Answer:
C. $3,685
Explanation:
Total dividends paid in first 4 years
= $2,410 + $0 + $1,570 + $1,060
= $5,040
Retained Earnings ending balance is the net of the total income earned over the years less the total dividend paid through the years.
Retained Earnings ending balance = Total income - total dividend paid
$9,700 = Total income - $5,040
Total Income = $9,700 + $5,040
= $14,740
Average annual amount of net income (loss) over the first four years for Aikman
= $14,740/4
= $3,685
Option C.
Answer:
b. Accounts receivables (gross) is reduced
Explanation:
As we know that
The journal entry to record the bad debt expense is
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being allowance of uncollectible accounts are recorded)
By passing this journal entry, both bad debt expense and the allowance for doubtful debts which result in a decrease in the net income and the balance of account receivable but the gross of account receivable would remain the same.
Answer: A seller has about 72 hours to decide what to do with an offer
Explanation: A seller has 72 hours to accept a buyers offer in as much as the offer does not have an expiry date.
An offer is made to buy an asset which is usually between a willing , knowledgeable buyer and a seller at an armslenght transaction.
Answer:
the ending cash balance is $330,300
Explanation:
The computation of the ending cash balance is shown below:
Ending cash balance = Opening cash balance + Profit
= $270,000 + (9% × $670,000)
= $270,000 + $60,300
= $330,300
We simply added the opening cash balance and the profit so that the ending cash balance could come
Hence, the ending cash balance is $330,300
Answer:
The actions of the Fed in 2009 are consistent with an expansionary monetary policy and this policy reduces or keeps interest rates low.
When the Fed bought that many government securities, they flooded the economy with $300 billion in cash. This cash would make its way into the pockets of people and into their bank accounts as savings.
With that many savings, banks would have much more money to loan out to people and as a result of this increase in the supply of loanable funds, interest would fall in order to entice people to borrow more of these excess funds.
