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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

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bezimeni [28]

Answer:

Cash flow to creditors in 2018 is −$85,000

Explanation:

2017 balance sheet of Kerber’s Tennis Shop, Inc is recorded as

Interest paid............................................................................$255,000

Less:

long-term debt in 2018.........................................................$2.21 million

Less: long-term debt brought forward from 2017..........$1.87 million

Total (taken as net new borrowing)...................................$340,000

Cash flow to creditors = 2018 Interest expense less net new borrowing

= $255,000 - $340,000

= −$85,000

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3 years ago

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Answer:

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2 years ago

Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the

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Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.

Explanation:

A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.

A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.

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3 years ago

Item 6Item 6 Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50

Kipish [7]

Answer:

$1.07

Explanation:

The marginal cost measures the change in total cost of adding on more worker divided by the change in product for this additional worker (marginal product of labor). When adding one more worker, costs will increase by $80 (wage rate), while product will increase by 75. Therefore, the marginal cost is:

$MC=\frac{80}{75}\\MC=\$1.07$