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djverab [1.8K]
3 years ago
8

In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb

er 31, 2017 balance sheet date, the market price for these materials dropped to $510,000.
The journal entry to record this situation at December 31, 2017 will result in a credit that should be reported
Business
1 answer:
MArishka [77]3 years ago
5 0

Answer:

d) as a current liability

Explanation:

Current Liabilities are those liabilities which are payable within one years time e.g trade payable, tax payable etc.

The credit against the purchase of inventory is classified as the trade payable and it is paid in a short time, so it will be reported on the balance sheet in current liability section.

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Starling Company purchased machinery at the beginning of Year 1 at a cost of $86,100. The machinery has an estimated life of fiv
Alja [10]

Answer:  $10,906

Explanation:

Given that,

Purchased machinery at the beginning of Year 1 = $86,100

machinery has an estimated life of five years,

Estimated residual value = $4,305

Accumulated depreciation = $49,077 at the end of Year 2

Year 3 Depreciation expense:

= \frac{Cost\ of\ machinery - Estimated\ residual\ value - Accumulated\ depreciation}{3}

= \frac{86,100 - 4,305 - 49,077}{3}

= $10,906

5 0
4 years ago
Determining Net Cash Flow from Operating Activities
ivolga24 [154]

Answer:

$67,150

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $12,750

Adjustment made:

Add : Depreciation expense $32,600

Add: Decrease in accounts receivable $21,500

Less: Increase in inventory -$18,300

Add: Increase in accounts payable $19,800

Less: Decrease in interest payable -$1,200

Total of Adjustments $54,400

Net Cash flow from Operating activities                        $67,150

5 0
3 years ago
A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majori
GaryK [48]

Answer:

This manufacturer should have to take the option of dropping Dillard's and including Macy's and Saks Fifth Avenue.

Explanation:

When manufacturers produce, they do so for the sake of gains and profits. A larger market provides bigger profits compared to a smaller one.

This question tells us that this manufacturer has a greater number of customers looking to get there products at Neiman Marcus, Macy's, and Saks Fifth Avenue. So since these places would provide him a bigger market, so he should partner with these retail markets (Neiman Marcus, Macy's, and Saks Fifth Avenue) and drop the market with just few customers (dillards).

7 0
3 years ago
The economy is growing far too quickly, as high aggregate demand is causing inflation. a. What fiscal policy should be pursued i
REY [17]

Answer:

A. Contractionary fiscal policy

B. Left

Explanation:

When the economy is growing too fast and the inflation is high, Contractionary fiscal policy should be pursued. Contractionary fiscal policy entails either government increasing tax or reducing its spending or both.

When taxed are increased, the household disposable income will be reduced, households will have lesser money to spend and also the business profit will be reduced and this will lead to reduced investments. This policy will relax the aggregate demand and ultimately the interest rate.

Since the aggregate demand will reduce after pursuing this policy, aggregate demand will shift to the left

5 0
3 years ago
Economists believe that people's wants are:
Cloud [144]

Economists believe that the wants of people are infinite.

<h3>What is want in economics?</h3>

These are the basic needs of people. In the field of economics it is believed that the wants of people are too numerous.

People have so many needs and the resources that are required to fulfill them are limited. This is the concept of scarcity.

Read more on want and scarcity here:

https://brainly.in/question/2337492

#SPJ12

3 0
2 years ago
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