Answer:
A. less than 5 times as much as your grandfather in terms of real income.
Explanation:
Nominal income is earning that does not take account of changes in price levels. Nominal income is the stated income. Real income considers the changes in inflation. Therefore, real income is nominal income after considering inflation effects.
If grandfather earned $7000 per year in 1961, and myself $35,000 in 2018, mathematically i earned five times more than him. The five times ($35,000/$7,000) is the stated amount without factoring in inflation. The difference between $35,000 and $7000 is the nominal difference because it is not adjusted for inflation. In we consider inflation, the real income is less than five times.
Answer:
The company's net operating income for May is $7,930
Explanation:
Sales revenue = $97,000
Variable costs
= $97,000 × (1 - 70%)
= $97,000 × 0.69
= $66,930
Fixed costs = $38,000
Therefore, net operating income = Sales - revenue - variable cost - fixed cost
= $97,000 - $66,930 - $38,000
= $7,930
Answer:
$5,225
Explanation:
Calculation for What should Tringali report as its deferred income tax liability as of the end of its first year of operations
Using this formula
Deferred income tax liability=Temporary difference-depreciation*Tringali's tax rate
Let plug in the formula
Deferred income tax liability= $20,900 * 25%.
Deferred income tax liability=$5,225
Therefore What Tringali should report as its deferred income tax liability as of the end of its first year of operations is $5,225
Answer:
a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.
Explanation:
As we know that inventory will be recorded at cost or market value whichever is lower. But in the given case, the replacement cost would be recorded at higher values and lesser values. Higher values represent the Net realizable value whereas the lesser values represent the net realizable value less than the normal profit margin.
And if the replacement cost lies in this range than it represents the designated market value.
Hence, option a is correct.
Answer:
The working capital for 2017 is $15,500
Explanation:
Working capital: It shows a difference between the currents and the current liabilities
In mathematically,
Working Capital = Current Assets - current liabilities
where,
Total current assets = Cash + short-term investments + net accounts receivable + merchandise inventory
= $46,500 + $24,000 + $57,000 + $158,000
= $285,500
And, the current liabilities = Accounts Payable + Salaries Payable
= $133,500 + $17,000
= $150,500
Now put these values to the above formula
So, the value would equal to
= $285,500 - $150,500
= $15,500
