Answer:
The correct answer is 1,900,000 dollars.
Explanation:
This question requires us to calculate the amount that the Sun angel will recognize as warrantly liability in it balance sheet for the year ended at 20x1.
The sales made during the year is 180 millions dollars. So the company will recognize the provision as follow (during the year)
(180M * 4%= 7.2M)
Debit Warrantly Expense $7.2M
Credit Liability $7.2M
Claim entertain during the year that has reduce the above recognize liabilty is
Debit Liabilty $5.3M
Credit Cash $5.3M
Liability to be reported = $7.2M - $5.3M = 1,900,000 dollars
Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.
Answer:
$7,200
Explanation:
The calculation of income that should be presented in the income statement is shown below:-
Dividend Received = Given percentage × Paid dividend
= 12% × $60,000
= $7,200
Therefore for computing the income that should be presented in the income statement we simply applied the above formula.
Therefore the above is the answer
Answer and Explanation:
The computation is shown below;
1. The willing amount to pay for the promise should be less than $20 that represents the time value of money
2. Now the present value is
= Received amount × discounting factor at 6% for 3 years
= $1,000 × 0.839
= $839
3. Now the interest rate is
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$1,000 = $863.84 × (1 + rate of interest)^3
rate of interest =5% approx
Answer:
<u>Pro forma income statement in contribution format</u>
Sales ( 2,200 units × $ 12.00) 26,400
Less Variable Costs :
Variable manufacturing cost ( 2,200 units × $ 7.20) (15,840)
Contribution 10,560
Less Expenses :
Fixed manufacturing cost (3,600)
Fixed selling and administrative cost (1,200)
Net Income 5,760
Explanation:
A flexed budget shows the Budgeted Costs and Revenues at Actual level of production rather than the Budgeted level of production.
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