Answer:
(A) Kleiner Merchandising Company:
Goods available for sale = $24,500
Cost of goods sold = $17,900
Gross profit = $3,600
Net income = $1,550
(B) Krug Service Company:
Net income = $16,300
Explanation:
(A) Kleiner Merchandising Company:
Goods available for sale:
= Beginning inventory + Net purchases
= $11,000 + $13,500
= $24,500
Cost of goods sold:
= Goods available for sale - Ending inventory
= $24,500 - $6,600
= $17,900
Gross profit = Net sales - Cost of goods sold
= $21,500 - $17,900
= $3,600
(b) Kleiner Merchandising Company:
Gross profit = $3,600
Net income = Gross profit - Expenses
= $3,600 - 2,050
= $1,550
Krug Service Company:
Net income = Revenues - Expenses
= $26,000 - $9,700
= $16,300
The correct answer is C) imports will decrease and exports will decrease by an equal amount.
In a small open economy with a floating exchange rate, if the government imposes a tariff on foreign goods, then in the new short-run equilibrium: imports will decrease and exports will decrease by an equal amount.
In a floating exchange rate, the currency price of the nation is set by supply and demand. The forex market allows supply and demand to determine the currency exchange rate. The opposite of this situation is a controlled rate in countries where the federal government exert control to the currency.
Answer:
B. $1.12
Explanation:
The computation of arbitrage trading profit is shown below:-
Euro Share price = £0.875
Spot rate R = £0.6366/$1.00
1 ADR Share price in US = $5.75
1 ADR = 5 share of shares
Now, The actual price of 1 ADR P1 = 5 × Euro Share price ÷ Share price in US
= 5 × £0.875 ÷ £0.6366
= $6.87
Therefore, The Arbitrage profit = Actual price - trading price
= Actual price - Price in US
= $6.87 - $5.75
= $1.12
Therefore for computing the arbitrage trading profit we simply applied the above formula.
Answer: the correct answer is A. Deductible temporary difference
Explanation:
The future tax deduction created by the write-off of bad debts will create a future tax benefit and will be recorded on the balance sheet as a deferred tax asset.
If you don’t have the skills and abilities of the interested business you want to start, you might not succeed far.
