A corporation's annual report includes information about the activities that the corporation carried out during the year. They should give shareholders and other economic agents a comprehensive view about the corporation's performance. The annual report should include the financial statements, the expected cash flows, and other relevant financial information.
Given that the cost per textbook is $27, we know that the addition of variable and fixed Cost gives total cost.
We will multiply variable cost per textbook of $20 with current volume of book sold per year 43,000, which gives a total variable cost of $860,000.
Also, total cost would be 43,000 multiplied with $27 , which is $1,161,000 minus the total variable cost of $860,000 equals $301,000 which is the associated fixed cost.
A disruptive innovation can be defined as an innovation that typically creates a new market for a product by displacing or removing an existing product from the market.
Digital photography replacing film photography would be an example of a disruptive innovation.
The only movement that impact the total assets it's:
Kirk Corporation acquired equipment costing $3,000, promising to pay cash for it in 60 days.
Due to the equipment was finance by the supplier by 60 days it has a positive impact on assets and liabilities.
The others transactions:
Kirk Corporation purchased $1,750 of supplies for cash, it has no impact because the supplies was paid with cash, so the impact on assets is zero.
The land had cost $7,500 and it was sold for $7,500 cash. The land it's a long term assets that was sold for cash, so it was converted to current assets in money.
Kirk Corporation signed an agreement, the impact it's in the next month, so it has no impact the current month analized.
