Answer:
a.Relaxant’s shareholders (the ex-partners) will now be exposed to less liability.
Explanation:
Legally, a corporation is a distinct entity separate from its owners. It has commercial rights to transact businesses, enter into contracts, and own properties. A corporation is a legal person and is subject to taxation; it can sue or be sued.
One distinctive aspect of a corporation is that its owners have limited liability to the debts of the business. If the company is unable to meet its obligations, the personal properties of owners cannot be attached to the debts. The owners of Relaxant Inc. will be exposed to less liability when they are shareholders as compared to when they were partners. The liability of an individual shareholder is limited to the amount of their capital contribution
Answer:
26.91%
Explanation:
PMT = 10%*1000 = 100
FV = 1000
N = 3
I/Y = 6%
<em>Using Ms Excel PV function</em>
Price of the bond on sale = PV(PMT, FV, N. I/Y)
Price of the bond on sale = $1,106.92
Realized rate of return = (Sale price - Initial price+ Coupon)/ Initial price
Realized rate of return = ($1106.92 - $951 + $100) / $951
Realized rate of return = 0.269106204
Realized rate of return = 26.91%
Answer:
26250
Explanation:
I subtracted the expenses from the revenue to get this.
I hope this is correct, and as always, I am joyous to assist anyone at any time.
Answer:
$32,000
Explanation:
Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.
Cost of goods sold = Sales value - Gross Profit
Gross profit = Sales value - Direct costs - overhead costs
Gross profit per unit = $120 - ($50 + $ 20 + $10)
Gross profit per unit = $40 per unit
Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000
Budgeted sales value = Selling price per unit × Budgeted sales units
= $120 × 400 chairs = $48000
Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value
= $48000 - $16000 = $32000
<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.