Answer:
c. Utilities expense is a mixed cost and rent expense is a fixed cost.
Explanation:
Seacrest Enterprises
1000 units 5000 Units
Total Cost Total Cost /Unit Total Cost Total Cost/Unit
Direct materials $5,000 $5.00 $25,000 $5.00
Utilities expense $1,000 $1.0 0 $3,750 $0.75
Rent expense $4,000 $4.00 $4,000 $0.80
Direct Materials show variable Costs
Utilities expense show mixed costs
Rent Expense show fixed costs
The correct answer is
c. Utilities expense is a mixed cost and rent expense is a fixed cost.
Answer:
The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow
Explanation:
The computation of the cash flow from the operating activities for year 2 is shown below:
= Cash revenue in year 2 - interest on notes payable
= $950 - $1,800
= -$850
The negative amount shows an outflow of cash
.
The interest on the note payable is computed by
= Borrowed amount × interest rate
= $36,000 × 5%
= $1,800
Answer:
Mark should include in the letter to avoid litigation charges:
Specific facts about the consultant that can be verified.
Explanation:
False information, sentiment-hurting statements, or personal opinions about the consultant's character should never be found in formal letters that are meant to offer constructive criticisms. This means that only specific facts that are verifiable should be included. Formal letters are not avenues for character defamation. They are called "formal" because they must stick to specific and relevant official purposes.
Answer:
On the ex date, the contracts will show as:
10 ABC Jan 60 Calls
The customer must exercise call contracts to buy the stock prior to the Ex-Date
Explanation:
The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.
The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.
