Answer:
False
Explanation:
It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:
- In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
- Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
Answer:
Debit Petty Cash $250; credit Cash $250
Explanation:
Based on the information given we were told that the Company establishes the amount of $250 as a petty cash fund on September 1 which means that The journal entry to record the establishment of the fund on September 1 is:
Debit Petty Cash $250
Credit Cash $250
Answer:
223,250 shares
Explanation:
proceeds from the exercise of options
= 26000 × 7 = 182,000
used to repurchase common stock at market price
182,000 ÷ 8 = 22,750
shares outstanding march 31, 2021
220,000
shares to be used in cal diluted EPS;
(26,000 - 22750) + 220,000 223,250
No. of Shares for computing Diluted Earning per share = 223,250 shares
Answer:
The company should process further:
Product B.
Explanation:
a) Data and Calculations:
Product A sales value at split-off point = $1,200
Cost of further processing of Product A = $600
Sales proceeds from Product A after further processing = $1,700
Product B sales value at split-off point = $3,000
Cost of further processing of Product B = $800
Sales proceeds from Product B after further processing = $4,000
b) There is no additional revenue gained from further processing of Product A. Instead, there is a loss of $100 ($1,800 - $1,700). This is unlike Product B where there is a gain of $200 ($4,000 - $3,800) from further processing. The company's decision should be to sell Product A at split-off while further processing Product B to realize incremental revenue.
