Answer:
Wilson Towing Service
Income Statement
For the month ending June 30, 2016
Service revenue $12,500
Salaries expense ($2,500)
<u>Rent expense ($500)</u>
Operating profit $9,500
The income statement tells us how much profit/loss did a business make during a certain period of time. In this case, the operating profit was $9,500. In order to calculate net income we would need to subtract taxes but we are not given the tax rate or the taxes due.
Answer:
$80 billion
Explanation:
Okun law equation: GDP gap = Actual GDP * ((Unemployment rate - Natural rate)/100)*2)
GDP gap = $4,000 * ((6-5)/100*2)
GDP gap = $4,000 * 0.02
GDP gap = $80 billion
Therefore, $80 billion in an output level thus, would be what the economy would have sacrificed.
Answer:
No option is correct, but I believe that one option was not copied appropriately since A and C are the same (although both are wrong).
The correct answer is Salt is an inferior good for Brady since the income effect is negative.
Explanation:
Brady's demand for salt is perfectly inelastic, in other words, his demand curve for salt is vertical since no matter the price, he always purchases the same amount.
Salt is an inferior good for Brady since the income effect is negative. He will continue to buy salt regardless of its price.
Answer: $240,000
Explanation:
400,000÷20,000 = $20 per share (repurchase price)
160,000 ÷ 10,000 = $16 per share (sales price)
$400,000 - $160,000 = $240,000
The treasury stock account is created upon the repurchase of a company's own stock. The treasury stock account is debited for cost of repurchase and then credited.back when the stocks are resold. However, after repurchasing 20,000 stock for 400,000 and selling hlaf the repurchased stock (10,000) for $160,000, then the repurchase price is greater than the sales price. There will be no paid in capital, with the entire amount credited to treasury stock.
Answer:
The budgeted cost of purchases for raw material K for June is 1,212 pounds.
Explanation:
Computation of budgeted cost of purchase for raw material is shown below
= Required production + ending raw material inventory - opening raw material inventory
where,
Required production = June units × required units
= 300 × 4 pounds
= 1,200 pounds
Ending raw material inventory = 30 % of July units × required units
= 30% × 310 units × 4 pounds
= 372 pounds
Opening raw material inventory = 360 pounds
Now, put these values on the above equation
So, raw material purchase = 1,200 + 372 - 360 = 1,212 pound
Thus, the budgeted cost of purchases for raw material K for June is 1,212 pounds.
