Answer:
The new income will be higher by $22,800.
Explanation:
The net income is the actual earnings of the business which is determined from the profit or loss statement by deducting all the expenses from the revenues earned.
The effect of the adjusting entries on the net income will be as follows:
1) Insurance expense will be of $8,000. It is charged for the period of three months only. This will decrease the net income.
2) Interest revenue will be of $1,200. It is charged for 6months. This will increase the net income.
3) The depreciation expense of $16,000. This will decrease the net income.
Therefore for the overall effect on the net income, if there will be no effect of the above adjustments then it will show net income by higher amount then the actual net income, by $22,800.
Answer:
False
Explanation:
Kevin should not rise the level of production from 5 to 6 as the impact of the price dominates this situation
Also the market is not depend on the Kevin fire engines because of the competitive market
Plus the supply and demand relation is inverse and not depend on the change in price level in a competitive market
If the price is decreased from $160,000 to $120,000 so the quantity of the production would not be impacted
In addition to this, the total revenue could be impacted when there is a reduction in the price that produced more sale due to this there is a slightly change in upward and downward
Also the change would never be in the similar production as compare to the change in price
Therefore the given statement is false
Answer:
Investing activities
Explanation:
Investing activities refer to the activities of purchasing and selling long-term assets or other investment instruments. Cash flow from investing activities is among the three primary sources of a business's cash flows as recorded in a cash flow statement.
Other activities that are considered investing activities include
- Acquisitions of other firms or businesses
- Incomes from the sale of other businesses
- Purchases or sale of marketable securities such as shares, bonds, etc
Answer:
Contribution margin= 250,000
Explanation:
Giving the following information:
Sales $590,000
Total fixed expenses $150,000
Cost of goods sold $390,000
Total variable expenses $340,000
<u>A CVP income statements provides the following structure:</u>
<u></u>
Sales= 590,000
Total variable costs= (340,000)
Contribution margin= 250,000
Answer: Yes, because it is a contract whose terms prevent possible performance within one year
Explanation:
The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.
Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.
