Answer:
(a)- Its assets will increase, as will its equity
Explanation:
The commercial terms state FOB shipping point therefore the transfer succeeds once the cargo enter the port.
The sale is thus completed. The revenue can be recognize thus, increasing the company's equity and assets.
Account receivable(+Assets) debit
Sales Revenue(+Equity) credit
Answer: Restructuring cost
Explanation:
Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.
Answer: 10 bushels
Explanation:
If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:
= 100 / 100
= 1 work hour
For bushels however, 1 worker hour produces:
= 25 / 100
= 0.25 bushels of corn
If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.
Bushels of corn produced is therefore:
= 40 * 0.25
= 10 bushels
First, we calculate for the effective annual interest given the interest in the scenario.
ieff = (1 + i/m)^m - 1
Substituting the values,
ieff = (1 + 0.04/12)^12 - 1 = 0.0407
The effective interest is equal to 4.07%.
The future amount after 2 years,
F = ($6000) x (1.0407)^2 = $6498.86
