Answer:
Temporary – revenues, expenses, dividends (or withdrawals) account. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period.
Explanation:
Answer:
<u>strategic</u>, <u>specific </u>and <u>flexible </u>
Explanation:
Strategic planning refers to planning for long term ambitions and goals of an organization. Such plans are of strategic importance and hence devised by the top management of an enterprise.
Specific plans refer to the future course of action, which is targeted at meeting a particular or specific goal or objective provided in a basic plan.
Flexible plans are the plans which allow for last minute changes in the strategy as per the business situation prevalent.
In the given case, the shop owner has reset overall goals i.e modified them and devise a specific plan to achieve those alongside making an allowance for future business fluctuations. This means, the plan should be strategic, specific and flexible.
Net present value (NPV) analysis is useful for determining
the current value of a stream of cash flows that extend out into the future. To
calculate net present value, we use the following formula:
NPV = X * [(1+r)^n - 1]/[r * (1+r)^n]
Where:
X = The amount received per period
n = The number of periods
r = The rate of return
npv = 875,000 * [(1+0.11)^7 - 1]/[0.11 * (1+0.11)^7]
= $ 7,954, 545
Answer:
the labor rate variance is $4,050 unfavorable
Explanation:
The computation of the labor rate variance is shown below:
= Actual hours × (standard rate - actual rate)
= 4,500 hours × ($19 per hour - $19.90 per hour)
= $4,050 unfavorable
Hence, the labor rate variance is $4,050 unfavorable
Answer:
<em>e) $320,000</em>
<em>Harley's income from Bike in 2012= Harley's investment in Bike * Net Income of Bike in 2012 + Dividend Income share of Harley received from Bike in 2012</em>
= 0.4 or 40% * $ 500,000 + 0.4 or 40% * $ 300,000
= $ 200,000 + $ 120,000 = <em>$ 320,000 </em>
Explanation:
For computing Harley's income from Bike in 2012, we should find the Harley's income from Bike from the two sources given in the problem i.e.
- <em>Net Income of Bike in 2012</em>
- <em>Dividend Paid by Bike in 2012</em>
The Net Income of Bike in 2012 = $ 500,000
Therefore, <em>Harley's Net Income share in Bike of 2012</em> = 0.4 or 40% * $ 500,000 (As Harley's investment in Bike is 0.4 or 40%).
= $ 200,000 - (Part A)
<em>Dividend income of Harley from Bike in 2012</em> = 0.4 or 40% * $ 300,000
= $ 120,000 - (Part B)
Adding Part A and Part B we get the answer of <em>$ 320,000.</em>