Answer:
Expense must be recognized in July
Explanation:
The reason is that the expense must be recognized in the month in which the supplies are used because the accrual concept says that the expenses must be realized when they are incurred. Incurred means that the consideration received has been used. For example if I pay the telecommunication network in June to give 4G internet and the services are delivered in the month July then the expenses will be realized in the month in which the services were used and that is July for internet facilities. So in this case the supplies are used in the month of July which is in-accordance with the accrual concept.
Answer:
I will accept the offer if the price per painting is $56,312.41 or higher.
Explanation:
We will calculate the present value of the other option which is, selling our painting as a freelancer.
C 315,000.00
time 5
rate 0.2
PV $942,042.8241
Now, we subtract the signing bonus of 100,000
942,042.83 - 100,000 = 842,042.83
And solve for the annual proceeds from the painting we need to equalize the opportunity cost:
PV 842,042.83
time 5
rate 0.2
C $ 281,562.03
Now, we divide by the 5 painting per year:
$281,562.03 per year / 5 painting per year = $56,312.41
Answer: Jessica's implicit costs are $46,000.
Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.
In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are:
Answer:
<u>debited</u>
Explanation:
Partnership refers to a mutual agreement wherein two or more individuals agree carry out a business and to share profits and losses in a specified ratio or as per the clauses of the partnership deed.
When partners retire, the balances standing to the credit of their capital accounts needs to be settled or paid off.
As per the given information, Wilma is paid $45000 in cash. The journal entry in this case would be:
Wilma's Capital A/C Dr. $45000
To Cash A/C $45000
For the remaining balance, Wilma shall be paid in cash as follows,
Wilma's Capital A/C Dr. $5000
To Cash A/c $5000
(Being settlement of a retiring partner's capital account being recorded)
Answer:
See explanation section
Explanation:
Req. A & B
If there is an increase in the net income over the year, the company is in profitability condition. As Omega industries are getting increased net income, it suggests their profitability.
EVM or enterprise value multiplier allows a company to compare the capital structure that the company uses. It is commonly used for valuing a business.
Req. C, D & E
In a financial plan, if the sales increase, it should be because of increasing working capital and fixed assets. We know, additional assets can generate more revenues.
A firm can collect approximately 8% of its annual sales at any given time. It can be found through the following way-
since the days' sales in receivables for 30 days in a year, the percentage of annual sales = (30 ÷ 365) × 100 = 8.22% or 8%
