An entrepreneur is a person who owes money to a bank or other financial institution

The before-tax income for Ivanhoe Co. for 2020 was $104,000 and $81,200 for 2021. However, the accountant noted that the followi

Brilliant_brown [7]

Answer:

Corrected Income for 2020 is $ 86540 and for 2021 is $160,610

Explanation:

Ivanhoe Co.

Correction of Income for 2020 2021

The before-tax income $104,000 $81,200

1) Sales (39,000) 39000

2) Inventory (9,400) 9,400

3) Entry wrongly made 14,400 14,400

4) Correct Entry 15,680 15,680

5) Add Depreciation 860 930

Corrected Income $ 86540 $ 160,610

1) Sales are included when the purchaser gets the title . They are the liability of the seller so they will be deducted from 2020 sales and added to 2021.

2) Ending inventory is deducted from COGS as it is understated it will be deducted from 2020 income and added to the 2021 income when it becomes the opening inventory.

3) Interest was received not given so the it will be treated as revenue not expense and added to the income statement.

4) Actual interest received was ($ 240,000- $16,000)* 7% = $ 15680. So an entry for actual interest will be made.

5) Additional amount of depreciation was charged to 2020 and 2021 income statement which will be added back. 10 % of $ 8600= $ 860 for 2020 and 10% of $ 9,300= $ 930 for 2021

5 0

3 years ago

The Hallmark Card Company is able to maintain good dealer relationships because it limits the number of stores in a geographic a

Marta_Voda [28]

The given question is about Business studies.

Hallmark uses Selective distribution.

Selective Distribution: This refers to a strategy where a firm opens a particular or less number of outlets first in a specific location. This might be limiting at first but is surely a good start as this not only reduces the chances of loss instead helps the brand/ firm to prosper and focus on its product quality. Initially, the retailers and distributors appointed by the firms are few but later on, this marketing strategy proves to be superior. It has the following benefits:

Better market coverage than distribution.

Concentrated efforts on specific outlets

More control and less cost than intensive distribution

Here are the related links:

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7 0

2 years ago

Things that the minister of sports could consider for sports to be a nation builder

svp [43]

I understand this question to mean "what can a minister of sports (presumably in the US?) do so that sports serves a nation builder"

Sports can be a nation builder when it unites the nation, as when for example all the people cheer for one team. So the minister can for example support national teams.

Sport can also increase people's standard of life, so the minister can support local sport facilities - healthy people mean a healthy nation.

Also, it can be a common goal, such as when a nation organizes some championships, so he or she can apply to host the Olympics for example.

4 0

3 years ago

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $

KATRIN_1 [288]

Answer:

INCORRECT.

In income summary account, all revenue accounts are closed by debiting them and crediting the income summary account. expense accounts are closed by crediting them and debiting income summary account. then on closing income summary account it shows debit balance if there is a net loss and it shows credit balance if there is a net income.

In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .

Therefore above statement is wrong. It implies a loss of $5300 not the net income of $5,300.

3 0

3 years ago

Jobs of financial

sukhopar [10]

Answer:

The answer is option B) without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.

Explanation:

The financial plan of an organization also known as financials is a record used to determine how a business will afford to achieve its strategic goals and objectives.

The Financial Plan collates each of the activities, resources, equipment and materials that are needed to achieve these objectives and specify time frames involved.

A financial plan contains a sales forecast, expense budget, cash flow statement, income projections, asset and liabilities, depreciation table, break even analysis and pre-operating costs. It shows whether the firm is making profit or running at a loss.

It is usually prepared in a spreadsheet.

This plan is what the bank and investors will need to evaluate your business.

Without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.

8 0

3 years ago