Answer:
The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.
Explanation:
The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.
As residual income is referred to income that calculated after deducting all debt and expenses occur on the project. ROI is a way to predict the profit of the project while residual income calculates the net income that the organisation generates from the project.
Answer:
$786,100
Explanation:
Funk Company
Accounts receivable $93,500 -$ 89,600
=$3,900
Sales totaled $790,000 - $3,900
=$786,100
Hence;
Cash (received from customers)$786,100
Add Accounts receivable $3,900
Sales revenue $790,000
Therefore the amount of cash received from customers during 2021 will be $786,100
Answer:
Current assets:
Amount = 2014 value - 2013 value
= $203,600 - $254,000
= -($50,400) (Negative)
percentage changes = 
= 
= (19.84)%
Plant assets:
Amount = 2014 value - 2013 value
= $1,397,000 - $831,700
= $565,300
percentage changes =
= 
= 67.96%
Total assets:
Amount = 2014 value - 2013 value
= $1,600,600 - $1,085,700
= $514,900
percentage changes =
= 
= 47.42%
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss
Answer:
Firm A will buy all of the firm B's pollution permits. Each one will cost between $100 and $200.
Explanation:
The firm B will gain from the trade of pollution permits. Firm A will need higher pollution permits since it emits 100 tons of chemicals into air and the cost for eliminating each ton is $200. This cost is higher than the cost to Firm B which is $100 only. Firm A will buy all the pollution permits from Firm B and there will advantage for the Firm B to gain from the trade.
