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olchik [2.2K]
3 years ago
13

The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. (in millions) 2016 2

015 Allowance for doubtful accounts $7.2 $9.3 Total accounts and other receivables, net $486.6 $520.2 What are the company’s current gross accounts and other receivables at the end of 2016? Select one: A. $486.6 million B. $479.4 million C. $452 million D. $493.8 million E. None of the above
Business
1 answer:
Virty [35]3 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Given that,

In 2016,

Allowance for doubtful accounts = $7.2 million

Total accounts and other receivables, net = $486.6 million

In 2015,

Allowance for doubtful accounts = $9.3 million

Total accounts and other receivables, net = $520.2 million

Therefore,

Company’s current gross accounts and other receivables at the end of 2016:

=  net receivable(2016) + allowance for doubtful(2016)

= $486.6 + $7.2

= $493.8

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Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit. The cost of producing this dress was $1,000. First,
givi [52]

Answer:

It will affect the accounting equation in $7.000.

Explanation:

The Assets will increase in $8.000 because Address You now have the right to claim to a customer $8.000 and is recognized in the Receivables. At the same time, Address You has to diminish its inventories at $1.000, because it delivered the dress to the customer. Finally, on the other hand, the profits for selling the dress ($8.000 - $1.000) affect the equity, and now the Accounting equation is balanced.

3 0
3 years ago
describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.
Zolol [24]

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>
  • You have a stake in the yearly commerce or economic activities.
  • During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.
<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

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7 0
1 year ago
The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of
OverLord2011 [107]

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

3 0
3 years ago
At the beginning of the year, Bryers Incorporated reports inventory of $6,200. During the year, the company purchases additional
Nana76 [90]

Answer:

Cost of Goods Sold = $19200

Explanation:

The cost of goods sold or COGS  is the cost of inventory that the business has sold for the period. The cost of goods sold can be calculated as follows,

Cost of Goods sold = Opening Inventory + Purchases for the year - Closing Inventory

Cost of Goods Sold = 6200 + 21200 - 8200

Cost of Goods Sold = $19200

8 0
3 years ago
If productivity increases significantly and demand is not very elastic, what is likely to happen?
spayn [35]

Answer:

B. Fewer workers will be needed.

Explanation:

Elastic demand refers to a flexible demand. It is a demand that can increases or decreases due to several factors. If demand is not elastic, it implies it is constant. An increase or decrease in output or price will not affect the quantity demanded.

An increase in productivity means an increase in output per worker. It is the increase in the number of units produced, per hour, per worker. An increase in productivity results in more output in a given period than previously.

If the demand is constant and there is an increase in productivity, only a few workers will be required. The output from the few workers will be high to meet the constant demand.

4 0
3 years ago
Read 2 more answers
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