Answer: $700,000
Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.
Retained earnings break even can be computed as follows :-
where,
retained earnings = net income (1- payout ratio)
= $525,000 (1 - 60%)
= $210,000
therefore,
=$700,000
Georgia booming industry in business sector particularly in Atlanta where it is housed as the International headquarters of facilities of 43 different countries. The industry that gave $23B per capita is the air transport industry. Atlanta dubbed as the busiest airport in the world.
Answer with its Explanation:
Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.
Accounting Equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Equipment 318,770 - Cash $318,770 = Zero Net Effect
Transaction 2: The increase in the equity will increase the current asset as well here, which means:
Fixed Assets + Current Asset = Equity + Liability
Current Assets + $139,050 = Issued common stock + $139,050
Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Current Asset + $70,94 = Current liabilities + $70,940
Answer:
Auto Shoppe
For Auto Shoppe to just break-even when it reads the codes from 200 car engines, it would charge $160 for the service of reading each car engine.
Explanation:
a) Data and Calculations:
Fixed cost of new engine computer code reader = $30,000
Service charge for reading the code from a single car engine = $50
Variable cost of reading per car engine = $10
Number of engines to read their codes = 200
To break-even, total costs must equal total revenue
Total costs = Fixed costs + Variable costs
= $30,000 + $10 * 200
= $32,000
Therefore, revenue should be equal to $32,000
The amount to charge in order to break-even is:
= $160 ($32,000/200)
b) This implies that to break-even at $50 selling price, the number of engines should be increased to 750 ($30,000/$40). This is because the contribution margin per unit = $40 ($50 - $10) and the fixed costs = $30,000.
