Answer:
$10,000
Explanation:
A company's income is either shared out as dividends or kept in as retained earnings. Therefore, the total of retained earnings and dividend paid out is the net income. This is the amount that will reflect in the income statement. In other words, income is calculated first before dividends or retained earnings are declared.
For Martinville, income will be calculated first before dividends are paid. Net income will be
=revenue - expenses
=$17,000 -$7,000
=$10,000
Balance in the Income Summary account was $10,000
$0 is needed
<u>Explanation:</u>
As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity
. Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.
Therefore, there should be no equity capital that should be raised in order to fund the project.
The correct answer is $0 equity.
Answer:
235,000 total overhead
Explanation:
First we calculate the rate for activity
![\left[\begin{array}{cccc}&Cost&Pool&Rate\\Setups&60,000&24,000&2.5\\Inspections&120,000&24,000&5\\Assembly&280,000&28,000&10\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26Cost%26Pool%26Rate%5C%5CSetups%2660%2C000%2624%2C000%262.5%5C%5CInspections%26120%2C000%2624%2C000%265%5C%5CAssembly%26280%2C000%2628%2C000%2610%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Next, we apply this rate to desk lamp
![\left[\begin{array}{cccc}&Rate&Desk&Overhead\\Setups&2.5&16,000&40,000\\Inspections&5&15,000&75,000\\Assembly&10&12,000&120,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26Rate%26Desk%26Overhead%5C%5CSetups%262.5%2616%2C000%2640%2C000%5C%5CInspections%265%2615%2C000%2675%2C000%5C%5CAssembly%2610%2612%2C000%26120%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Total Overhead will be the sum of each activity overhead
40,000.00 + 75,000.00 + 120,000.00 = 235,000 total overhead
