Answer:
$937.50
Explanation:
The Income Statement uses the accruals accounting concept when recording expenses. This concepts state that expenses must the recognized in the period in which they occur. This also applies to revenue or income.
What this means is that for this three-year insurance policy, we will be recognizing as an expense, that portion which has been incurred from the date of purchase to the end of the first financial period that is 9 months.
Calculation of the amount of the insurance expense will be reported on the annual income statement :
Insurance Expense = $3,750 × 9/36
= $937.50
I have converted 3 years (36 months) to months to deal with months only so as to make it easy for apportionment.
Answer:
C. a higher price and produce a smaller output than a competitive firm.
Explanation:
A monopolistic producer will charge a higher price when confronted with the same unit cost data. The producer will also produce less of the item to make it appear more in demand. In turn, this allows the producer to make more money by spending less on labor and materials. Their overhead is reduced as well. This is seen as a competitive way to market their product and make it seem better and that it sells faster so keeping up with demand is difficult, even though it is completely false.
Plowback ratio, long-term debt ratio, return on equity are three figures must remain constant to determine a firm's sustainable growth rate
<u>Explanation:</u>
Sustainable growth is the realistically achievable extension that a company could own outwardly falling into difficulties. A firm can simply improve financial support if there are assets that can be guaranteed and if its debt-to-equity ratio is sensible concerning its production.
The decrease in dividends typically wrecks the company's stock price. ROE estimates the profitability of a company by examining net income. If the company grows outside equity or expands its debt-equity ratio, it can arise at a greater rate than the sustainable growth rate. The company would require to acquire supplementary debt or equity to obtain up for this cash flow shortfall.
<span>The married couple probably does not mind outsiders thinking this of them because the married couple actually knows what is happening in their relationship. While it may appear to others that there is inequity, the couple knows the truth of their relationship and therefore does not let other people's opinions affect them.</span>
Answer:
The number of units must be sold to yield a target operating income of $26,000: 5,600 units
Explanation:
Contribution margin per unit = Sales price – Variable cost per unit = $32-$27=$5
The number of units must be sold to meet the target income figure are calculated by using following formula:
The number of units must be sold = (Total fixed cost + Targeted income) / Contribution margin per unit = ($2,000 + $26,000)/$5 = 5,600 units
