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quester [9]
3 years ago
12

If sales are $540,000, expenses are $440,000 and dividends are $50,000, what is the balance of income Summary prior to closing?

a. It will have a credit balance of $50,000. b. It will have a debit balance of $50,000. c. It will have a debit balance of $100,000. d. It will have a credit balance of $100,000.
Business
1 answer:
alexandr402 [8]3 years ago
7 0

Answer:

d. It will have a credit balance of $100,000.

Explanation:

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

So, the balance of income summary equals to

= Sales - expenses

= $540,000 - $440,000

= $100,000

The dividend should be deducted from the retained earning account. Hence, it will not be consider here

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Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,000,
aliya0001 [1]

Answer:

$(94,179)

Explanation:

Particulars        Year 0               Year 1            Year 2

Cash flows     ($1,500,000)  A$1,000,000   A$2,000,000

DCF 14%              1                    0.8772         0.7695

Present Values 1500,000      A$877,200      A$ 1,538,935

Conversion           1                    0.55                      0.60

P V in US$        (1,500,000)     482,460              923,361

Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)

8 0
3 years ago
Short Company purchased land by paying $15,000 cash on the purchase date and agreed to pay $15,000 for each of the next ten year
gogolik [260]

Answer:

Option D is the correct answer,$ 88,338.48  

Explanation:

The liability reported in the balance sheet can be computed by using the pv formula in excel which is stated thus:

=-pv(rate,nper,pmt,fv)

rate is the incremental borrowing rate of 11% per year

nper is the number of payments required to settle the obligation which is 10

pmt is the amount of yearly payment in order to fully settle the debt owed which is $15,000 per year

fv is the future worth of total payments which is not unknown,hence taken as zero

=-pv(11%,10,15000,0)=$ 88,338.48  

The correct answer is $ 88,338.48  

3 0
3 years ago
Aggregate supply is represented as a schedule or curve showing the relationship between the nation's
Diano4ka-milaya [45]

Aggregate supply is represented as a schedule or curve showing the relationship between the nation's price level (index) and the amount of real domestic output that firms in the economy produce.

The whole supply of products and services produced within an economy at a specific overall price over a specific time period is known as aggregate supply, also known as total output.

In other words, Aggregate supply is the total amount of items produced over a specified time period at a particular pricing point.

The relationship between price levels and the amount of output that businesses are prepared to produce is depicted by the aggregate supply curve.

Usually, the level of prices and total supply have a positive connection.

Demand growth or decline has the biggest impact on short-term changes in aggregate supply.

New technology or other developments in an industry have the biggest impact on long-term changes in aggregate supply.

Learn more about aggregate supply:

brainly.com/question/18273009

#SPJ1

4 0
1 year ago
What is total revenue , average revenue and marginal revenue ?Explain relationship among these​
Basile [38]

Answer:

Total revenue is the total amount of income that a firm obtains from selling goods or services. Average revenue is the average amount of income that a firm obtains for each unit of product , and marginal revenue is the extra amount of revenue that the firm obtains from the sale of one additional unit of product.

These three types of revenues have several relationships, for example, if total revenue increases more than total quantity, it means that marginal revenue is high. Another relationship is between marginal revenue and average revenue: when average revenue decreases, marginal revenue increases and viceversa.

7 0
3 years ago
Read 2 more answers
The socially responsible firm should strive to do all of the following EXCEPT a. Be a good corporate citizen b. Be ethical c. Ma
Goshia [24]

Answer: Obey the preferred laws.

Explanation:

A socially responsible company has to be aware of both profit making and adding value to the society they are found in. Therefore a socially responsible company does not need to be Selective to the laws they obey, but rather obey all laws that cover the scope of their business in the society.

3 0
3 years ago
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