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Allushta [10]
3 years ago
12

M8-1 Evaluating the Decision to Extend Credit [LO 8-1 Nutty Productions Inc. generated service revenue of $48,000 and income fro

m operations of $19,000. The company estimates that, had it extended credit it would have instead generated $87,000 of service revenue, but it would have incurred $34,000 of additional expenses for wages and bad debts. 1-a. Using these estimates, calculate the amount by which Income from Operations would increase (decrease) Income from Operations by 1-b. Should the company extend credit? Yes No
Business
1 answer:
emmasim [6.3K]3 years ago
7 0

Answer:

Yes

Explanation:

In this question, we have to compare the total income based on credit extended The computation is shown below:

If credit is not extended, then the total income would be

= Service revenue + income from operations

= $48,000 + $19,000

= $67,000

If credit is extended, then the total income would be

= Service revenue + income from operations - additional expenses for wages and bad debts

= $87,000 + $19,000 - $34,000

= $72,000

Yes the company extend credit as the total income is increased by $5,000

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B total quality management
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3 years ago
The safe-harbor provision:​ a. ​none of the above b. ​is part of SOX. c. ​provides lawyers with protection from "up the ladder"
olga nikolaevna [1]

Answer:

The correct answer is letter "A": none of the above.

Explanation:

The safe-harbor law is a regulation that helps defendants to be found not liable on certain situations under certain conditions where according to strict law they were to be responsible. Most of the time, in cases where the law is so unclear or unknown, defendants can be subject to the safe-harbor provision for their liabilities to be forgiven.

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3 years ago
Guiding, teaching, and supervising employees are activities associated with: Group of answer choices staffing. leading. organizi
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Answer:

b. leading

Explanation:

Leading is an activity that requires conceptual skills from an individual to guide, teach and supervise employees.

For a company to succeed and position itself in the market, it is necessary that leadership is based on ethical values that help in creating an organizational culture favorable to the development of each employee, and other essential skills, such as knowing how to communicate, offer assistance, provide feedback, understand each worker profile, in order to guide the work towards the achievement of objectives and goals.

An effective leader is one who, through his own examples as a professional, manages to motivate employees to be more productive and satisfied with their work.

8 0
3 years ago
A company began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was avail
o-na [289]

Answer:

$818,935

Explanation:

Percentage of-revenue method:

$4,000,000

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Hence;

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Therefore the amortization of the software development costs would be $818,935

8 0
4 years ago
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netineya [11]

Answer: Monopolistically competitive structure.

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6 0
4 years ago
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