Answer: ($13,000)
Explanation:
Closing balance of Equity = Opening Balance + Retained earnings
Retained earnings = Net Income - dividends
Formula above shows that equity changes as a result of Retained earnings which is the net of Net Income and Dividends.
Change in equity will be = Net Income - Dividends
= (100,000 - 89,500) - 24,000
= -$13,500
<em>Equity reduces by $13,500</em>
The upside of changing its assembling frameworks is to enhanced item quality and lessened preparing time.
JIT and the lean maker has numerous bene±ts including enhanced item quality and diminished handling time, and decreased waste and stock, bring down work and generation costs, and expanded assembling adaptability.
Answer:
Explanation:
Corporate action in which one company buys the assets and obligations of another company and assumes control. - Acquisition
The joining of two or more business entities into a single entity. - Merger
Business entity owned, controlled and operated by a group of users for their own benefit. - Cooperative
Form of business in which one party gives another rights to sell its products or services and use its business format in a certain geographic area. - Franchise
Individual who has shared ownership in a partnership but takes no part in managing it and has limited liability. - Limited Partner
Entity taxed like a sole proprietorship or partnership but maintains benefits of incorporation like limited liability. - S Corporation
An unincorporated business with one owner. - Sole Proprietorship
Business entity with two or more owners who share management and profits or losses. - Partnership
Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
