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vivado [14]
3 years ago
13

Rothbart Manufacturing agrees to manufacture bumper cars for 12 Banners Amusement Parks. Under the terms of the contract, 12 Ban

ners will pay Rothbart a total of $60,000, and 12 Banners can cancel the contract if it so chooses but must pay Rothbart for work completed. Rothbart believes that, if 12 Banners cancelled the contract, Rothbart could sell the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2016, the job is 80% complete. How much revenue should Rothbart recognize in 2016 for this contract
Business
1 answer:
Norma-Jean [14]3 years ago
5 0

Answer:

Rothbart Manufacturing

From the case study, Rothbart Manufacturing has incurred an equivalent cost of 80% in the manufacture of the bumper cars, it should then recognize revenue of $48,000 ($60,000 * 80%) under the percentage of completion method.

However, under the new IFRS 15 or ASC 606 Revenue from Contracts with Customers, Rothbart Manufacturing can only recognize revenue based on the fulfillment of the contract's performance obligations, evidenced by the transfer of the asset or some benefits to the buyer.

I do not see any transfer of benefits here.  Instead of recognizing any revenue the current year, Rothbart Manufacturing should assign the cost incurred so far (80%) to Work in Process Inventory, which is a current asset.  It can then recognize revenue when the bumper cars are sold.

Explanation:

The International Financial Reporting Standard (IFRS) 15 specifies when revenue from contracts with customers should be recognized.  This standard is equivalent to the US Accounting Standard Code 606.

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Salcia is a country that depends heavily on domestic products. The Salcian government decides on the products that can be import
hoa [83]

Answer:

D) Mercantilism

Explanation:

Based on the information provided within the question it can be said that Salcia's approach to international trade is being influenced by Mercantilism. This term refers to a policy that was created in order to maximize exports of a nation while at the same time minimizing the imports. This is what Salcia is trying to accomplish by not importing anything that they can make at home.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Best Foods Co. is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criteri
WITCHER [35]

Answer:

Option  E                    

Explanation:

In simple words, the given case illustrates the cost analysis method for choosing target market segments. Under such criterion of selection, the subject company identifies various costs that it must bear in order to operate in some potential segment and after identifying those cost, such company evaluates if there will be any profit left for them in the market.

This method is complex, time consuming and needs experts advise but still is most popular nowadays as it gives most accurate results by identifying various quantitative and qualitative factors.  

3 0
3 years ago
Marcus deposited his paycheck in the amount of $625.84. He'll use the check register to record his transaction. What will be
julia-pushkina [17]

Answer:

$1266.15

Explanation:

3 0
2 years ago
Read 2 more answers
Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equi
Reil [10]

Answer:

9.73%

Explanation:

the market value of equity = 10,000,000 stocks x $15 = $150,000,000

the market value of debt = 40,000 bonds x $1,150 = $46,000,000

total = $196,000,000

weight of equity = 0.7653

weight of debt = 0.2347

Re = 3.5% + [1.35 x (0.115 - 0.055)] = 0.035 + 0.081 = 0.116

cost of debt = ytm = {36.25 + [(1,000 - 1,150)/40]} /  [(1,000 + 1,150)/2] = (36.25 - 3.75) / 1,075 = 32.50 / 1,075 = 0.03023 x 2 = 0.0605

after tax cost of debt = 0.0605 x (1 - 40%) = 0.0363

WACC = (0.116 x 0.7653) + (0.0363 x 0.2347) = 0.09729 = 9.73%

3 0
3 years ago
A local college of business offers an outstanding graduate business school education program. Marissa pays the tuition to attend
rewona [7]

Answer:

Yes, it was a marketing exchange

The payment made of the tuition was exchanged for the knowledge that led Marissa to the new paid and satisfactory job.

Explanation:

Given that changing means taking one thing for another, in the context of marketing, we understand by exchange relationship an act of communication where the parts involved (two or more) make the offer and reciprocally deliver something of value ( comparison with other objects) and useful (measure of the satisfaction obtained when receiving something of value) that passes to the other part.

3 0
3 years ago
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