Answer:
D) ($9000)
Explanation:
We calculate the potential advantage and disadvantage by comparing the profits from the two approaches
Approach 1, no processing
Profits = (13*9000) - 9600 = $107,400
Approach 2, with processing
Profits = (18*9000) - (9600 + 54000)
Profits = $98,400
Total disadvantage of additional processing is,
Disadvantage = 107400-98400
Disadvantage = $9000 or ($9000)
Hope that helps.
Answer:
Call an all staff meeting and give everyone the news
Explanation:
Rumors are never good, but rumors about who is getting fired are terrible. I suppose Ben is a supervisor or a manager, and it is his duty to try to prevent false rumors from spreading and panicking the employees. The simple fear of being fired can depress a person or motivate him/her, but the results are unknown until they happen. Ben cannot risk a decrease in productivity because his staff is worried about who is getting fired.
The best way to deal with this is to talk to them directly, as a group, not individually, and let them know what is going on. This is the only way that he can stop rumors, and leave no room for misinterpretation or exaggerations.
Answer:
1. Gateway Bank
3. White Shark Fishing Company
Explanation:
In the scenario being described the two entities that have an insurable interest in Jake or his property would be Gateway Bank and The White Shark Fishing Company. The Bank has an insurable interest because if something where to happen to Jake they would most likely incur the loss of $800,000 that Jake borrowed, the same goes for the boat since without the boat Jake can't earn income to pay back the loan. The White Shark Fishing Company on the other hand entrusts Jake with their cargo, meaning if anything happens to Jake or the Boat they would lose all of their cargo that Jake is transporting. This would cause them to have to incur those loses.
b. If Jake operated the boat on behalf of the White Shark Fishing Company he would have an insurable interest on the boat since he would lose the income that he makes with the boat. Also, if Jake has a contract and is responsible for the boat he might even have to incur the damages for the boat.
Answer:
See explanation section.
Explanation:
December 31, 2017
Bad debt expense Debit = $17,600
Allowance for Doubtful Account Credit = $17,600
To record the bad debt expense
Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.
Answer:
c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year
There is no much risk associated with company
Explanation:
1)Current Ratio = current assets/current liability
2)return on equity= net profit/equity
3)Net Income(%)=net income/sales
4)Fixed Asset Turnover= Sales/Fixed asset
5)Debt ratio=debt/assets
