Answer:
The aggregate return for the last year is 11.61%
Explanation:
The return on any asset is the increase in price, in addition to any dividends or the cash flows, which is divided by the initial price. Since, the preferred stock is assumed to have a $100 par value of, the dividend amounts to $6.60, therefore, the return for the year would be:
Return (R) = (Market Price - Stock Price + Dividend) / Stock Price
R = ($102.42 - $97.68 + $6.60) / $97.68
R = .1161, or 11.61%
Answer:
Adjusting Entries
December 31
Dr. Insurance Expense $2,000
Cr. Prepaid Insurance $2,000
December 31
Dr. Supplies Expense $8,200
Cr. Supplies account $8,200
Explanation:
On December 31, six months have been accrued and all of the amounts of prepaid insurance became accrued. hence it will be recorded as an expense.
Now calculate the supplies expense using the following formula
Supplies expense = Beginning Supplies + Purchases during the year - Ending Supplies = $6,600 + $2,800 - $1,200 = $8,200
Answer: risk
Explanation: 100% satisfaction guarantee is a statement that if a customer of a product (or service) is not satisfied with the item purchased, then the producer will offer a full refund back to the customer. In this case REI allows this option for a period of up to 1 year after the sale was made.
REI utilises this option in an effort to reduce costs attributed to risk. For customers, this is a powerful tool as they are allowed to try the product, while knowing that if they don't like it then they can return it for a full refund. For REI, it increases customer trust as it allows customers to believe that the product is worth the sales price. It also reduces risk as REI is able to test the product out to actual customers and get a feel for if they like it, and what can be improved if needed.
Answer:
The Correct answer is A
Explanation:
Strategy of low cost is the kind of the pricing strategy, in which the business or organization, offers or provide the products or services at low price. This strategy helps in stimulating the demand as well as gain or acquire the higher market share.
So, the strategy which is competitive and also the low cost provider in the industry work well when:
1. Newcomers in the industry uses at the introductory stage, the low prices so that could attract the buyers.
2. The competition on the price between the rivals sellers is vigorous.
3. The buyer also incur the low costs while switching the purchases from seller to another seller.
4. The product which are commodity grounded prevail as well as has minimal differentiation.
Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
