Answer:
Margin of safety ratio= 0.36= 36%
Explanation:
Giving the following information:
Liu Company has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000.
To calculate the margin of safety as a percentage, we need to use the following formula:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (48,500,000 - 31,040,000) / 48,500,000
Margin of safety ratio= 0.36= 36%
Options:
a. not entitled to more than 50 percent of the profits, because the parties historically had divided the profits fifty-fifty.
b. not entitled to more than 50 percent of the profits, because it was appropriate to apply partnership principles to an LLC when there was no operating agreement.
c. entitled to more than 50 percent of the profits, because Hurwitz would be unjustly enriched if he received 50 percent of the profits.
d. entitled to more than 50 percent of the profits, because it was the parties' intent to compensate Padden to a greater extent than Hurwitz
Answer:
B
Explanation:
Since neither the partnership nor the limited liability company had any partnership agreement that stated how Hurwitz and Padden would share the profits generated by the business, then the general rule of partnerships should apply, i.e. profits and losses must be divided equally among all the partners.
<span>This means that there were customers that were wanting the Disney channel, but did not get it because it was too expensive. Once the price went down these customers bought the service. The cable company test showed that they should keep their prices for the Disney channel low to generate more revenue. Even if they only had one customer to begin with they would only be making $10.75, and when they lowed their prices they would be making at least $15.90.</span>
Answer:
a) $700 debit to Depreciation Expense and a $700 credit to Accumulated Depreciation.
Explanation:
The adjusting journal entry is shown below:
On December 31
Depreciation expense $700
To Accumulated depreciation - Machine A/c $700
(Being the depreciation expense is recorded)
The computation is shown below:
= Estimated annual depreciation on the machine × number of months ÷ total number of months in a year
= $1,680 × 5 months ÷ 12 months
= $700
