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ser-zykov [4K]
3 years ago
7

During the current year, Awning Company reported investment revenue of $4,000 from long-term investments reported using the equi

ty method. The long-term investments account had a beginning balance of $10,000 and an ending balance of $11,000. What was the amount of cash revenue received from these investments?
Business
1 answer:
ANTONII [103]3 years ago
7 0

Answer:

cash dividends: 3,000

Explanation:

We can solve for cash dividends based on how the equity method works:

Beginning investing

+ proportional net income

<u>-  cash dividends received  </u>

Ending investing

beginning + inomce - dividends = ending

  10,000   + 4,000  - cash dividends = 11,000

cash dividends= 14,000 - 11,000

cash dividends = 3,000

when received, the journal entry for the dividends was as follow:

cash       3,000 debit

    investing                   3,000 credit

to record cash received from investment

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Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or vari
Vedmedyk [2.9K]

Answer:

Variable costs are costs that vary with production. If production rises, the variable cost rises.

Fixed cost are costs that do not vary with production.

The time frame and contracts allows for distinction between fixed and variable cost in the short run.

in the short run, some costs of production cannot be changed for various reasons. Some of the reasons include, supply contract and Labour laws. Due to labour contracts, it might be difficult if not impossible to change wages paid to workers or fire workers. This makes wages fixed in the short run.

Some costs can be varied easily, for example if sales are low, shipping cost would reduce because the amount of orders are smaller.

, nd

Fixed costs include:

advertising expenditures

interest on company-issued bonds

payments for raw materials

Real estate tax

Executive salary

insurance premiums

wage payments

depreciation and obsolescence charges

rental payments on leased office machinery

Variable costs include :

fuel

shipping charges

sales taxes

All costs are variable in the long run because in the long run production decisions which appeared fixed can be changed. For example, Labour contract can end and the firm can decide to adjust or retain the contract in line with the current economic situation. The firm can decide to move to a cheaper location and reduce rental cost.

Explanation:

7 0
3 years ago
What are companies that have low customer contact and are capital intensive; yet provide a service, called? A. quasi-manufacturi
MrMuchimi

Answer:

A. quasi-manufacturing organizations.

Explanation:

Quasi manufacturing companies are organizations that have low customers contact and relatively high and intensive capital investments.

Hierarchical manufacturing organizations are those which has many chain of commands order. These companies follow typical organizational structure.

Example, Director, Senior managers, Assistant managers, supervisor, clerks etc.

4 0
3 years ago
Read 2 more answers
Spencer corp.'s attorney estimates that the company will ultimately have to pay between $250,000 and $500,000 relating to curren
Naddika [18.5K]

Spencer corp.'s attorney calculates that the company will ultimately control to pay between $250,000 and $500,000 relating to current litigation. spencer should accrue a contingent liability and loss of: $250,000.

<h3>What is contingent liability?</h3>

Liabilities that may be incurred by a company dependent on the result of an uncertain future event, such as the result of an ongoing lawsuit, are known as contingent liabilities. When they are both probable and reasonably estimable as a "contingency" or "worst case" financial consequence, these obligations are not recorded in a company's records and are not displayed on the balance sheet.

The kind and size of the contingent liabilities may be described in a footnote to the balance sheet. It is feasible to categories a loss's possibility as remote, improbable, or probable. It can be known, reasonably estimable, or not reasonably estimable whether a loss can be estimated. It might or might not happen.

Hence, Spencer corp.'s attorney calculates that the company will ultimately control to pay between $250,000 and $500,000 relating to current litigation. spencer should accrue a contingent liability and loss of: $250,000.

To learn more about contingent liability refer to:

brainly.com/question/17371330

#SPJ4

7 0
2 years ago
Which of the following is a sign of credit trouble?
Aleks04 [339]
The right answer for the question that is being asked and shown above is that: "c. Credit cards are canceled due to poor payment history." a sign of credit trouble is that <span>Credit cards are canceled due to poor payment history.</span>
8 0
3 years ago
The December 31, Year 1, balance sheet for Deen Company showed total stockholders' equity of $65,500. Total stockholders' equity
wlad13 [49]

Answer:

Consider the following explanation

Explanation:

Stockholder's Equity on December 31,Year 2 =Stockholder's Equity on December 31,Year 1 + Net income - Dividends + Shares Issued

Net Income = Stockholder's Equity on December 31,Year 2 - Stockholder's Equity on December 31,Year 1 + Dividends - Shares Issued

= ( $ 33,000 + $ 65,500) - $ 65,500 + $ 6000 - $ 13,500

= $ 25,500

Hence the correct answer is $ 25,500

3 0
3 years ago
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