Answer:
b. discharges the employer from the contract.
Explanation:
When an employee enters a contract with the employer there is an agreement that the employee will perform their duties effectively (in this case Emma as a billing manager) and the employer is obligated to pay her for services provided.
If Emma is failing to meet his obligations by being absent from work and even when present fails to adequately do her job, the employer is also discharged from his agreed duty on the contract.
Emma's actions discharges the employer from the contract.
Answer:
a.An increase in cash flows from operating activities
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets such as inventory, accounts receivables etc, (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. A decrease in assets (other than cash) is an inflow of cash while a decrease in liabilities is an outflow of cash.
Answer:
The current price of Hubbard's common stock is <u>$25.50</u>.
Explanation:
This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price = ?
D1 = Next dividend = D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53
r = required return = 8%, or 0.08
g = growth rate = 2%, or 0.02
Substituting the values into equation (1), we have:
P = $1.53 / (0.08 - 0.02) = $25.50
Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.
Answer:1. Make provision for warranty claims.
2. Disclosure of contingent liability
3. No cost should be recorded.
Explanation:
Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.
Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.
The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.
Answer:
It should listen to his mother.
Explanation:
This week cash flow handled the fixed cost of 10 to Raymond's brother.
His father is not considering that so it thinks the business flops.
Now that fixed cost are paid the following weeks his gains will increase entirely based on the sales volume so, it is better to continue the business for the next three weeks.
