1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sweet [91]
3 years ago
12

A corporation was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. Dur

ing the first year of operations, net income was $25,000. On December 15, the corporation paid a $2,000 cash dividend. No additional activities affected equity in Year 6. At December 31, Year 6, the corporation’s liabilities had increased to $94,000. In the corporation’s December 31, Year 6 balance sheet, total assets should be reported at
A. $598,000
B. $600,000
C. $692,000
D. $617,000
Business
1 answer:
Kazeer [188]3 years ago
6 0

Answer:

A. $598,000

Explanation:

Total assets = Net Capital Invested

Net Capital invested = Equity + Long Term Debt + Net Income - Any dividends distributed = $500,000 + $75,000 + $25,000 - $2,000 = $598,000

Note: The net increase in liabilities from $75,000 to $94,000 that is $19,000 is increase of current liabilities and not of capital invested.

Therefore, that increase in liabilities will not be considered.

Final Answer

A. $598,000

You might be interested in
John manufactures household furniture. His start-up costs, including tools, plans, and advertising, total \$5000$5000dollar sign
scZoUnD [109]

Answer:

$5,000 + $350f

Explanation:

The computation of the production cost in dollars is shown

Here we use the equation form

The start up cost is $5,000

Labor, material cost $350

Now if he makes f pieces of furniture so, his production cost would be

= Startup cost + labor, material cost

= $5,000 + $350f

Hence, this is the answer and the same is to be provided

8 0
3 years ago
Case Study: Capitalization versus Expensing
Solnce55 [7]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0
3 years ago
Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities
Simora [160]

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

#SPJ4

5 0
2 years ago
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scal
Leya [2.2K]

Answer:

a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)

b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Explanation:

a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.

Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.

From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).

b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.

When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:

\pi ^{Cooperate} = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….

\pi ^{Cooperate} = $6 / 6% = $10

Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that \pi ^{Cheat} = $11

Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because \pi ^{Cheat} > \pi ^{Cooperate}.

Download xlsx
7 0
2 years ago
1. What are the three stages in strategic management? Which stage is more analytical? Which relies most on empowerment to be suc
valkas [14]

Answer:

strategic management: strategy formulation, strategy implementation, and evaluation and control.

3 0
3 years ago
Other questions:
  • Suppose it is 1810. what advice would you give tecumseh to help him be more successful in his goals than he actually was?
    13·1 answer
  • With what kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily?
    8·1 answer
  • Salon Products recently introduced a new all-natural shampoo. Logan, director of new product development, has just reviewed the
    11·1 answer
  • Which of the following would cause a shift in the demand curve loading from point A to point B?
    7·1 answer
  • Imagine that you are a parent with young children. You want to get
    12·1 answer
  • What importance would you attribute to leadership statements and actions for influencing ethical values and decision making in a
    10·1 answer
  • An internal accounting system should:
    10·1 answer
  • Will gie 5 starz thank and braiest
    7·2 answers
  • Indicate the effect each separate transaction has on investing cash flows.
    5·1 answer
  • ______________is the exercise of individual judgement, instead of formal rules, in making decisions.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!