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a_sh-v [17]
3 years ago
5

Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and the "Clean as

a Whistle Co." to come in at night and clean the premises. Which situation is LEAST likely to result in liability for Peter?
a. Cara, with authority, buys office supplies from Office Stuff.

b. Ben sells a car at a$ 1 ,000 markdown, after Peter told him not discount more than$ 500.

c. Stacy forgets to put the oil plug back into Daria's car after an oil change, damaging the engine when the oil runs out.

d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.
Business
1 answer:
drek231 [11]3 years ago
8 0

Answer:

d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.

Explanation:

Liability is the degree to which a person is responsible for injury that happens to another party in a lawsuit. Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and "Clean as a Whistle Co." as cleaners.

Peter will be least liable if Emralda from "Clean as a Whistle Co." runs over Patty I'm the dealership's parking lot.

This is because Peter hired the company as a seperate entity from the cleaning company employees. The conduct of employees from the cleaning company is responsibility of "Clean as a Whistle Co."

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3 years ago
Condensed financial data of Windsor, Inc. follow. Windsor, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $56
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Answer:

                                      Windsor, Inc.

                             Statement of Cash Flows

                                  December 31, 2022

Cash flow from operating activities

Net income                                                                           $108,206

Adjustments to net income                                                   $19,005

  • Depreciation expense $32,550
  • Loss on disposal of assets $5,250
  • Increase in prepaid expenses ($1,680)
  • Increase in accounts payable $24,290
  • Increase in accounts receivable ($34,860)
  • Increase in inventory ($6,755)
  • Decrease in accrued expenses payable ($3,150)

<u>                                                                                                               </u>

Total cash flow from operating activities                           $123,851

Cash flow from investing activities

Increase in long term investments                                    ($20,300)

Purchase in new plant assets                                            ($70,000)

Proceeds from disposal of assets                                         $1,050

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Total cash flow from investing activities                          ($89,250)

Cash flow from financing activities

Issuance of common stocks                                                $31,500

Payment of bonds payable                                               ($25,200)

Dividends paid                                                                     ($18,221)

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Total cash flow from financing activities                            ($11,921)

Total increase in cash                                                        $22,680

Cash balance December 31, 2021                                     $33,880

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Cash balance December 31, 2022                                    $56,560

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Cash $56,560 $33,880 +22,680

Accounts receivable 61,460 26,600 +34,860

Inventory 78,750 71,995 +6,755

Prepaid expenses 19,880 18,200 +1,680

Long-term investments 96,600 76,300 +20,300

Plant assets 199,500 169,750 +29,750

Accumulated depreciation (35,000) (36,400) -1,400

Total $477,750 $360,325

Liabilities and Stockholders' Equity

Accounts payable $71,400 47,110 +24,290

Accrued expenses payable 11,550 14,700 -3,150

Bonds payable 77,000 102,200 -25,200

Common stock 154,000 122,500 +31,500

Retained earnings 163,800 73,815 +89,985

Total $477,750 $360,325

Depreciation expense 32,550

Interest expense 3,311

Loss on disposal of plant assets 5,250

Net income $108,206

cash dividend of $18,221

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