Answer:
Effect on income= $0
Explanation:
<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
Answer:
$ 170,000
Explanation:
In year 2 salaries payable begins with a balance of $ 20,000 and increases by $ 180,000 due to the salaries earned by employees, which adds up $ 200,000. In order to know what was actually the cash paid to employees in Year 2, we must subtract from this amount what is pending at closing, that is, salaries payable at the end of year 2 ($ 30,000). This gives us $ 170,000
Schematically:
(see attached image)
It may seem that franchise has many benefits since it allows for a person to open and operate a business without much knowledge of how to run a business and generally franchises are well advertised so not much marketing costs are needed, however negative impacts are much more, since you need to pay lifetime percentages for sales and operating under franchise as well as there is no room for creativity and too much dependence on a big business. Also the funds needed to open a franchise are much higher than same business but operating independently. So negative side is prevailing.
D. Should be the answer, I am hoping that I am correct but hope you pass
Answer:
false
Explanation:
To measure liquidity, accountants use liquidity ratio, quick ratio, or acidity test is the most common. Liquidity measures the ability of a company to meet its current liabilities as they become due. Current liabilities are paid for using current assets. A firm is liquid if its quick ratio should be at least 1.
Dividing quick assets by current liabilities gives a quick ratio. Quick asset refers to items that can be converted to cash with 90 days. They include cash and cash equivalents, current receivables, and short-term investments. Inventory is not considered in the calculations of quick ratio as it has not yet been sold. They are no guarantee that it will be sold and paid for in 90 days. Firms with the same level of current assets and current liabilities have the same level of liquidity.
