Answer: A firm should not continue production when its MR is lower than its AVC.
Explanation:
The goal of every firm is to minimize cost and also maximize profits and therefore the firm will operate at the output level where the marginal revenue and the marginal cost equates.
A firm should not continue production when its MR is lower than its AVC. Here, the firm will incur a higher loss during production as producing will not offset the variable cost. Therefore, it's better to shut down.
The postdated checks are considered to be an accounts receivable for accounting purpose.
<h3>What is a
postdated checks?</h3>
These are checks that is expected to make a payment to be processed on a specified date in the future.
However, in accounting, the postdated checks are considered to be an accounts receivable by a firm for accounting purpose.
Read more about postdated checks
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Answer:
1.Dr Cash 25,000
Cr Sales revenue 25,000
2. Dr Warranty expense 2,500
Cr Warranty liability 2,500
3.Journal entry for actual warranty expense
Dr Warranty liability 500
Cr Cash 500
Explanation:
Preparation of Dynamo's journal entries related to the sales and warranty in Year 1.
1.Dr Cash 25,000
Cr Sales revenue 25,000
(50*500)
2. Dr Warranty expense 2,500
Cr Warranty liability 2,500
3. Dr Warranty liability 500
Cr Cash 500
Answer: $952500
Explanation: targeted equity ratio is 65% = 0.65
Capital budget = $850000
Dividend = net income - (target equity ratio × total budget)
400000 = N - (0.65 × 850000)
Make N the subject of formula
Net income N = $952,500
Answer:
Answer is $15,000
$6,000 share of ordinary income plus $9,000 gain for a $50,000 distribution in excess of her $41,000 stock basis.
