It shows that individuals in that market are price sensitive as the demand for old navy jeans.
Answer:
$45; $50
Explanation:
Given that,
Quantity sold (at price = $50 per bottle) = 10 bottles of champagne
Quantity sold (at price = $45 per bottle) = 11 bottles of champagne
Therefore,
Quantity effect (keeping the price unchanged):
= (11 - 10) × $45
= $45
Price effect (keeping the quantity unchanged):
= ($45 - $50) × 10
= - $50
Hence, total revenue experiences an increase of $45 and a decrease of $50.
If you’ve filed for example a Federal income tax with the IRS. You’ll receive a Federal tax refund in return.
Answer: The following journal entries would apply:
<u>Purchase of franchise:</u>
Debit: Restaurant franchise (intangible asset) $85,000
Credit: Cash $85,000
<u>Amortization of franchise:</u>
Debit: Amortization charge $708
Credit: Accumulated amortization $708
Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.
Answer:
The debt to equity ratio is 1.32
Explanation:
The computation of the debt to equity ratio is shown below;
Debt to equity ratio is
= Debt ÷ equity
where, Debt is long term + current liabilities
And, the equity is contributed capital + retained earnings + other incomes
= ($100 + $150) ÷ ($120 + $50 + $20)
= $250 ÷ $190
= 1.32
Hence, the debt to equity ratio is 1.32