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3 years ago

Data for Hermann Corporation are shown below:

Business

1 answer:

timama [110]3 years ago

8 0

Answer:

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Explanation:

Given

Sales 2000 units for $ 90 = $ 180,000

Variable Expenses = $126,000

Contribution Margin = $ 54,000

Less Fixed Expenses = $ 30,000

Operating Income = $ 24,000

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Sales 2000 units for $ 99 = $ 198,000

Variable Expenses (63 +2= $65) = $130,000

Contribution Margin = $ 68,000

Less Fixed Expenses = $ 30,000

Operating income = $ 38,000

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timofeeve [1]

Answer: D. I, II, and III

Explanation:

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3 years ago

Which one of the following statements is not true about statements of cash flows prepared according to U.S. GAAP?a. The operatin

Nutka1998 [239]

Answer:

The correct answer is b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash

Explanation:

Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.

We are going to analyze the options

a. The operating section of the indirect method starts with the net income of the period TRUE

b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash

FALSE, depreciation is not a source of cash

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3 years ago

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Answer and Explanation:

The adjusting entries are shown below

1. Accrued wages expenses

Wages expense Dr XXXXX

To Wages payable XXXXX

(Being the accrued wages is recorded)

For recording this we debited the wages expense as it increased the expense and credited the wages payable as it also increased the liabilities

2. Accrued utilities expenses

Utilities expense Dr XXXXX

To Account payable XXXXX

(Being the accrued utilities expense is recorded)

For recording this we debited the utility expense as it increased the expense and credited the account payable as it also increased the liabilities

3. For adjusting the unearned service revenue

Unearned service revenue Dr XXXXX

To Service revenue XXXXX

(Being the unearned service revenue is recorded)

For recording this we debited the unearned service revenue as it decreased the liability and credited the service revenue as it increased the revenue

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3 years ago

Phoebe, a sales representative, is so excited during her sales presentation that she does not hear the customer's question corre

Westkost [7]

Answer:

<u>Selective Perception </u>

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3 years ago

Problems with (or leakages from) the money creation process would include an increase in the reserve requirement. unwillingness

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Answer:

The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.

Explanation:

Solution

<em>Given that:</em>

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2 years ago