Answer:
Since the answer requires construction of a proforma income statement, please refer to the explanation section for the answer
Explanation:
The proforma invoice has been provided below. Sales have been increased by 18%. The question states that costs vary with sales therefore, the costs are kept at the same percentage of sales in the proforma. Costs as a percentage of sales in the question come out to 82%. Taxable income is Sales less Costs. Taxes are 22% of taxable income. Dividend payout ration is calculated by dividends paid divided by total income available to shareholders. Total income available to shareholders includes Net Income PLUS non cash charges (depreciation) MINUS Non Cash Sales. With the information given in the question, it is assumed that non cash charges and non cash sales are zero so the only income available to shareholders is the net income. Dividend payout in the question comes out to 35%.
Sales 57,820.00
Costs 47,554.00
Taxable Income 10,266.00
Taxes 2,258.52
Net Income 8,007.48
Dividend = Dividend payout ratio x Net Income: 0.35 x 8,007.48
So, Dividends = 2,832.00
Addition in Retained earnings = Net Income - Dividend = 8,007.48 - 2,832
So, Addition in Retained earnings = 5,175.48
Answer:
D) none of the statements associated with this question are incorrect.
Explanation:
As the population rises, demand increases and the market demand curve shifts to the right.
As a greater fraction of the population becomes elderly, the fraction of the population needing medical services increases and the demand for medical services will tend to increase. The demand curve shifts to the right.
Changes in the composition of the population affect the demand for a product. For example, if the fraction of the elderly in a population increases, the demand for medical services also increases.
I hope my answer helps you
Specific
Measurable
Agreed upon
Realistic
Time
Answer:
Economic theory' five pillars are opportunities, trade-offs, the expense of opportunity, marginal valuation as well as the theory of value-creating exchange.
In simple words, opportunity cost refers to the cost of losing profits by choosing one alternative over the other. Thus, if Caroline choose to got to music concert, her opportunity cost would be the loss of privilege to be at shopping or dinner. Same applies to other two options.
Answer:
True
Explanation:
In the case when the products is completed in all respects so here the product cost that involved direct material cost, direct labor cost, and overhead cost from raw material inventory would be transformed to the finished goods inventory
Therefore the given statement is true
hence, the correct option is first
