Answer:
$15,700
Explanation:
The computation of the net profit after taxes is shown below:
Sales revenue $125,000
Less: Cost of goods sold - -$42,300
Gross profit $82,700
Less: Operating expenses
One time part assistant $52,000
Administrative expenses $400
Utilities expenses $900
Total operating expenses -$53,300
Net Profit before tax $29,400
Less: income tax expense -$13,700
Net profit after tax $15,700
Answer:
It would decrease by $7,504.
Explanation:
The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.
Answer: B) Conservative Financial Policy
Explanation:
A Conservative Financial policy refers to a situation where an entity usually finances their permanent working capital with long term debt in part or in it's entirety.
It is stated that Bradford Maintainance uses long-term sources of funds to finance its assets which would point to a Conservative Financial Policy.
Answer: Legislative
Explanation:
A rule is a law backed statement made by a state agency. NHTSA is a state agency.
In light of The Cameron Gulbransen Kids Transportation Safety Act of 2007 (“K.T. Safety Act” or “the Act”) directs this agency to amend Federal Motor Vehicle Safety Standard (FMVSS) No. 111 [1] “to expand the required field of view to enable the driver of a motor vehicle to detect areas behind the motor vehicle to reduce death and injury resulting from backing incidents, particularly incidents involving small children and disabled persons", NHTSA decided to create a legislative rule to solve this problem.
Answer:
(a)Income statement:
Insurance expense - understated
net income - overstated
(b) balance sheet:
prepaid insurance - overstated
stockholders equity - overstated
Explanation:
