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2 years ago

The income statement for the month of June, 2018 of Sarasota Enterprises contains the following information:

Business

1 answer:

BlackZzzverrR [31]2 years ago

8 0

Answer:

b) credit to Rent Expense for $1530

Explanation:

Date Accounts and Explanation Debit Credit

Income Summary $5,550

Salaries & Wages Expense $2,900

Rent Expense $1,530

Advertising Expense $740

Supplies Expense $270

Insurance Expense $110

(To Close the expense accounts)

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How is a significant amount of consignment inventory reported in the balance sheet? a)The inventory is reported separately on th

Georgia [21]

Answer: Option A

Explanation: Consignment refers to a business arrangement under which an an individual or an entity sends its goods to some other entity ,acting as an agent, to sell their goods. The sender is called the consignor and that agent acting on behalf is the consignee.

The profit from the sale goes to the consignor while the consignee gets other benefits like commission.

Thus, the goods actually belongs to the consignor therefore the inventory of those goods will be shown in the consignors balance sheet.

4 0

3 years ago

If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 110 comma 000

Reptile [31]

Answer:

Option b has the highest expected monetary value (EMV)

Explanation:

For Option a:

At probability 0.65: At probability 0.35

Units=110,000 Units=65,000

Amount=$580 each Amount=$580

EMV/Total Sales=0.65(110,000*580)+0.35(65,000*580)

EMV/Total Sales=$54,665,000

For Option b:

At probability 0.62: At probability 0.38

Units=85,000 Units=60,000

Amount=$740 each Amount=$740

EMV/Total Sales=0.62(85,000*740)+0.38(60,000*740)

EMV/Total Sales=$55,870,000

So Option B has the highest expected monetary value (EMV).

4 0

2 years ago

Heavy dream is best. <br><br> agree <br> or <br> no agree

Bad White [126]

Answer:

Agree

Explanation:

3 0

3 years ago

Read 2 more answers

Pace Co. borrowed $10,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-

mars1129 [50]

Answer:

Explanation:

Amount of interest need to paid is 30 day month

= 10000×(1.075)×30/360 = 60.42

Simple interest formula is

Interest for year is = 10000×7.5% = 750

Per month is = 750×30/360 = 60.42

8 0

2 years ago

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

OverLord2011 [107]

Answer:

Equal to

Explanation:

Financial theory assumes that financial markets are efficient and that there is no information failure in conducting financial transactions. However, this is an assumption and there could, in some instances, be asymmetric information in the form of adverse selection and moral hazards. For example, if managers of a corporation know how well or how poorly their business is doing than stockholders (as organizational performance determines the price of a security), then there would be an information failure or informational inefficency. Also, a potential investor who cannot distinguish between a firm whose security has a high potential for profit and low risks compared to that with a low potential for profit and high risk will be willing to pay a price that lies between the value of stock from bad firms and the value of stock from good firms. This will not augur well for good firms as their stock is underpriced and they will be reluctant to sell.

When the financial market is efficient, investors of stock would be able to earn supernormal returns on their investments. It is therefore neccessary that the price of a corporation's common stock should be equal to the present value estimate of the firm's expected cash flows discounted by it appropriate rate of return.

6 0

3 years ago