$110,000 revenue will Saar recognise in 2021 under this arrangement
Solution:
First, in exchange for $100,000
Second, in exchange for $90,000
Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates , Whereas to calculate the revenue :
=
( 90,000)
So , 100,000 + 10,000 = 110,000
Answer:
$4.50
Explanation:
The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.
If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.
Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost
= $5.00 - $0.50
= $4.50
Answer:
1. 2. April 30 $11600
31-May $20100
2. April 30 $3,200
31-May $11,90
3. Profit April 0
May$800
June $2975
Explanation:
1) Calculation for Work in Process Inventory at
April 30 and 31-May
Work in Process Inventory at
April 30=7500+4100
Work in Process Inventory at
April 30=$11600
Work in Process Inventory at31-May =4100+6900+4700+4400
Work in Process Inventory at31-May= $20100
2) Calculation for Finished Goods Inventory at
April 30 and 31-May
Finished Goods Inventory at
April 30: $3,200
Finished Goods Inventory at 31-May =7500+4400
Finished Goods Inventory at 31-May= $11,900
3) Calculation for Gross Profit
Gross Profit April : 0
Gross Profit May =3200*25%
Gross Profit May=800
Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975
Answer:
b. Will always be higher than the dividend paid per share
Explanation:
A firm pays dividend to it's stockholders based upon it's earnings.
Earnings per share (EPS) is expressed as:
= 
Dividend payout ratio on the other hand is expressed as:
= EPS (1 - b)
wherein, b = retention ratio which denotes the percentage of earnings retained by a firm i.e not distributed as dividends.
Thus, a firm's earnings per share would always be higher than the dividend paid by it per share.