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Fittoniya [83]
3 years ago
8

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

Business
1 answer:
Airida [17]3 years ago
3 0

Answer:

Sales revenue         $  710,000

Cost of goods sold $ 385,000

Gross Profit             $ 325,000

Selling expense              71,000

Administrative expense 91,000

Operating Income        163,000

Non-Operating Income

Interest revenue                   44,000

Gain on sale of investments 91,000

Interest expense                  (28,000)

Restructuring costs              (67,000)

Income before taxes           203,000

Income tax expense              (50,750)

Net Income                            152,250

Shares outstanding 100,000

Earnings per share $1.52

Explanation:

We need to determinate gross profit.

then, the operating income therefore the interest and restructuring cost are not considered.  Same goes for the gain on investment as aren't part of the business normal activities.

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Sara bought new lighting from a company and also hired the company to install new lighting for his business. The cost was going
lapo4ka [179]

Answer:

True

Explanation:

Contracts should be in writing because this guarantees that all the terms of the agreement are documented and the responsabilities of each party are stated. Also, contracts that involve the sale of goods with a value higher than $500 have to be in writing to be enforceable. So, according to this and considering that the total cost of the lighting is $5,000, it is true that the contract needs to be in writing.

4 0
3 years ago
On September 1, 2015, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on th
notsponge [240]

Answer:

B. $624,000

Explanation:

Calculation to determine The total amount of the current liability (including interest payable) for this loan that appears in Select Company's balance sheet at December 31, 2015

Current liability=$600,000 + ($600,000 *12% *4/12)

Current liability=$600,000 + $24,000

Current liability = $624,000

(September 1 2015 to December 31 2015=4 months)

Therefore The total amount of the current liability (including interest payable) for this loan that appears in Select Company's balance sheet at December 31, 2015 is $624,000

7 0
3 years ago
Shore Company reports the following information regarding its production cost:Units produced 38,000 units
Oksanka [162]

Answer:

Production cost per unit $80.59

Explanation:

The computation of the production cost per unit using absorption costing is shown below:

Direct labor per unit  $28

Direct material per unit $29

Variable overhead per unit $20 ($760,000 ÷ 38,000 units)

Fixed overhead per unit $3.59 ($136,420 ÷ 38,000 units)

Production cost per unit $80.59

We simply added all the cost per unit so that the production cost per unit could come

4 0
3 years ago
Which form of promotion is most suitable to promote complex and technical products such as automobiles, computers, and investmen
TEA [102]

The form of promotion that would work for technical products like automobiles is b. Informative promotion.

<h3>What is informative promotion?</h3>

This is where features of the good being advertised are elaborated on to ensure the viewer understands the product's functionality.

This is useful for technical products like computers and cars as there is a need for customers to know what makes them better.

Options for this question include:

a. Persuasive promotion

b. Informative promotion

c. Connective promotion

d. Reminder promotion

Find out more on types of promotion at brainly.com/question/11131986

#SPJ1

6 0
2 years ago
Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re
kiruha [24]

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

4 0
3 years ago
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