Answer:
Investment income of $46,000 in its income statement
Explanation:
Calculation for the amount that Smith will report in the 2018 financial statements,
Investment income =Fair value of $594,000-Purchased $548,000
Investment income =$46,000
Therefore Smith will report investment income of $46000 in its 2018 financial statements,
Answer:
(B) outflow of $300,000
Explanation:
The change in net working capital of the Company A shall be determined through the following mentioned equation:
Change in net working capital=Percentage of sales in year 2-Percentage of sales in year 1
Change in net working capital=0.30*$2,000,000-0.30*$1,000,000
=$300,000 out flow
So based on the above calculations, the answer shall be (B) outflow of $300,000
Answer:
a. $129,500
Explanation:
Conversion costs includes all those costs which are used to convert the raw material into the finished goods. All the manufacturing costs excluding material costs are included in the conversion cost.
Total Conversion Cost is calculated as follow:
Direct Labor cost $84,000
Add: Applied Factory overheads <u>$45,500</u>
Total Conversion cost <u>$129,500</u>
Answer:
Decrease
Explanation:
Given that
Change in quantity demanded = 6%
change in price = 14%
Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)
= 6% ÷ 14%
= 0.42
Price elasticity of demand is greater than 1 that which means demand is elastic. Therefore the increase in price, the revenue will decrease because demand is elastic.
