Answer:
The Interest should be posted as an Income as Other Income in the Income Statement.
Explanation:
Interest income is the amount received by an entity from another usually a Bank for the use of its funds.
The recognition of Interest Income will be determined by the type of business of the entity. For income to be identified as under Business Operation income, it means it must be a huge source of revenue or part of its daily operations. A healthcare business is not in the business of loaning funds neither does it earns it major revenue from Bank deposits.
Answer:
a. Ending cash balance
You can find the ending cash balance in both the balance sheet and the statement of cash flows.
b. Adjustments to reconcile net income to net cash provided by operations
You can find this information in the statement of cash flows (under cash flows from operating activities).
c. Common stock
You can find this information in the balance sheet and the statement of stockholders' equity.
d. Total assets
You can find this information in the balance sheet
e. Net income
You can find this information in the income statement and the statement of cash flows (under cash flows from operating activities).
f. Revenue
You can find this information in the income statement.
g. Income tax payable
You can find this information in the balance sheet. Total income tax liability can be found int he income statement but it doesn't show us the unpaid amount. Also, the statement of cash flows shows us how this account changes from one year to the next.
Answer:
D. Shoes Cult has a competitive advantage over Aros.
Explanation:
Competitive advantage is defined as the advantage an entity has when they are able to produce a good at cost that is lower than the cost incurred by other parties in the same industry. This results in higher profit margins for businesses that have low production cost.
In this scenario Aros produces shoes for $20 while Shoes Cult produces the same shoes for $22. They both have the same price ceiling of $30.
Aros has competitive advantage over Shoes Cult because they produce at a lower cost and make more profit than Shoes Cult.
Assume they both sell at the maximum price. Profit for Aros= 30- 20=$10
Profit for Shoes Cult= 30-22= $8
22,938 is what he should pay for the annuity.
Given;
Pv = 5000
r = 4.5
n = 5
Formula of Annuity payment is; P = r(PV) / 1 - (1 + r)^-n
= 5000 * 0.045 / 1 - (1+0.045)^-5
= 22,938
Just follow the formula of the annuity payment and you can get the final answer you are looking for. The answer in this question is $22,938
The answer is: Licensing, Franchising