Answer:
a. $103,400
Explanation:
As we know that
Cost of goods sold = Beginning inventory + purchases - ending inventory
And,
Gross profit = Sales revenue - cost of goods sold
Since in the question it is given that
The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively
Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income
And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.
So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse
So, the correct amount is
= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory
= $108,000 + $6,600 - $11,200
= $103,400
Answer:
Country B produces 25% of world GDP and option e is the correct answer.
Explanation:
We first need to calculate the total world GDP which is the sum of all the individual countries GDP.
The total world GDP = 32000 + 20000 + 10000 + 10000 + 8000
The total world GDP = $80000
Company B produces a GDP of $20000.
Out of the total world GDP, country B produces a GDP of = 20000 / 80000 = 0.25 or 25%
Thus, country B produced 25% of the total world GDP of $80000.
<span>The term option denotes contract that gives investors the choice to buy or sell stock and other financial assets.
</span>The option to sell shares of stock at a specified time in the future called is called call option. This call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond <span>at a specified price within a specific time period.</span>
Answer:
Its very simple, the required return would be 12% of the amount invested today. And this can be explained by the use of DVM (Dividend valuation Model), which is as under:
For ordinary shares r = (Dividend after one year / Share price now)
Dividend after one year = Required return * Share Price Now
Assuming no growth in the dividends, we can say that the required return would be 12% of the amount invested now which is the share price of the ordinary shares.
Answer:
b. a debit to Paid-In Capital from Sale of Treasury Stock.
Explanation:
Treasury stock is the stock of equity purchased by the company itself, from open market. Basically it has a debit balance. And it is shown as a negative value from common equity in the balance sheet.
Now when there is sale of such treasury stock, this treasury stock will be credited, also in next entry common stock will be credited as it will increase automatically therefore in no circumstances Paid in capital will be debited from sale of treasury Stock.
Final Answer
b. a debit to Paid-In Capital from Sale of Treasury Stock.