Answer:
A,. 13.33%.
Explanation:
Return on Investment (ROI) which gives the efficiency of a particular investment
We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000
We can calculate net income by substracing equal sales revenue from operating expenses
net income can be calculated as = ($5000000-$420000)
= $800000
ROI can be calculated as
net income/Capital investment
$800000/$6000000
=. 13.33%.
Answer:
The 10 possible costs in owning and running a tennis shoes factory are:
1) Rent - fixed , 2) electricity and other utility bills - fixed, 3) salaries of workers- fixed, 3) Shoe laces- variable, 4) cost of leather - variable, 5) cost of rubber -variable, 6) synthetics used in shoes - variables cost 7) depreciation on tools and machinery - fixed, 7) cost of fabric used in shoemaking - variable, 8) Advertising cost - fixed 9) Insurance - fixed. 10) cost of plastic foam - variable.
Explanation:
Fixed cost are the expenses that do not vary with the changes in the level of output within a period of time. It remains the same and fixed.
Whereas, variable costs are the expenses which keeps on changing with the change in level of output produced. They are flexible and keeps on changing depending upon the level of output.
<span>Transactions that are included in continuing operations are income from revenue,expenses, gains and losses.These are the components that will probably continue in future periods. It is important to segregate income from continuing operations from other transactions that affecting net income, because the information will help analysts predicts future cash flows.</span>
Answer:<u><em> Cost of goods sold</em></u> would be a debit entry to eliminate the intra-entity transfer of inventory.
Cost of goods sold is known as the direct costs ascribable to the production of the commodity sold in a organization. This considers the cost of the materials that has been substantially used in making the commodity including the labor costs.
<u><em>Therefore, the correct option is (b)</em></u>
Answer:
1. $565,000 and $166,600
Explanation:
In case of recording sale instead of lease the interest should be computed on Cash selling price instead of cost of the equipment
.
Interest income = ($4,965,000 - $800,000)*8%*6/12
= $166,600
As $800,000 is due in July 1
Profit = $4,965,000 - $4,400,000
= $565,000
Therefore, The amount of profit on the sale and the interest income that Koenig would record for the year ended December 31, 2018 is $166,600 and $565,000.
