Answer:
B. Real wages for university employees will rise.
Explanation:
Increase in income is @ 5%, and that the actual inflation is only 4% that is less than the increase in income. Accordingly, the company is paying more to the employees, and accordingly their wages have increased.
The amount of money available in real terms is more than the actual money, held by the employees earlier.
This is all because the actual increase in inflation rate is less than the increase in salary of employees.
Answer:
By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Explanation:
Percentage-of-completion method : Under this method,
First we have to calculate the percentage which is based on current period cost to total period cost.
After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.
In mathematically,
Estimated Cost percentage = current period cost ÷ total period cost
= $48 million ÷ $120 million
= 40%
Now,
Revenue recognized = Estimated cost percentage × Revenue
= 40% × $160 million
= $64 million
Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Answer:
The board most likely will not be held responsible.
Explanation:
The board of directors can legally defend themselves based on the Business Judgement Rule. This rule in contained in the <u>Corporations Act of 2001 - Section 180.</u> It states that any decision made in regards to the business operations should be:
- In good faith and not based on personal gain
- In the best interest of the corporation
- Based on information that supports the decision
For this particular case, the board based their decision on <em>previous market research</em> that received positive feedback.
Answer:
a. Total liabilities = $280,000
b. Total liabilities = $250,000
Total equity -= $250,000
Explanation:
As we know that
Total assets = Total liabilities + shareholder equity
So in the first case
The amount of the liabilities is
Total liabilities = Total assets - Total equity
= $700,000 - $420,000
= $280,000
And, in the second case, the total assets is $500,000
And, the liabilities and equity amounts are equal to each other
So in this case, the liabilities is $250,000 and the equity is $250,000
