Sure, here is my possible correct answer:
1. 38.64 - 34.50 = 4.14
2. 4.14 x 600 = 2484
So, Mitchell would earn $2484 in (gross) profit.
I hope it helped you!
Answer:
Investment in the investee will be overstated, retained earnings will be overstated.
Explanation:
The effect on the investor’s statement of financial position is shown below:-
Because the investor owns more than 30 percent of the equity approach has to be used. This will result in overestimated investments of $8,000 which comes from $20,000 × 40 percent in investee, which will also result in overestimated retained earnings of $8,000 which comes from $20,000 × 40 percent
Answer:
The entire definition given in the question is true. A company's debt can be divided into two parts:
- one part that has been obtained through bank loans and therefore doesn't have a specific market value since it cannot be traded. Banks can and do trade their clients' debts, but a client cannot trade their own debt with a bank. Banks consider debts an asset, not a liability.
- if a company issued bonds or preferred stock, the market value of their debt will include the coupons and dividends distributed, and the market value at which the securities are traded in the market. Many times bonds are traded with a discount or premium which reduces or increases the market value of the debt. Also, the value of preferred stock varies and that also affects the market value of debt.
Answer:
The correct answer is letter "A": Employees must trust that management will accurately disclose financial and profit information.
Explanation:
Profit-sharing plans are retirement plans that allow only employers to make contributions to the plan. Those contributions are allocated according to the profits the company earns by quarter or year. The firm creates a calculation method to determined what amount is going to be provided to each employee. Then, workers rely on the company's integrity to disclose the true amount of revenue it generated over the past period, and according to it allocate compensations for workers responsibly.
