Answer:
Jess receives one-half of the estate, and Kato and Lars each receive one-fourth
Explanation:
The question is complete but phrased incorrectly as the options are not separated.
Answer:
b.$6.00
Explanation:
The contribution margin is the difference between the sales and variable cost. The difference between the unit sales and unit variable cost thus gives the contribution margin per unit.
Total variable cost per unit includes both direct and indirect cost.
variable cost per unit = $1.50 + $1.20 + 0.90 + 0.40
= $4.00
contribution margin per unit
= $10.00 - $4.00
= $6.00
Answer:
The company’s return on common stockholders’ equity for the present year is 7.9%
Explanation:
The return on common stockholders’ equity of the company for the present year is computed as:
= Net Income - (Shares x 6% x Rate of shares)
where
Net Income is $171,000
Shares is 10,000
Rate is $100
Putting the values in the above:
=$171,000 - (10,000 x .06 x $100)
= $171,000 - $60,000
= $111,000
Return on common stockholders’ equity = [ $111,000 / Common stockholders’ equity on January 1 + Common stockholders’ equity on December 31 / 2 )]
= ([$111,000($1,200,000+$1,600,000 /2 )]
= $111,000 / ($28,00,000 / 2)
= $111,000 / $14,00,000
= 0.079 or 7.9%
Answer:
Precautionary demand for money
Explanation:
There are three reasons for holding money. They include;
1. Transaction Motive: This refers to the money held by individual or firms in order to finance their day to day transactions. This kind of money is used to fund daily expenditures of individuals and firms.
2. Precautionary Motive: The precautionary motive refers to the tendency of an individual or firms to hold cash in order to meet the unforeseen circumstances. This is Joneas motive of holding money again a sudden drop in income in the future. He isn't sure if his income will drop or increase but he still saves for unforseen circumstances.
3. Speculative Motive: This motive of holding money by individuals and firms is to ensure they have resources to take advantage of future business opportunities.
As the interest rate RISES, the opportuninty cost of holding money rises and people increase their speculative balances.
The complete question is:
Niles, an accountant, certifies several audit reports on Optimal Operational Processes, Inc., Nile's client, knowing that the company intends to use the reports to borrow money from Prime Business Lending Company to buy new equipment. Niles believes that the reports are true and does not intend to deceive Prime Business, but does not check the reports before certifying them. Can Niles be held liable to Prime Business?
Answer:
Yes can be held liable
Explanation:
An accountant that certifies audits of a company is expected.to do his due diligence. In this scenario Niles believed that the reports are true without checking them.
This is an act of negligence on Nile's part and he can be held liable for damages resulting from the oversight.
The certified audit report is not only being used by Prime business but other third parties like investors and other stakeholders. Any of these can hold Mike's liable for any misleading information in the audit reports