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PIT_PIT [208]
3 years ago
11

ACC Corporation's income statement shows depreciation of $1,611, sales of $21,415, interest paid of $1,282, net income of $1,374

, and costs of goods sold of $16,408. Finance analysts would immediately identify one of these numbers as a so-called "noncash expense". Which one is it? What is its dollar amount?
A. $740
B. $1,282
C. $2,351
D. $1,611
E. $2,893
Business
1 answer:
goldenfox [79]3 years ago
5 0

Answer:

D. $1,611

Explanation:

Depreciation is an expense indicating a decline in the value of the capital assets due to tear and wear, obsolescence, usage, time span, etc. It's displayed on the income statement debit side. It is a non-cash item which has no impact on the cash balance.

So in the given case, the non cash expense is known as depreciation expense

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Which of the following is an example of a cost that varies in total as the number of units produced changes? a. property taxes o
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Answer:

b. direct materials cost

Explanation: The cost of production of a product is determined by the sum of different factors needed for the production, these factors include direct and indirect labor force cost, amortized costs of the machinery and supplies. the depreciation of the machinery on factory equipment depends on the lifetime of the machinery, not in the daily use of the same equipment. in that case, it does not vary according to the units produced.

The property taxes on factory buildings are applied to the total properties belonged by the company, it is not affected by the production levels.

The salary of a production supervisor is a constant cost that does not change per the production level, in this specific case, the supervisor is nor being paid per unit, so the payment will be the same every month.

In the case of direct materials cost, as the company is producing more products it is necessary to increase the supplies used for the specific product, as an example if you want to produce 20 dolls you will need 20 toy heads, but if you want to produce 50 dolls you will need 50 toy heads; in this case the cost of the materials varies according to the units that the company wants to produce

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3 years ago
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"1. When a T-shirt manufacturer states, ""We sell it only in black because that way we can buy plenty of black fabric and run ou
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Explanation:

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Which of the following statements are TRUE about credit scores?
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Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. Its div
Korolek [52]

Answer:

option 14.92%

Explanation:

Data provided in the question;

Expected annual dividend to be paid = $0.65

Expected growth rate = 9.50%

Walter’s stock currently trades = $12.00 per share

Now,

Expected rate of return = \frac{\textup{Expected dividend}}{\textup{Stock price}}\times100\% + Growth rate

or

Expected rate of return = \frac{\$0.65}{\$12.00}\times100\% + 9.50%

or

Expected rate of return = ( 0.054167 × 100% ) + 9.50%

or

Expected rate of return = 5.4167% + 9.50%

or

Expected rate of return = 14.9167 ≈ 14.92%

Hence, the correct answer is option 14.92%

4 0
3 years ago
2. A company made the following merchandise purchases and sales during the current month
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Answer: You need to subtract the following then add what you have left.

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