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
laila [671]
3 years ago
9

Green Caterpillar Garden Supplies Inc.

Business
1 answer:
brilliants [131]3 years ago
8 0

Answer:

This statement is TRUE, because:

C) Green Caterpillar’s retained earnings account increased between the end of Years 1 and 2.

Explanation:

The only way to determine if a company  was profitable is through the Net Profit in the Income Statement , if it was profitable it means that the result were allocated in Retained Earnings in the Balance Sheets because this account only growth with the results of the income statement, in this case the increase in the account was for $394.

Option A) is not true because the increase in total assets not only means a company´s positive results it could be because of the company increment the Accounts Receivable term and the Inventories which no means a positive result.

Option (B) in the case of cash increases it could be due to an increase in the total debt of the company as it's indicated in the Long Term Debt and because of new stock issues.

Both of this option are complementary to the option selected but this options alone doesn't indicate a profitabilty year.

You might be interested in
Accounting for manufacturing overhead. Creative Woodworking uses normal costing and allocates manufacturing overhead to jobs bas
VikaD [51]

Answer:

a) Budgeted manufacturing overhead rate =  budgeted overhead cost / budgeted labor hours

                                                                       = $ 4,140,000/ 180,000 hrs

                                                                       = $23 per hour.

b. JOURNAL ENTRY

Debit Work in process $4,347,000 Credit Manufacturing overhead $4,347,000

c. under or over applied = Actual overheads - applied

                                        = $4,337,000 - $4,347,000

              Over applied   = 10,000

yes the amount of over applied overheads is significant and material enough and it should be written off against cost of sales.

JOURNAL ENTRY

Debit Manufacturing overheads $10,000 , Credit Cost of sales $10,000

Explanation:

allocated manufacturing overheard = $23 * 189000 hrs = $4,347,000

4 0
3 years ago
Classify each of these transactions by type of cash flow activity (operating, investing, or financing). (Hint: Refer to Illustra
Luba_88 [7]

Answer:

1 - Financing activity

2- Operating activity

3- Financing activity

4- Investing activity

5- Investing activity

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the long term assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

So the categorization is shown below:

1. Issued $160,000 of bonds payable - cash flow from financing activity

2. Paid utilities expense - cash flow from operating activity

3. Issued 500 shares of preferred stock for $45,000 - cash flow from financing activity

4. Sold land and a building for $250,000 - cash flow from investing activity

5. Loaned $30,000 to Dead End Corporation, receiving Dead End’s 1-year, 12% note. - cash flow from investing activity

8 0
3 years ago
Please help answer economics questions for 100 points and brainliest
MAVERICK [17]

It is c I had this question also

8 0
2 years ago
Hampton Corporation has a beta of 1.3 and a marginal tax rate of 34%. The expected return on the market is 11% and the risk-free
vekshin1

Answer: 13.1%

Explanation:

Using the Capital Asset Pricing Model, the expected return is;

Expected Return = Risk Free rate + beta(expected return - risk free rate)

= 4% + 1.3( 11% - 4%)

= 4% + 9.1%

Expected Return = 13.1%

7 0
3 years ago
The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is
cestrela7 [59]

Answer:

$7,120

Explanation:

Given that,

Assets = $85,900

Liabilities = $13,500

Fair value of assets = $90,500

Fair value of its liabilities = $13,500

Amount paid to acquire all of its assets and liabilities = $84,120

Net assets:

= Fair value of assets - Fair value of its liabilities

= $90,500 - $13,500

= $77,000

Goodwill = Purchase consideration - Net assets

               = $84,120 - $77,000

               = $7,120

8 0
3 years ago
Other questions:
  • Rayya Co. purchases a machine for $159,600 on January 1, 2019. Straight-line depreciation is taken each year for four years assu
    14·1 answer
  • Your debit card is stolen, and you report it to your bank within two business days. How much money can you lose at most?
    11·2 answers
  • Suppose you borrow​ $1,000 at an interest rate of 12 percent. if the expected real interest rate is 5​ percent, then the rate of
    7·1 answer
  • Hankins Corporation has 8.1 million shares of common stock outstanding, 300,000 shares of 4.1 percent preferred stock outstandin
    14·1 answer
  • All else being equal, corporations prefer payments it makes to be classified as dividends rather than business expenses. True Fa
    13·1 answer
  • 4-21 (Algo) Reporting an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO4-2 Green Valley Company prepa
    11·1 answer
  • On June 30, year 8, Adonis Co. had outstanding 4%, $4,000,000 face value bonds, originally issued at 98, maturing on June 30, ye
    5·1 answer
  • What are the four steps you can take if you are at risk of becoming unemployed
    10·1 answer
  • The marketing manager of Easy Peasy Vegetables is working on the package for a new line of self-steaming microwaveable vegetable
    15·1 answer
  • Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today. She will immediately invest
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!