Answer:
A) It is a use of cash, and will be shown in the investing section as a subtraction.
B) Depreciation Expense
C) Chester’s long-term debt will rise by $10,000,000
D) Broad differentiation
E) Andrews ROE will increase.
Explanation:
A) As the company will do a cash dibursement will be considered cash use and because is investing on it to increase future cash flow
B) A period cost is a cost which cannot be capitalized into an asset. As cost which occur as the time passes over the years Which is the case for depreciation expense
C) bonds payable for 10,000,000 will be recorded
the leverage is a ratio to analize the firm it does not influence the accounting
D) The company differenciate his products from the rest of their competitors in a great variety of products rather than a single buyer segment.
E) ROE will increase as the leverage makes the debt weight increase while the equity weight (proportion of the company owned by the stockholders)
For the rest ofthe options the information provided is insufficient please do another question with the information
Answer:
Estimated manufacturing overhead rate= $18 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead for the year $ 37,080
Estimated direct labor hours for the year 2,060
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 37,080/2,060
Estimated manufacturing overhead rate= $18 per direct labor hour
Answer: 18,000
Explanation:
Liability policy:
= 2,000
Insurance expense 2018:
= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month
= 12 × 2,000
= 24,000
Prepaid insurance balance for liability policy on 31 Dec, 2018:
= Prepaid Insurance for liability policy - Insurance expense 2018
= 36,000 - 24,000
= 12,000
Crop damage policy:
= 500
Insurance expense 2018:
= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month
= 12 × 500
= 6,000
Prepaid insurance balance for crop damage policy on 31 Dec, 2018:
= Prepaid Insurance for crop damage policy - Insurance expense 2018
= 12,000 - 6,000
= 6,000
Therefore,
Total prepaid insurance balance on 31 Dec 2018:
= Prepaid insurance balance for liability policy on 31 Dec, 2018 + Prepaid insurance balance for crop damage policy on 31 Dec, 2018
= 12,000 + 6,000
= 18,000
Answer: $5,500
Explanation:
The Cost of Goods available for sale is the price of the inventory and purchases that the company intends to sell.
June 1 Inventory = $1,000
June 12 Purchase = $2,400
June 23 Purchase = $2,100
Cost of goods available for sale = 1,000 + 2,400 + 2,100
= $5,500
Answer:
Wholesalers buy products from manufacturers at a lower price than other businesses because they receive discounts for volume buying.
Explanation:
I have no explanation really to say. Thats just the answer.
