1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
15

Q 4.35: McGinnis Construction is a cash-basis company with a fiscal year-end of June 30. McGinnis’ employees earn a normal weekl

y wage of $12,500 during a five-day work week. June 30 falls on a Thursday for the current year. McGinnis also performed services of $40,900 during the last four days of June, but they are not paid in full until July 8. As a result of operations, there will be an ________ of McGinnis’ net income for the most recent fiscal year of
Business
1 answer:
hjlf3 years ago
4 0

Answer: Understatement, $30,900

Explanation:

There will be an UNDERSTATEMENT of McGinnis' net income for the most recent fiscal year of $30,900.

The Understatement arises because as of year end which is June 30th, McGinnis were not paid for their services that cost $40,900 and instead will only be paid on the 8th of the next month so it was not accounted for in the net income.

The reason the net income understatement is $30,900 and not $40,900 is because McGinnis will still have to account for the payment to it's employees. If in a five day week they earn $12,500, that would mean that they earn $2,500 a day (12,500/5). Seeing as June ended on a Thursday, that is a 4 day week which means $2,500*4= $10,000.

That $10,000 will reduce the net income by that amount.

The net effect is a $30,900 UNDERSTATEMENT.

You might be interested in
Hoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30. Hoffman Company returned $7,500
Stella [2.4K]

Answer: a. $56925 ; b. Account payable

Explanation:

a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?

Purchase invoice = $65000

Less: Return = ($7500)

Net Purchase Invoice = $57500

Less: Discount = $57500 × 1% = $575

Cash received = $56925

b. What account is debited by Hoffman Company to record the return?

The account that is debited by Hoffman Company to record the return is the account payable.

3 0
2 years ago
Phillippe invested $1,000 ten years ago and expected to have $1,800 today He has neither added nor withdrawn any money since his
jasenka [17]

Answer:

The interest paid on loan was at floating rate which means that the investor earning was lower because of lower interest rate than the interest rate he was expecting.

Explanation:

Because the bond was dependent on the floating rate in the market. The borrower kept paying the investor at the floating rate not at the fixed rate which would had increased its investment worth to $1800. As $1600 is less than $1800 so the interest rate agreed was floating rate interest.

4 0
3 years ago
Why does each generic business model require a different set of business-level strategies?
8090 [49]
N each of the different generic business models, customer feedback and marketing are very different because the products and consumers are different. This core difference requires synergistic strategies across all levels in order to properly support the corporate level with the information it needs.

Hope it helps!:)
4 0
2 years ago
True or false: if hubert's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreas
Amanda [17]

FALSE

because hubert being a competitive firm, if it decreases the price of engine, demand increases and thus production increases. Therefore revenue also increases.

7 0
2 years ago
Which of the following statements is NOT true about lockout/tagout?
dlinn [17]
<span>Which of the following statements is NOT true about lockout/tagout?
D. Lockout/Tagout is to be used only in extreme cases of potential electrical hazard 
D is not true because you would use a lockout/tagout when applying electricity in a way that could be dangerous. Due to being able to use it whenever it could be dangerous, it is used more than just in extreme cases. 
</span>
3 0
3 years ago
Other questions:
  • You are an economic advisor to the president. You observe a decrease in gross investment. Assume the economy was operating at th
    8·1 answer
  • What can you bring to our police department to make you a valuable asset to us?
    9·1 answer
  • The shortest type of distribution channel is called a _____.
    12·1 answer
  • Identify and explain two ways in which Manuel could communicate with individual workers about their pay and working conditions.​
    9·1 answer
  • People pay taxes for many reasons. Which of the following is NOT one of those reasons? A) civic duty B)moral reasons C)fear of I
    13·2 answers
  • Ziebart Corp.'s EBITDA last year was $350,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had
    12·1 answer
  • QRM, Inc.'s marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. Aft
    6·1 answer
  • Why did many banks fail after the stock market crashed?
    12·2 answers
  • Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single pro
    8·1 answer
  • This international business strategy is generally the most expensive commitment that a firm can make to an overseas market
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!