Answer:
The correct answer is $13,325.
Explanation:
According to the scenario, the given data are as follows:
Total sales = $487,000
Cost of goods sold = $394,500
Depreciation expense = $43,800
Interest paid = $18,200
dividends paid = $6,500
Tax rate = 35%
so, first we calculate net income.
Net income = ( Total sales - Cost of goods sold - Depreciation expense - Interest paid ) - 35%
= ($487,000 - $394,000 - $43,800 - $18200 ) - 35%
= $30,500 - $10,675
= $19,825
Addition to retained earnings = Net income - Dividends Paid
= $19,825 - $6,500
= $13,325
Hence, the correct answer is $13,325.
Answer:
Estado de inmovilidad de un cuerpo sometido a dos o más fuerzas de la misma intensidad que actúan en sentido opuesto, por lo que se contrarrestan o anulan.
Estado de inmovilidad de un cuerpo, sometido únicamente a la acción de la gravedad, que se mantiene en reposo sobre su base o punto de sustentación.
Explanation:
Answer:
D. only A and B of the above are true.
- A. the market is inefficient.
- B. an unexploited profit opportunity exists.
Explanation:
In simple words, this question is asking why the optimal return or best possible return of an investment is actually higher than the real market return. Generally this can be explained by opportunity costs and profits, or maybe even market inefficiencies caused by external factors (e.g. taxes).
In economics, efficient companies operating in competitive markets will always have 0 economic profit in the long run, that means that the company has maximized its accounting profits and there is no other alternative investment that can provide the same returns.
The same concept applies here, when you maximize your potential returns, it means that there is no other security or investment should yield the same returns. If your returns are actually, it only means that you are missing an opportunity profit (by investing in some other security) or some type of market inefficiency or external factor has decreased the actual return of your investment.
The typical accounting principles/assumption includes Accrual principle, Conservatism principle., Consistency principle, Cost principle, Economic entity principle, Full disclosure principle, Going concern principle, , Matching principle etc.
<h3>What are the correct concept for each of the following activities using the drop-down list?</h3>
- Pastel Paint Company purchased land two years ago at a price of $250,000. Because the value of the assumptions and land has appreciated to $400,000, the company has valued the land at $400,000 in its most recent balance sheet. - The historical cost.
- Atwell Corporation has not prepared financial statements for external users for over three years. - The periodicity assumption.
- The Klingon Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was received. - The realization principle.
- Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense. - Economic entity assumption.
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Answer:
Increase
Explanation:
Note: <u>The given answer is based upon the assumption that the inventory is sold at fair market value</u>.
In the given case, Hunter company would be termed as an "associate" since the quantum of investment of Gunter in Hunter is more than 20% but less than 50%.
Profits earned by Hunter also belong to the Hunter company in proportion to the percentage of investment held, which would comprise of it's cost of control or added to it's own income as per the case.
In the given case, the difference between fair value and book value reflects profit. Gunter's share in such profits shall be added to it's investment revenue which would increase it's investment revenue.
