A company's competitive advantage will not endure for long when that competitive advantage can be

Brief Exercise 12-05 Nabb & Fry Co. reports net income of $31,000. Interest allowances are Nabb $7,000 and Fry $5,000, salar

il63 [147K]

Answer:

The calculation is shown below:

Explanation:

The distribution of income is shown below:

Particulars Nate Frank Total

Interest Allowance $7,000 $5,000 $12,000

Salary Allowance $15,000 $10,000 $25,000

Total $22,000 $15,000 $37,000

Remainder (Equally) ($3,000) ($3,000) ($6,000)

Net Income $19,000 $12,000 $31,000

The remainder amount is come from

= $37,000 - $31,000

= $6,000

We simply added the interest allowance and the salary allowance and then deducted the remaining income so that the net income could come

8 0

3 years ago

_____________ are sunk costs because the company will have to pay the cost no matter production or other variables in operations

Lina20 [59]

Answer:

E. Fixed Costs

Explanation:

Here are the options to this question :

A. Variable Costs

B. Labor Costs

C. Total Costs

D. Raw material Costs

E. Fixed Costs

Sunk costs are costs that have already been incurred and cannot be recovered. They should not be considered when making future economic decisions.

Fixed cost is cost that do not vary with production. e.g. rent

Most companies pay rent per year. if due to unforeseen contingencies, sales and profit of the company declines and the company decides to shut down production, the company has already paid for rent, this amount cannot be recovered even though the company would not be using the space for sometime. So, rent is an example of sunk cost

6 0

3 years ago

Which one of the following does not describe balance of trade? a. Balance of trade is the largest item in the current account.

sergeinik [125]

Answer:

c. Balance of trade is equal to the sum of current account balance and financial account balance.

Explanation:

The balance of trade is the difference in value between a country's imports and its exports over time. Balance of trade ( BOT) is expressed in monetary terms. If a country has more exports than imports, it has a positive trade balance or a trade surplus. Balance of trade is also known as international trade balance or trade balance.

Economists use the balance of trade in determining the country's current account. A trade deficit or trade surplus on its own does not mean that the economy is weak or strong in that period. The balance of trade is obtained by subtracting net imports from net exports.

7 0

3 years ago

The amount by which government expenditures exceed revenues during a particular year is the?

guajiro [1.7K]

Answer: Budget Deficit

Explanation:

8 0

1 year ago

On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $26 per share. It sold 4,000 of the

maxonik [38]

Answer:

Explanation:

The journal entries are shown below:

a. Treasury stock A/c Dr $156,000 (6,000 shares × $26)

To Cash A/c $156,000

(Being the purchase of treasury stock is recorded)

b. Cash A/c Dr $116,000 (4,000 shares × $29)

To Treasury Stock A/c $10,4000 (4,000 shares × $26)

To Paid in capital - Treasury stock $12,000

(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)

c. Cash A/c Dr $44,000 (2,000 shares × $22)

Paid in capital - Treasury stock $8,000

To Treasury Stock A/c $52,000 (2,000 shares × $26)

(Being treasury stock is sold at lower price)

5 0

2 years ago