If the contribution margin is not sufficient to cover fixed expenses:

If a $4,000 debit to Equipment in a journal entry is incorrectly posted to the ledger as a $4,000 credit and the ledger account

Dovator [93]

Answer:

The totals of Trial balance have a difference of $8,000. The credit balance totals of Trial balance is higher than the debit totals because the original entry of debit is mission and there is an wrong posing on the credit side which reduce the debit balance by $4,000 and Increase the credit balance by $4,000 at the same time. Net effect will be $8,000 in totals of trial balance.

4 0

2 years ago

Techniques to increase productivity in the performance of discrete tasks, by requiring less human labor in each step of the prod

goldfiish [28.3K]

I think it’s C !!!!!!!!!!!!!!!!!

7 0

2 years ago

Gilbert Company made an ordinary repair to a delivery truck during 2016 at a cost of $500 and capitalized the repair cost. What

Leto [7]

Answer:

The answer is:

Asset will be overstated

Net income will be overstated

Explanation:

Because of the incorrect capitalization(the process of converting or adding to a firm's asset):

1. Assets are overstated. Assets that shouldn't are added to the entire assets are added. So it's increasing the company's asset whereas it's not.

2. Net income are overstated. Because depreciation too will have to be charged for the asset that wasn't there, therefore, net asset will be overstated.

7 0

3 years ago

Denver Mart is considering a project with a life of 5 years and an initial cost of $136,000. The discount rate is 11 percent. Th

Ray Of Light [21]

Answer:

Denver Mart

The net present value of this project given the sales forecasts is:

= $98,400.40

Explanation:

a) Data and Calculations:

Project's estimated life = 5 years

Initial project cost = $136,000

Discount rate = 11%

Initial estimated sales = 2,200 at $26

Revenue in years 1, 2, and 3 each = 2,200 * $26 = $57,200

Sales forecast of Year 4 and 5 revised to 1,750 units

Probability of 1,000 * 50% = 500

Probability of 2,500 * 50% 1,250

Total sales forecast = 1,750 units

Revenue in years 4 and 5 each = 1,750 * $26 = $45,500

Present value of revenue:

Year 1, 2, and 3 = $57,200 * Annuity factor

= $57,200 * 3.102 = $177,434.40

Year 4, PV = $45,500 * 0.659 = $29,984.50

Year 5, PV = $45,500 * 0.593 = $26,9815

Year 1 to 5 added = $234,400.40

Present value of revenue = $234,400.40

Present value of costs = 136,000.00

Net present value = $98,400.40

8 0

3 years ago

Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The

Natasha2012 [34]

Answer:

Country (Z) GDP Growth:

a) The GDP will double in:

2019 - 2022 = 3 years

2022 - 2025 = 3 years

2025 to 20 years as determined below

Total = 26 years

The GDP will double in 26 years.

b) The growth rate from 2025 and so on at 1% will approach 27.62% based on the 2019 GDP. The approach used is to determine the difference between the after 2025 GDP and the 2019 GDP. This difference (growth in absolute terms) is divided by the 2019 GDP, and then multiplied by 100 to obtain the rate.

c) If the growth rate of 5% is sustained, it will take the GDP 15 years to double:

420,000 = G₀(1 + g)ⁿ

420,000 = 210,000 (1 + 5%)ⁿ

Solving for n with an online calculator,

n = 15 years

Check:

210,000 x 2.079

= 436,590

= 437,000 approx.

As a number of years = 15 years

As a fraction of part a answer = 15/26 = 57.69%

Explanation:

a) 2019 Country Z's GDP = 210,000

2019 - 2022 Growth rate = 5%

Future growth rates:

2022- 2025 = 3%

2025 - so on = 1%

Let Country (Z's) GDP in 2019 = G₀ which is equal to 210,000

n = number of years from 2019 to 2022, 2022 to 2025, and so on.

g = growth rate = 5% for the period 2019 to 2022

Gⁿ = GDP in n years at given rates

Gⁿ = G₀(1 + g)ⁿ

(1 + g)ⁿ = increase in GDP as a result of the growth rate and number of years

b) With GDP growth of 5% from 2019 to 2022, the GDP will be

= 210,000 (1 + 5%)³

= 210,000 x 1.158

= 243,000 approx.

c) From 2022 to 2025 at 3%, the GDP will be

= 243,000 (1 + 3%)³

= 243,000 x 1.093

= 265,600

For GDP to double the 2019 GDP with 3% growth = 420,000 (210,000 x 2) or more

GDP = Gⁿ = G₀(1 + g)ⁿ

420,000 = 243,000 (1 + 3%)ⁿ

solving for n with an online calculator,

n = 20

Check:

= 243,000 (1 + 3%)∧20

= 243,000 x 1.817

= 441,531

= 442,000

4 0

3 years ago