Answer:
Big Tommy Corporation
Profit and Loss for the year ended December 31
Sales 404,000
Cost of Goods Sold 279,000
Gross Profit 125,000
<em>Operating Expenses:</em>
Salaries and Wages Expense 58,000
Office Expenses 16,000
Travel Expenses 1,000 75,000
Operating Income: 50,000
Non-Operating Expenses
Income Tax Expense 15,000 15,000
Net Income 35,000
Explanation:
Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses
Operating income is Profit generated from Primary activities of the company
Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.
Answer:
The law of diminishing marginal utility.
Explanation:
Marginal utility is basically satisfaction derived from consuming an extra unit of product. According to the law of diminishing marginal utility as consumption increases the marginal utility derived from each additional unit decreases.
So when we consume 1 chips marginal utility is high, then as more is consumed we still get some positive utility out of it but at a decreasing rate now. At some point this utility equals zero after which it starts declining as more chips are consumed because it is not providing any satisfaction now. Therefore the chips should be consumed only up to the point where the marginal utility equal zero.
Answer:
The answer is Problem Collective.
Explanation:
Simply,
Problem collective, or a Collective action problem is a shared problem that can be cooperated and solved collectively by those who are affected by it but they fail to do so because of their "Conflicting Interests."
Conflicting interests means that the goals of each country/individual are different and in order to come to a productive conclusion, each nation/individual has to make sacrifices and changes to their objectives. But as it doesn't happen, the problem persists and gets worse eventually.
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300
Answer:
1. Cash received from customers = $89,908
2. Cash paid to suppliers = $71,972
Explanation:
Amount in millions
Net sales $91,628
Less: Increase in accounts receivable $(1,720)
Cash received from customers $89,908
Amount in millions
Cost of Goods sold $69,148
Add: Increase in inventory $870
Add: Decrease in accounts payable $ 1,954
Cash paid to suppliers $ 71,972
