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andreev551 [17]
3 years ago
5

A business will construct its financial statements in a particular order because they are interrelated. This means that items fo

rmulated in an earlier statement feed into the subsequent statements, and changes to items on one financial statement can have compounding effects on the overall financial position of a company. Which of the following is one reason the statement of owner's equity is prepared after the income statement?
a. Retained earnings are computed on the income statement.
b. Net income is the beginning retained earnings amount.
c. Retained earnings is really an asset.
d. Net income is part of the computation for ending retained earnings.
Business
1 answer:
Blizzard [7]3 years ago
7 0

Answer: d. Net income is part of the computation for ending retained earnings.

Explanation:

In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.

Retained Earnings are calculated by the formula,

Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends

Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.

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Suppose that the demand for milk in the United States is represented by the following equation, where P is the price of a gallon
Nostrana [21]

Answer:

a.

P = $3.50 per gallon

b.

Equilibrium Quantity = 165 million gallons

Explanation:

a.

The equilibrium price is the price at which Quantity demanded equals quantity supplied. To calculate the equilibrium price using the given equations for demand and supply, we need to equate both equations.

<u>Equilibrium Price (P) calculation</u>

QD = QS

200 - 10P  =  -10 + 50P

200 + 10  =  50P + 10P

210 = 60P

P = 210 / 60

P = $3.50 per gallon

b.

The equilibrium quantity can be calculated by inserting the value of Price (P) in any of the equation for demand or supply.

Equilibrium Quantity = 200 - 10(3.50)

Equilibrium Quantity = 200 - 35

Equilibrium Quantity = 165 million gallons

8 0
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Why should people care about the amount of production that takes place within the economy
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4 0
3 years ago
Brady knows that the brakes on his car do not work, but he tells celia, a potential buyer, that there are no problems with the c
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<span>The correct answer would be C. Fraudulent Misrepresentation. In this case Bradley was fully aware that the brakes in his car do not work, just because he got a good buyer he knowingly did not disclose the faults with the car and lies that it is free of issues. This is called intentional Fraudulent Misrepresentation.</span>
6 0
3 years ago
Nico wants to buy a new digital camera for his semester studying abroad but he knows very little about cameras, having never own
Darina [25.2K]

Answer: External research

Explanation:

External research is referred to as or known as a research conducted when an individual does not have any prior knowledge or information about a commodity or product, which further leads the individual to seek data and information from the personal sources such as friends or family and also the public sources i.e. online forums or in other cases the marketer dominated source i.e. sales persons especially at times when an individual’s previous experience is known to be limited.

3 0
3 years ago
In 2006 Hewlett-Packard repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million. Othe
Hunter-Best [27]

Answer:

B) Decreased $138 million

Explanation:

To determine the effects of long term debt accounts on HP's total cash flow form financing we can use the following formula:

HP's cash flow from financing = new shares issued - shares repurchased - dividend payments + cash flows related to long term debt account + income from other financing activities  

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-$138 = X

HP's long term debt accounts decreased by $138

8 0
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