Answer:
See explanation section
Explanation:
Journal entry to be recorded -
<em>Debit Warranty expense $8,000</em>
<em>Credit Estimated warranty liability $8,000</em>
Calculation:
Net sales = $400,000
warranty expenses = 2% of the net selling price.
Therefore, estimated warranty expense = $400,000 × 2% = $8,000
Since, the company does not pay the expenses, a liability arises. Since we are estimating the value from past experience, the liability will be estimated.
Answer:
1.) check attached picture
2a)Simple rate of return = 25.2%
2b) Yes
3a)2.92 years
3b) Yes
Explanation:
Kindly check attached picture
Answer:
66.62%
Explanation:
The debt ratio is the total liabilities divided by total assets. At the end of the year, total assets stood at $266,000, the increase in retained earnings which is the excess of revenue over expenses and dividends payment does not affect liabilities, as a result, liabilities stayed the same at $177,200.
Debt ratio=total liabilities/total assets
debt ratio=$177,200/$266,000
debt ratio=66.62%
<span>One composite commodity is produced.
</span><span>Output is regarded as net output after making allowance for the depreciation of capital.
</span><span>There are constant returns to scale. In other words, the production function is homogeneous of the first degree.
</span><span>The two factors of production, labor and capital, are paid according to their marginal physical productivities.
</span>
We have to calculate the benefit of every machine and to multiply it by its probability:
Machine A: $45,000 with a probability of 90%.
$45,000 * 0.9 = $40,500.
Machine B: $80,000 with a probability of 50%.
$80,000 * 0.5 = $40,000.
Machine C: $60,000 with a probability of 75%.
$60,000 * 0.75 = $45,000.
C > A > B.
Answer: We would select machine C.
