A. The size of the factory is fixed.
We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.
Answer:
Total Stockholders' Equity = $2,334,370
Explanation:
Note: See the attached excel file for the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2018 with all the formulae used.
In the attached excel file, the retained earnings is calculated as follows:
Retained earnings = Net income – Common dividends - Preferred dividends = $149,000 - $94,000 - $1,330) = $53,670
From the attached excel file, we have:
Total Stockholders' Equity = $2,334,370
Inventory turnover rate = 8 times
Cost of goods sold = $150,000
Then the average inventory of company is $18,750.
This is how we calculate this;
Cost of goods sold / inventory turnover rate =
$150,000 / 8 = $18,750.
Answer:
Answer is option b i.e. Discharged.
Explanation:
Discharge of a contract takes place either on completion of a contract or when a contract is terminated due to various reasons like; discharge by mutual agreement, discharge by the impossibility of performance, discharge of contract due to lapse of time, discharge by operation of law, and discharge by breach of contract. Here, in the given case, the contract between Clyde and Deephole Excavation Inc. is discharged by the operation of law as the court has ordered to halt the digging further.
