Answer: c. $94,240
Explanation:
On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.
Note payable value = Present value of seven $20,000 payments
= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.
= 20,000 * 4.712
= $94,240
Answer:
- Contribution margin of product.
- Selling price of supplier.
- Interference with other production.
Explanation:
The selling price offered less the contribution margin will determinate if the order generates a positive contribution for itself
If that number is negative the order should be rejected. if positive then, the analysis continues:
Interference with other production, if the company has to renounc e to selling in another marker for this order then; the differenctial revenue should be considered as it's an opportunity cost.
Answer: It is not impaired
Explanation:
Goodwill $ 400,000
Carrying amount. $ 800,000
Fair Value $ 1,000,000
Here, the fair value is more than the carrying amount. When the fair value or
the market value is more than the carrying amount, there is no need of the impairment of goodwill.
a.Goodwill associated with the MLD is not impaired because the fair value is greater than the carrying amount of MLD's net assets including the goodwill.
b. No journal entry is required, since there is no impairment.
Answer:
The statement is: True.
Explanation:
Several factors influence the revenues of a business. <em>Change in consumers' patterns</em> is one of them. Individuals' behavior, needs, and expectations are not static. They vary over time. Firms must be aware of what tendencies are in the market to keep up with the changes. Otherwise, a company can lose its market share because of not knowing what is driving consumer purchases.
Another factor influencing institutions' profits is<em> consumer income</em>. If income decreases or if price rises but income keeps the same level, consumers will lose purchasing power decreasing the quantity demanded in different products which are translated in losses for companies.
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