account.

Revenues and expenses are transferred to the ________ account before their final transfer into the retained earnings account.