Answer:
B. Credit to the fair value adjustment for $6000
Explanation:
December 31 (year 2)
Fair value adjustment account balance = $10,000 (Debit)
December 31 (year 3)
Fair value adjustment account balance = $154,000 - $150,000 =$4,000 (Debit)
As you can see in year 2 there were only $10,000 (debit) in fair value adjustment account but in year 3 the value dropped down to 4,000 debit which leads us to the journal entry of $6,000 Credit in fair value adjustment account balance
Answer:
use socratic its in the app store
Explanation:
Answer:
Short-run is a time limit during which at least one input can be fixed and other input quantities can be verified.
The long run is a time period in which all the inputs can be verified in quantities.
Explanation:
- Both the fixed and variable costs occur in the short term.
- There are no fixed costs in the long term.
- The combination of the output of a company results in the desired amount of the goods at the lowest possible cost is sustained by efficient long-term costs.
- The output changes variable costs. For instance, the employee's salaries and raw material costs are variable costs.
- Based on variable costs and the production rate, the short-run costs are increasing or falling. If a company manages its short-term costs well over time, the desired long-term costs and goals will more likely be achieved.
Answer:
A. 34.2%
B. 4.5%
C. 8.1%
D.10.64%
Explanation:
a) Calculation to determine Gross margin percentage
Using this formula
Gross margin percentage = Gross profit/Net Sales
Let plug in the formula
Gross margin percentage= 27000/79000
Gross margin percentage = 34.2%
b) Calculation to determine Net profit margin
Using this formula
Net profit margin = Net income/Net Sales
Let plug in the formula
Net profit margin = 3540/79000
Net profit margin = 4.5%
c) Calculation to determine Return on assets
Using this formula
Return on assets = (Net income+Interest expense)/Average total assets
Let plug in the formula
Return on assets = (3540+360)/48120
Return on assets= 8.1%
d) Calculation to determine Return on equity
Using this formula
Return on equity
= Net income/Average equity
Let plug in the formula
Return on equity = 3540/33270
Return on equity =10.64%
