Answer:
Actions that would be most likely to reduce potential conflicts of interest between stockholders and managers are:
The composition of the board of directors is changed from all inside directors to all outside directors, and the directors are compensated with stock rather than cash.
Explanation:
For instance, Company XYZ will get its managers' conflict of interests reduced as it achieves goal congruence. The absence of goal congruence pushes the managers of Company XYZ not to run the business professionally in the best interest of their stockholders. But, by aligning the interests of managers with those of the stockholders through more stock compensation, managers are constrained to act in the best interest of all stockholders, including themselves.
Answer:
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Answer:
C. Estimated Warranty Payable for $15,900
Explanation:
The journal entry is shown below:
Warranty expense $15,900
To Estimated warranty liability $15,900
(Being the warranty expense is recorded)
The computation is shown below:
= Monthly sales × estimated given percentage
= $530,000 × 3%
= $15,900
We simply debited the warranty expense as it increases the expenditure and credited the liabilities as it also increases the liabilities account
Answer:
The change in cash balance is $5,400.
Explanation:
Statement of Cash Flows summarizes use of cash in three main activities namely operating activities, investing activities, and financing activities.
The change in the cash balance can be calculated based on the net of cash inflows and outflows.
Depreciation expense is a non-cash item, therefore, it should not be included in the calculation.
Activity Cash Inflow/ (Outflow)
Cash from Operations $10,000
New investment ($1,600)
Repayment of debt ($2,000)
Cash dividends ($1,000)
Net Cash Flow $5,400
Answer:
$1,307
Explanation:
The computation of the future value by using the following formula is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
$1,500 = Present value × (1 + 0.035)^4
So, the present value is
= $1,500 ÷ (1.035)^4
= $1,307
Hence, the present value is $1,307 and the same is to be considered
