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grigory [225]
3 years ago
13

Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2015 and 2014 contained errors as follows:

Business
1 answer:
drek231 [11]3 years ago
3 0

Answer:

The multiple choices are :

a. $0

b. $ 4,000 overstated

c. $ 4,000 understated

d. $10,000 understated

The correct option is A,$0

Explanation:

Working capital in the resources used in running the business on day to day basis.

It is more of an operational capital in the business such as the cash,inventory  and some other liquid resources.

The formula for working is current assets minus current liabilities.

The working capital would not be impacted since understatement or overstatement in inventory in one year reverses in the second year.

The overstatement of ending inventory of $6,000 in 2014 would lead to understatement of closing inventory in 2015,while the overstatement in 2015 would be reversed in 2016.

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The percentage of sales approach separates accounts on the pro forma income statement and balance sheet into those that change d
lukranit [14]

Answer:

Sales

Explanation:

Sales is defined as the activities which are related to the selling or the number of the services or goods that are sold in the given period of time or year.

The seller who finished or concluded the sales in relation to the acquisition or appropriation or in a direct interaction at the time of sale with the buyer.

Therefore, the percentage of the sales method, separates the accounts on the balance sheet and pro forma income statement into those which change directly with sales.

5 0
4 years ago
Judy's Boutique just paid an annual dividend of $2.77 on its common stock. The firm increases its dividend by 3.50 percent annua
Papessa [141]

Answer:

10.4%

Explanation:

The formula to calculate the cost of equity is:

Cost of equity= (DPS/MPS)+r

DPS= Dividend per share

MPS= Market price per share

r= Growth rate of Dividends

Cost of equity= (2.77/40.12)+0.0350

Cost of equity=0.069+0.0350

Cost of equity=0.104→ 10.4%

The company's cost of equity if the current stock price is $40.12 per share is 10.4%.

5 0
3 years ago
2. What is dy/dx if y=6x'/12+0.4x<br>​
Sveta_85 [38]
I’m sorry I don’t know the answe
3 0
3 years ago
4. Why do people sometimes use credit to pay for items instead of just using cash?
olganol [36]
Most people wanted to build there credit up that’s why they use credit cards
7 0
3 years ago
Dean, the president of Billing &amp; Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every
Aliun [14]

Answer:

See the explanation below.

Explanation:

The court likely to rule in favor of Ewing.

The reason is that the enough consideration that gives backing to a promise in this case is generally the waiver of a legal right to eat to obesity as requested by the other party.

The evidence that Ewing has lost 154 pounds in weight over the stipulated period is a consideration that sufficient enough under the law. The payment of $10 pound that Ewing has lost is a promise. The fact that Ewing also benefit from the weight loss does not matter.

4 0
3 years ago
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