Answer:
B. $9,957.
Explanation:
The computation is adjusted amount for Uncollectible account expense is shown below:
= The estimated total uncollectible accounts + debit balance of Allowance for uncollectible accounts
= $7,322 + $2,635
= $9,957
For computing the adjusted amount we added the estimated total uncollectible accounts and the debit balance of Allowance for uncollectible accounts
Answer:
.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment
Explanation:
ROE means return on equity
ROE = Net income / shareholders equity
A project should be undertaken if the ROE of the project is greater than the cost of equity
The unemployment charge is the critical indicator which could degree the price of unemployed humans inside the overall labor pressure of the economy.
The unemployment rate would bring about the quantity of people unemployed inside the economy. The unemployment would also have a change off with inflation and is known as philips curve. The unemployment could bring about the fraction of people unemployed inside the economy.
The natural fee of unemployment would be the unemployment level at the whole employment degree in the financial system. The natural fee of unemployment would result in the sum of frictional and the structural unemployment within the economic system.
The increase in the frictional unemployment would result in the increase inside the herbal rate of unemployment as humans might also shift to higher research leaving job or can be unemployed in the transition whilst moving from one process to any other. thus, growth inside the frictional unemployment might bring about the growth in the unemployment within the economic system thereby growing herbal price of unemployment.
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Answer:
The amount of consolidated net income that will be assigned to the controlling interest for 2018 is $ 48,000.
Explanation:
In order to calculate consolidated net income profit and loss on intra group transactions are eliminated or not taken into account. So in order to calculate profit cost incurred by group is taken as cost of good sold and sales that is made to third party will be taken as revenue. Detail calculations are given below.
Revenue $ 100,000
COGS ($ 40,000) (50,000 *80%)
Profit $ 60,000-A
Consolidated net income controlling interest = A * 80% = $ 48,000
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
