Answer:
1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000, it is probable that Huprey will lose the case.
2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.
3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case.
Explanation:
Contingent liabilities must be recorded only when it is probable that the liability will happen and you can estimate the associated costs.
When contingent liabilities are only reasonably possible or you cannot estimate the amount, they must be included in the footnotes of the financial statements.
When contingent liabilities are not reasonably possible, nothing needs to be disclosed.
Answer:
b) $20,000
Explanation:
Retained Earning ending balance of 2015 = Opening balance of 2015 + Profit for the year 2015 - Dividend Paid during 2015
$400,000 = $320,000 + $100,000 - Dividend Paid during 2015
$400,000 = $420,000 - Dividend Paid during 2015
Dividend Paid during 2015 = $420,000 - $400,000
Dividend Paid during 2015 = $20,000
The firm's dividend payment for 2015 is $20,000.
Answer:
Break-even point (dollars)= $15,000
Explanation:
Giving the following information:
The selling price is $10 each and the variable costs are $8.
Fixed costs are $3,000.
<u>To calculate the break-even point in dollars, we need to use the following formula:</u>
<u></u>
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 3,000 / [(10 - 8)/10]
Break-even point (dollars)= $15,000
Answer:
$173,050
Explanation:
Expected revenue = 0.3*$252,000 + 0.2*$61,000 + 0.5*$170,500
Expected revenue = $75600 + $12200 + $85250
Expected revenue = $173,050
So, the expected annual revenue for the store is $173,050