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3 years ago

(c)

Business

1 answer:

ladessa [460]3 years ago

7 0

Answer:

The changes suggested increase income by 16,000 therefore is a good idea to made the changes

Explanation:

Your Mistake is that fixed expenses should remain constant with a sales increase

Current New

Sales $800,000 $ 912,000

Variable $ 480,000 $ 576,000

Contribution $ 320,000 $ 336,000

Fixed $ 270,000 $ 270,000

Net Income $ 50,000 $ 66,000

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Eve's Apples opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability poli

Nutka1998 [239]

Answer: 18,000

Explanation:

Liability policy:

$Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ liability\ policy}{Period\ of\ policy}$

$Insurance\ expense\ per\ month=\frac{36,000}{18}$

= 2,000

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 2,000

= 24,000

Prepaid insurance balance for liability policy on 31 Dec, 2018:

= Prepaid Insurance for liability policy - Insurance expense 2018

= 36,000 - 24,000

= 12,000

Crop damage policy:

$Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ crop\ damage\ policy}{Period\ of\ policy}$

$Insurance\ expense\ per\ month=\frac{12,000}{24}$

= 500

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 500

= 6,000

Prepaid insurance balance for crop damage policy on 31 Dec, 2018:

= Prepaid Insurance for crop damage policy - Insurance expense 2018

= 12,000 - 6,000

= 6,000

Therefore,

Total prepaid insurance balance on 31 Dec 2018:

= Prepaid insurance balance for liability policy on 31 Dec, 2018 + Prepaid insurance balance for crop damage policy on 31 Dec, 2018

= 12,000 + 6,000

= 18,000

7 0

3 years ago

During March, Adams Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume t

ad-work [718]

Answer:

Option (c) is correct.

Explanation:

Variable cost as a percent of sales:

= (Variable expenses ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100

= 60%

If Sales = X

then Variable cost is 0.6X (i.e. 60% of Sales)

Sales - Variable cost - fixed expenses = net operating income

X - 0.6X - 1,500,000 = 300,000

0.4X = 300000 + 1500000 = 1800000

X = 1800000 ÷ 0.4

= 4,500,000

4 0

3 years ago

Cash $ 8,600 Accounts receivable 16,500 Office supplies 2,000 Trucks 173,000 Accumulated depreciation—Trucks $ 35,638 Land 75,00

True [87]

Answer:

Net Income $23,588

Retained Earnings $140,088

Explanation:

To calculate the value of the retained earning at the end of the next year it's necessary to find the income of the current year and then deduct the dividends paid during the year, the remaining value adds to the retained earnings.

This value that we get of retained earnings at the end of the year, it's the value missing at the end of the year to explain the accounting equation of Assets = Liabilitites + Equity

Income Statement Blink

Trucking fees earned $ 135,000

Depreciation expenses -$ 22,987

Salaries expenses -$ 63,315

Office Supllies expenses -$ 13,500

Repair expenses -$ 11,610

Income $ 23,588

Retained Earnings Report

Opening retained earnings $ 135,500

Add: Net Income $ 23,588

Subtotal $ 159,088

Less: Dividens -$ 19,000

Total $ 140,088

BALANCE SHEETS Dec 31

Cash $ 8,600

Accounts Receivable $ 16,500

Office Supplies $ 2,000

TOTAL CURRENT ASSETS $ 27,100

Equipment $ 173,000

Accum Depreciation Truck -$ 35,638

Land $ 75,000

TOTAL NONCURRENT ASSETS $ 212,362

TOTAL ASSETS $ 239,462

Accounts Payable $ 12,600

Interest Payable $ 3,000

TOTAL CURRENT LIABILITIES $ 15,600

Long Term Notes Payable $ 52,000

TOTAL NONCURRENT LIABILITIES $ 52,000

TOTAL LIABILITIES $ 67,600

Common Stock $ 31,774

Retained Earnings $ 140,088

TOTAL EQUITY $ 171,862

7 0

3 years ago

What is the distinction between cross-sectional data and time-series data?

AleksAgata [21]

Answer:

B. Cross-sectional data provides information about economic behavior at an instant in time, while time-series data provides information about how an economic variable behaves over time.

Explanation:

There are two types of data, transverse data and time series data. Cross-sectional data is data that exists at a single point in time. For example, data from an observational survey or sales from a firm. Time series data are data that require intertemporal analysis, such as a country's inflation and GDP data, which should be analyzed for evolution. In other words, time series data are analyzed in a manner dependent on the previous period. Current month's inflation depends on the previous month's inflation analysis.

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3 years ago

What factors are not important in determining exchange rate fluctuations in the long run?

Ratling [72]

speculating in currency markets

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3 years ago