Answer:
Applewood can stop the shipment and have the goods returned (the right of stoppage of goods).
Explanation:
When the buyer becomes insolvent while the goods are in transit, and the goods have not been paid yet, then the seller has the right to stop the delivery and resume possession of the goods.
Applewood could also try to sue Marco for specific performance but considering their current position it might be useless and actually result in more money invested and larger losses.
Answer:
See below
Explanation:
1. Complete accrual basis income statement
Sales
($28,000 + $3,000)
$31,000
Less cost of goods sold
($13,000 + $2,000 - $3,000)
-$12,000
Operating expenses
($9,000 - $2,000)
-$7,000
Depreciation expenses
-$4,000
Income tax
($4,000 + $1,000)
-$5,000
Amortization expense
-$1,000
Gain on sale of equipment
$2,000
Net income
$4,000
2. Cash flow statement (Indirect)
Net income
$4,000
Adjustments;
Add depreciation
$4,000
Add write off intangibles
$1,000
Less gain on sale of equipment
-$2,000
Less increase in accounts receivables
-$3,000
Less increase in inventory
-$3,000
Add increase in accounts payable
$2,000
Less decrease in accrued payable
-$2,000
Add increase in deferred income tax payable
$1,000
Net cash from operations $2,000
Answer: (A) Monitoring the administrative ratio to make sure staff expenses do not become excessive
Explanation:
The structural control is one of the concept that helps in monitoring the main building block in an organizational structure and managing all the functions such as design of an organization, performance, goals and the requirement within an organizational structure.
According to the question, the structural control is one of the process of monitoring the main administrative ratio so that the staff expenses are not becoming more excessive and serving only on the basis of important purpose and requirement.
Therefore, Option (A) is correct answer.
Answer: C.Any percentage less than 50 percent
Explanation:
In relation to the law on meeting the criteria to be treated as an exchange under the "substantially disproportionate" test as stipulated by U.S. Code § 302.Distributions in redemption of stock, Sam must own the lesser of 2 options of Club Corporation stock;
1. Less than 50% of the stock after the redemption
2. Less than 80% of Sam's previous ownership percentage
= 80% * 70%
= 56%
The lesser option is that of owning less than 50% so Sam must own less than 50% of stock after the redemption to meet the requirement to be treated as an exchange under the "substantially disproportionate" test.
