1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gnoma [55]
3 years ago
7

Powell Company had the following errors over the last two years: 2019: Ending inventory was overstated by $58,500 while deprecia

tion expense was overstated by $24,800. 2020: Ending inventory was understated by $10,500 while depreciation expense was understated by $4,600. By how much should retained earnings be adjusted on January 1, 2021? (Ignore taxes)
Business
1 answer:
erastovalidia [21]3 years ago
7 0

Answer:

-$27,800

Explanation:

When the inventory closing balance is overstated, the cost of goods sold is understated and as such the net income which is posted to the retained earnings will be overstated . When an expense is overstated, the net income is understated and so is the retained earnings.

The net overstatement of inventory across the two periods

= $58,500 - $10,500

= $48,000

The net overstatement of depreciation across the two periods

= $24,800 - $4,600

= $20,200

Adjustments to retained earnings

= - $48,000 + $20,200

= -$27,800

You might be interested in
MIB William Corp. has $875,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $
vovikov84 [41]

Answer:

A profit Maring of 17.16% would be needed to achieve the target ROE of 20% if everything else holds constant

Explanation:

Return on Equity is the percent of net income achieve per dollar of equity

It is used to check the management of capital investment. (We give you this much, you generate that)

\frac{Net Income}{Average Equity} = ROE

Where Average Equity:

$$(Beginning Equity + Ending Equity) / 2

In this case we have no information about beginning or ending so we go with the vlue provided for Equity: $875,000

Now we can see how much the net income needs to be to achieve 20% ROE

\frac{Net Income}{875,000} = 0.20

Net Income = 175,000

Now, which is the profit margin that generates this net income:

\frac{Net Income}{Sales Revenue} = $Profit Margin

This represents the percentage of sales which turned into profits. It can be interpreted as:

cents of net income per dollar of sale.

Having our target net income, and holding the sales constant we need a profit margin of:

175,000/1,020,000 = 0.171568

A profit Maring of 17.16% would be needed to achieve the target ROE of 20%

7 0
3 years ago
Choose the correct statement(s) below regarding A. the direct write-off method for calculating bad debt expense. B. It is not no
masha68 [24]

Answer: The correct answer is "B, C, and D".

Explanation: All of these are corrects statements regarding the direct write-off method for calculating bad debt expense.

  • This method is generally not consistent with GAAP and accrual accounting.
  • Using this method generally causes an over estimate of accounts receivable in the company's balance sheet.
  • One of the peculiarities of this method is that it only recognizes the expense for bad debts when a specific account is determined uncollectible.
7 0
4 years ago
A new associate recently joined your team. He is struggling with the feedback-rich environment in which team members are encoura
Temka [501]

Answer:

(D) Provide this individual with feedback more often. Debrief with him to ensure that the feedback is being accepted.

Explanation:

The reason for choosing this option is to help him learn and adjust to the feedback rich environment. If he is not hinted and left to adjust, he might not ever get used to the new environment and will feel that he can be an exception.

By giving him feedback more often and briefing him after it, will make sure that he is not offended and that he understands the intent and focus of the feedback which is purely professional.

6 0
4 years ago
Business applications have moved from transaction processing and monitoring to other activities. Which of the following is NOT o
AVprozaik [17]

Answer: <em>Option (C) is correct.</em>

Explanation:

In the 21st century, business applications have come a long way. It has moved from transaction processing and monitoring to problem analysis, solution applications and other activities. Data monitoring isn't one of these activities. Since data monitoring specifically concentrates on ardently analyzing and evaluating data and also it's quality in order to make sure that it lies within the domain of the purpose.

5 0
3 years ago
"what is south korea's opportunity cost of producing one digital camera"
dalvyx [7]
"what is south korea's opportunity cost of producing one digital camera?"

A: 20lbs of wheat.
7 0
3 years ago
Other questions:
  • Desires to maintain a capital structure of 80% equity and 20% debt. They currently have an effective tax rate of 30%. The compan
    6·2 answers
  • Advice Florence and he team how they can convince the staff using John Kotter's theory to lead change
    14·1 answer
  • Suppose small business owners decide to spend less. how will this affect an economy? it will cause prices for many goods to incr
    12·1 answer
  • Business documents can include all of the following except ____.
    5·1 answer
  • Net sales for the year were $1,100,000 and cost of goods sold was $781,000 for the company�s existing products. A new product is
    7·1 answer
  • The risk-free rate of interest, kRF, is 6 percent. The overall stock market has an expected return of 12 percent. Nutshell, Inc.
    6·1 answer
  • Based on your readings and any other research, why do you think that women are especially affected by the "glass ceiling" at wor
    10·2 answers
  • Mary reports that, on a productive week, she can develop the system requirements in four days, but during a normal week it shoul
    15·1 answer
  • Lincoln Park Co. has a bond outstanding with a coupon rate of 5.76 percent and semiannual payments. The yield to maturity is 6.3
    6·1 answer
  • What is an economic indicator and why is it important? Use at least two complete sentences to provide your response.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!