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3 years ago

The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2016 and 2017.

Business

1 answer:

Step2247 [10]3 years ago

7 0

Answer:

Explanation: Ik weet het echt niet en ik ga je plagen met mijn antwoord, ik verwacht niet dat je je moeder afbreekt op zoek naar dit haha.

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Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill thro

Grace [21]

Answer:

d. The $1,500,000 is not taxable because Detroit settled the case

Explanation:

The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.

8 0

3 years ago

Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At

SVETLANKA909090 [29]

Answer:

$165,500

Explanation:

Given that,

Sales (4,900 × $90) = $ 441,000

Cost of goods sold (4,900 × $38) = 186,200

Gross margin = $ 254,800

Selling and administrative expenses = $75,000

Net income = $ 179,800

Production costs per tennis racket total = $38

Variable production cost = $25

Fixed production cost = $13

Units produced = 6,000

Contribution margin:

= Sales - Variable production costs

= $441,000 - (4,900 × 25)

= $441,000 - $122,500

= $318,500

Fixed costs = Fixed production costs + Selling and administrative expenses

= ($13 × 6,000) + $75,000

= $78,000 + $75,000

= $153,000

Net income under variable costing:

= Contribution margin - Fixed costs

= $318,500 - $153,000

= $165,500

8 0

3 years ago

Chisholm Associates uses the indirect method to prepare the operating activities section of the statement of cash flows. The fol

Kobotan [32]

Answer:

$58100

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in an asset other than cash is an outflow of cash while an increase in liabilities is an inflow of cash. A decrease in an asset other than cash is an inflow of cash while an decrease in liabilities is an outflow of cash.

Change in

Accounts receivable = $ 42,550 - $ 32,100=

= $10450 (Asset)

Prepaid insurance = 3,550 - 6,700

= -$3150 (Asset)

Accounts payable = 28,350 - 26,100

= $2250 (liability)

Unearned revenue = 6,350 - 8,500

= -$2150 (liability)

The net cash flows from operating activities

= $65,500 - $10450 + $3150 - $2250 + $2150

= $58100

7 0

3 years ago

A customer has purchased 1,000 shares of ABC stock at $44 per share, paying a commission of $1.00 per share for the transaction.

Sonbull [250]

Answer:

Option D) 1,200 shares held at a cost basis of $37.50 per share

Explanation:

Data provided in the question:

Number of shares of ABC stocks purchased by the customer = 1,000

Price per share of ABC stock = $44

Commission paid = $1.00 per share

Stock dividend declared = 20%

Now,

The Payment of a stock dividend will increase the number of shares held by the investor

also,

each share is theoretically worth less after the stock dividend is paid.

Therefore,

The number of shares customer will have = Shares purchased × (1 + Dividend declared)

= 1000 × ( 1 + 0.20)

= 1200 shares

Also,

Cost basis for the share = Selling price + Commission

= $44 + $1

= $45

Thus,

The adjusted cost basis = $45 ÷ 1.20

= $37.50 per share

Hence,

Option D) 1,200 shares held at a cost basis of $37.50 per share

3 0

3 years ago

The business judgment rule is important because it reflects the principle that ________, not _________, have the greatest latitu

Shalnov [3]

Answer: d. company directors; shareholders

Explanation: The conduction and management of a business usually involve making controversial decisions or taking actions that might put the business at risk. In a general sense, greater profits calls for greater risks. As such, the business judgement rule states that the board of directors should be allowed to make such decisions without fear of prosecution by shareholders who might object while acknowledging that managers are not capable of making optimal decisions at all times. The rule therefore aid in protecting a business's board of directors from slight legal allegations about the conduct of business. It is thus important because it reflects the principle that company directors, not shareholders, have the greatest latitude to run companies.

6 0

3 years ago