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Vlad [161]
3 years ago
10

McGinnis Construction is a cash-basis company with a fiscal year-end of June 30. McGinnis’ employees earn a normal weekly wage o

f $12,500 during a five-day work week. June 30 falls on a Thursday for the current year. McGinnis also performed services of $40,900 during the last four days of June, but they are not paid in full until July 8. As a result of operations, there will be an ________ of McGinnis’ net income for the most recent fiscal year of:
Business
1 answer:
viva [34]3 years ago
5 0

Answer:

As a result of operations, there will be an understatement of McGinnis’ net income for the most recent fiscal year of 30900

Explanation:

Services             40900

Weekly wage     10000

FY end on June  30900

The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company

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A population of 478 rats has been undergoing linear growth over a five-year period. if the average growth rate was 1.4 rats per
Elanso [62]
The approximate size of the initial population of the rats five years before is 89. With average of 1.4 growth rate per year, it accumulated to 478 rats over the 5 years time. 
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3 years ago
When most cars sold in the United States were produced by the Big Three auto companies, General Motors would announce its prices
photoshop1234 [79]

Answer: Price leadership    

Explanation: In simple words, under price leadership strategy the dominant firm in the industry sets the prices for their products in the first place and then after that the other competing firms sets their prices following that dominating firm.

In the given case, the general motors is practicing price leadership as they are setting the prices in the market initially which is then matched by other firms.

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3 years ago
The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 bi
KiRa [710]

Answer:

Long run real GDP will remain unchanged.

Explanation:

The increase in personal taxes (-$20 billion) would offset any increase in real GDP generated by the increase in private consumption ($20 billion). Nominal GDP can be affected and increase by $20 billion, but the effect would be given by an increase in general price level (inflation), not by an increase in real money.

6 0
3 years ago
Read 2 more answers
Buffalo National Corp. (BNC) is currently an all-equity firm worth $320 million with 50 million common shares outstanding. BNC p
balu736 [363]

Answer:

The solution as per the given problem is provided below throughout the explanation portion below.

Explanation:

The given values are:

Debt issued,

= 120

Pretax earnings,

= 80

Tax,

= 35%

All equity firm,

= $320

Number of common stock,

= 50

(a)

Balance sheet before the debt issue's announcement will be:

<u>Assets </u><u>                                 320</u>

<u>Debt   </u><u>                                    0</u>

<u>Equity  </u><u>                                 320</u>

then,

The total will be "320".

(b)

The per share price will be:

= \frac{Equity}{Number \ of \ common \ stock}

= \frac{320}{50}

= 6.40

or,

After tax, the net income will be:

= EBIT(1-t)

= 80(1-0.35)

= 80\times 0.65

= 52

(c)

The return on equity will be:

= \frac{Net \ income \ after \ taxes}{Value \ of \ equity}

= \frac{52}{320}

= 0.1625

or,

= 16.25 (%)

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3 years ago
The smartphone market has been dominated by Apple, but recently the Droid has been able to leverage Google's information service
BigorU [14]

Answer:

Smartphone Market

Apple, Google, and Blackberry:

This analysis is consistent with the industrial organization  model:

a) True

Explanation:

Industrial organization is the application of the economic theory of price, the structure of markets, and the strategic moves by firms to industrial analysis.  According to investopedia.com, "Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition."

The industrial organization model is a way of  explaining the forces outside an organization that exert influences on a firm's strategic actions.  It is based on the assumptions that decision-makers act rationally, have mobile resources that they control, and that pressures and constraints are imposed by the external environment.

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3 years ago
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