Answer:
2017 Net Income = $53000
2018 Net Income = $87000
Explanation:
The overstatement of ending/closing inventory causes the Cost of Goods Sold (COGS) to be understated and the Gross and Net profit to be overstated by the same amount.
If the 2017 ending inventory was iverstated by $7000, the correct profit figure for 2017 will be $7000 less than is reported.
2017 correct Net Income = 60000 - 7000 = $53000
An overstatment of ending inventory in one year also means and overstatement of opening inventory of the next year. Thus, the 2018 opening inventory is overstated by $8000 and an overstatement of opening inventory means an overstatement of COGS and an understatement of Gross and Net Income by the same amount.
Thus, the correct Net Income for 2018 = 80000 + 7000 = $87000
Answer:
$56.19
Explanation:
Because Hot Wings' stock only pay dividend in next four years, the stock intrinsic value is sum of these four discounted dividends. Let formulate the calculation as below:
Hot Wings' stock intrinsic value = Dividend in year 1/(1 + Required rate of return) + Dividend in year 2/(1 + Required rate of return)^2 + Dividend in year 3/(1 + Required rate of return)^3 + Dividend in year 4/(1 + Required rate of return)^4
= (10.25 + 8.25)/(1 + 12%) + (10.25 + 8.25)/(1 + 12%)^2 + (10.25 + 8.25)/(1 + 12%)^3 + (10.25 + 8.25)/(1 + 12%)^4 = $56.19
Answer:
The right option is (C)
Explanation:
The economic model of corporate social responsibility explains that a company should focus on providing their customers with the best product possible and they should manufacturing goods which public needs. The only way to benefit society is to leave society alone and work to provide market profit products that society needs. The management of online retail store is establishing a complete opposite framework.
The two main advertising types that would work best for Nathaniel are direct marketing and support media. Direct marketing involves sending information out directly to people in efforts to reach them quickly and directly. They hope to have a direct response from those they mail the information to. If Nathaniel wants to bring awareness to dyslexia, by sending the information directly to consumers, he may reach people he wouldn't have otherwise. Support media adds information that is not usually included in traditional marketing. This type could be billboards, directories and other common areas that people visit to bring awareness on a larger scale.
