Answer:
Alicia should toys to her line of business as payback is 2.97 years which is almost the same as her projection.
Explanation:
In judging whether or not Alicia should add toys to her line of business,the actual payback period on the toys business.
The payback as found in the attached is 2.97 years.
In computing the payback period, I picked before the cumulative cash turns positive,year 2 plus(cumulative cash flow in year 2/cash flows in year 3)
Answer:
The answer is net income
Explanation:
Net income is the difference the total revenue generated and the total cost(cost of sales, salaries, electricity etc.)
Materiality: A financial statement is said to material is when its misstatement or omission affects the opinion of its intended users.
Companies and auditors have agreed that anything under 5% of net income is considered not material, meaning any misstatement less than 5% of the net income is not considered to be important to alter the view of the users. In this kind of situation, auditors' opinion on the financial statement will be true and fair.
Answer:
of the expenditures were made in cash.
a. The Edison Company spent $12,000 during the year for experimental purposes in connection with the development of a new product.
b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $7,500.
c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest-bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000.
d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $28,000.
e. The Mayer Company, plaintiff, paid $12,000 in legal fees in November, in connection with a successful infringement suit on its patent.
f. The Johnson Company traded its old equipment for new equipment. The new