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Oliga [24]
4 years ago
10

The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:

Business
1 answer:
Alina [70]4 years ago
7 0

Answer:

1. WINFREY TOWING SERVICE

Statement of Comprehensive Income

                                           $

Service revenue               10,800

Rent expense                    (550)

Salaries expense              (1,900)

Dividends paid                  <u>(4,000)</u>

Net income                        <u> 4,350</u>

Statement of Retained Earnings

                                             $

Retained earnings b/f      3,900

Add: Net income               4,350

Retained earnings c/f       8,250

2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.

Explanation:

In this question, we need to obtain the net income of the company, which  is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.

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3 years ago
What are the benefits an organization can receive from the adoption of a risk management system?
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Preventative hazard administration packages furnish larger perception into insurance, indemnity and legal responsibility troubles and enable the organization to higher focus and structure its inquiry.

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Benefits of threat management consist of the following:

multiplied attention of threat throughout the organization;

greater confidence in organizational objectives and goals due to the fact threat is factored into strategy;

higher and more efficient compliance with regulatory and interior compliance mandates due to the fact compliance is coordinated;

<h3>What is the primary reason of risk management?</h3>

The purpose of hazard management is to discover conceivable issues before they occur, or, in the case of opportunities, to attempt to leverage them to cause them to occur. Risk-handling activities may additionally be invoked at some stage in the existence of the project.

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4 0
2 years ago
A 6.75 percent coupon bond with 26 years left to maturity can be called in six years. The call premium is one year of coupon pay
kiruha [24]

Answer:

The yield to call  is 5.07%

Explanation:

The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)

nper is the number of years to call which is 6 years

pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5

The pv is the current price at which the bond is offered to investors. i.e $1,135.25

fv is the price at the bond would be called in six years i.e par value+premium

par value is $1000

premium is $67.5

call price is $1067.5

=rate(6,67.5,-1135.25,1067.5)

rate=5.07%

8 0
3 years ago
Alison Skateland, a real estate broker in Yuba City, California, has recently become interested in the sale of business opportun
Dafna1 [17]

Answer: the correct answer is A) If real property is involved in the sale, the broker (Alison, in this case) usually treats the sale of the business and sale of the land/building as two separate and concurrent transactions with two concurrent and contingent escrows.

Explanation:

The sale of business opportunities may involve the sale of only personal property.

Alison, in dealing with the sale of business opportunities, must remember to inform the purchaser of the various governmental agencies that the purchaser should contact for required permits, licenses, and clearances. These agencies include the IRS, State Board of Equalization, State Department of Benefit Payments, State Department of Industrial Relations, and various other county and municipal agencies.

The sale of a business opportunity includes the business's stock, trade fixtures, and trade name, a competition agreement, and lease assignment. While such a sale also includes the goodwill of a business, a monetary value cannot be placed on the goodwill.

7 0
3 years ago
Money that has been or will be paid regardless of the decision whether to proceed with the project is:
bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
3 years ago
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