Answer:
1. Dividends are deducted from the Statement of Retained Earnings as dividend expenses.
2. Dividends payable are reported in the Balance Sheet as current liabilities.
Explanation:
Dividends are distributions to the shareholders from earnings (income) after all expenses and taxes have been deducted from the revenue for the period. Dividends payable are unpaid dividends, which are reported as current liabilities until they are paid for in the next accounting period.
Within the context of the Ricardian model of trade, suppose that the introduction of a vaccine against a virus increases the productivity of workers in the developed world. What would you expect wages to do? fall mainly in the developing countries.
Answer:
Annual depreciation= $197,000
Explanation:
Giving the following information:
Purchasing price= $1,040,000
Residual value= $55,000
Useful life in years= 5
<u>Under the straight-line method, the annual depreciation is the same during the useful life of the machine. To calculate the annual depreciation, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,040,000 - 55,000)/5= $197,000
Answer:
Margin of safety= $60,000
Explanation:
Giving the following information:
A firm's forecasted sales are $250,000 and its break-even sales are $190,000.
The margin of safety is the excess of sales from the break-even point. To calculate the margin of safety, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 250,000 - 190,000= 60,000
Answer:
A) Related and supporting industries
Explanation:
Competitive advantage is the edge an entity has over others that results in higher profit margins.
According to Michael Porter there are 4 factors that gives national advantage in the international environment:
- firm strategy' structure and rivalry
- related supporting industries
- demand conditions
- factor conditions.
Related supporting industries refers to the presence of supporting industries that helps a company to thrive.
Forms depend on others for high productivity. When the presence of other supporting companies is adequate production will be maximised.
This is the case in the given instance where the country of Arcadia has clusters of associated businesses and suppliers which include individual dye and textile manufacturing firms, chemical plants, and leather manufacturing companies, most of which are well reputed and internationally competitive. This has made Arcadia a major force in the global economic market
