Answer:
A profit margin of 10% indicates that:
for every $1 in net sales, the company generates $0.10 in net income.
Explanation:
Company B's profit margin measures the degree to which the company makes extra money after deducting the expenses from the sales revenue. When expressed as a percentage, it indicates how many cents of profit has been generated for each dollar of sales.
Answer:
$500 credit
Explanation:
Given that
Number of authorized shares = 1,000 shares
Stated value per share = $10
Issued shares = 50 shares
Initial offering = $20 per share
So based on above information, the journal entry is
Cash $500 (50 shares × $10)
To Common stock $500
(Being the common stock is issued is recorded)
While recording this transaction we debited the cash account as it increased the asset side and credited the common stock as the equity is increased so that the proper posting could be done
The question is asking to states when is it not necessary to build a new market supply schedule and base on my research and further understanding, I would say that the answer would be when there's no demand or when there's a huge surplus. I hope you are satisfied with my answer and feel free to ask for more
Answer:
Sell Machine A and distribute cash to one of the shareholders.
Distribute Machine B to the other shareholder because there is no gain on the distribution and no deductible loss
Machine C can then be retained
Explanation:
If Machine A is distributed, it will result in a non-deductible loss of $ 7,000 ( 27,000- 20,000). Hence, to preserve the loss which will help to reduce tax base, the company should consider selling it and give the cash generated on it to one of the shareholders.
If Machine B is distributed, it will yield neither gain nor loss. Since it doesn't have any tax implication whether distributed or sold, the company should consider given it to the other shareholder.
As for Machine C, this should be retained, because Raven will have to pay tax on the assumed gain if it is distributed.
Beliefs because that's what they think is correct in other words believe what is correct.
