All categories

3 years ago

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

Business

1 answer:

xxMikexx [17]3 years ago

4 0

Answer:

AXEL CORPORATION

Income Statement For the Year Ended December 31, 2021

Particulars Amount Amount

Sales Revenue $6,60,000

Less : Cost of Goods Sold $360,000

Gross Profit $300,000

Less: Operating Expenses

Selling Expenses $66,000

Administrative Expenses $86,000 $152,000

Operating Income $148,000

Non- Operating and others

Restructuring cost -$62,000

Interest Expenses -$23,000

Interest Revenue $39,000

Gain on sale of investment $86,000 $40,000

Net Income before Taxes $188,000

Less : Income Tax Expenses $47,000

Net income after Taxes $141,000

The Earning Per Shares remains $1.41

You might be interested in

Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o

vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0

3 years ago

ValentinkaMS [17]

Answer:

B.enables production to be ahead of demand.

Explanation:

One of the benefits of a wholesale warehouse in the chain of distribution is that it enables production to be ahead of demand.

A warehouse generally represents a large house where goods/products are kept prior to their distribution for sale.

The use of a warehouse offers several advantages to producers. These include:

adequate protection and preservation of products
regular flow of goods irrespective of their period of production
continuity in the production process in order to stay ahead of market demand
easy handling of products
etc.

Hence, the correct option is B.

4 0

3 years ago

In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a

Jlenok [28]

Answer:

$Q=nq=\frac{n}{n+1}\frac{a-c}{b}$

if n=1 (monopoly) we have $Q^M=\frac{1}{2}\frac{a-c}{b}$

if n goes to infinity (approaching competitive level), we get the competition quantity that would be $Q^c=\frac{a-c}{b}$

Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

$Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i$

from the FPC we have that

$a-b\sum_{i=1}^n q_i -m -b q_i=0$

$q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}$

since all firms are homogeneous this means that $q_i=q \forall i$

then $q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}$

the industry output is then

$Q=nq=\frac{n}{n+1}\frac{a-c}{b}$

if n=1 (monopoly) we have $Q^M=\frac{1}{2}\frac{a-c}{b}$

if n goes to infinity (approaching competitive level), we get the competition quantity that would be $Q^c=\frac{a-c}{b}$

7 0

3 years ago

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an

xenn [34]

Answer:

-3.41%

Explanation:

The computation of the annual rate of return is shown below;

We use the formula:

Future value = Present value × (1 + rate of interest)^number of years

$10,710,500 = $12,738,500 × (1 + rate of interest)^5

($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)

(1 + rate of interest) = 0.965913622

r = (0.965913622 - 1) × 100

= -3.41%

3 0

3 years ago

Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cos

barxatty [35]

Answer:

kaby lame

Explanation:

Now don't get us wrong – not all of these answers raise this excellent question

8 0

3 years ago