Answer: $104,000
Explanation:
Pretax income after the Adjustment = Pretax income before adjustments + Accrued sales revenue + Rent revenue earned - depreciation - accrued expenses - used insurance
= 120,000 + 29,000 + 7,000 - 31,000 - 12,000 - 9,000
= $104,000
The above were all period costs and so needed to be accounted for in the income.
Answer:
Option (A) is the correct answer to this question.
Explanation:
The cessation of the Sporty line would forfeit the profits produced by the Sporty line business, but the business (Beautiful Watches) will have to bear the $38,000 fixed expenses involved by Spotify Watches.
However, if production continued, the Sporty watches would have suffered a loss of $32,000. The company will bear fixed costs regardless of whether the company continues or discontinues the Sporty line market.
Accordingly, the gross operating profits should have been
= Total operating expenses - ( $ 38000 - $ 32000)
= $ 55000 - ( $ 38000 - $ 32000)
= $ 55000 - $ 6000
= $ 49000
There is also a fall of $6000 ($55000-$49000) in operating profits.
Other options are incorrect because they are not related to the given scenario.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Budgeted sales:
July= 21,500
August= 24,300
September= 28,700
October= 28,900
Grantham maintains an ending inventory equal to 10% of the current month’s sales. The ending inventory at June 30th was 3,100.
Production budget= sales for the month + desired inventory - beginning inventory
July:
Sales= 21,500
Ending inventory= (24,300*0.10)= 2,430
Beginning inventory= (3,100)
Total= 20,830
August:
Sales= 24,300
Ending inventory= (28,700*0.10)= 2,870
Beginning inventory= (2,430)
Total= 24,740
September:
Sales= 28,700
Ending inventory= (28,900*0.10)= 2,890
Beginning inventory= (2,870)
Total= 28,720
Answer:
Resilience.
Explanation:
In business, Geoff is demonstrating an ability termed resilience to recover from his low sales and not only adapt but offering post disaster strategies to prevent low sales. By demonstrating resilience, Geoff could bounce back from such a setback.
