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Zigmanuir [339]
3 years ago
10

During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, yo

u come across several items needing further consideration. Currently, net income is $87,000.
a. An insurance policy covering 12 months was purchased on October 1, 2018, for $16,200. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2018.
b. During 2018, the company received a $2,700 cash advance from a customer for services to be performed in 2019. The $2,700 was incorrectly credited to Service Revenue.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $2,100 were on hand at December 31, 2018.
d. Trojan borrowed $57,000 from a local bank on September 1, 2018. Principal and interest at 9% will be paid on August 31, 2019. No accrual was made for interest in 2018.
Business
1 answer:
siniylev [52]3 years ago
4 0

Answer:

$76,440

Explanation:

Calculation to determine the proper amount of net income as of December 31, 2018

Net income $87,000

Less Adjusted for insurance ($4,050)

($16,200*3/12)

Less Adjusted for deferred income ($2,700)

Less Adjusted for supplies ($2,100)

Less Adjusted for interest ($1,710)

($57,000*9%*4/12)

Net income (Adjusted) $76,440

Therefore The the proper amount of net income as of December 31, 2018 will be $76,440

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baherus [9]

<u>Answer:</u> Option C

<u>Explanation:</u>

International expansion is a strategy where the organizations enter into global markets for the benefit of making quick profits and business development in new segments. Omega Inc can fix higher prices when their products provide a greater value to the customers in that foreign market.

In the other given situations the company cannot fix a higher price for the fitness products in foreign market. Other situations given are easily available products, low expected sales volume and low price of the competitors.

7 0
3 years ago
You talk to Kenji, the Japanese manager of the Swedish plant. He says the workers are uncooperative and do not carry out the ins
Oliga [24]

Answer:

Explanation: Cultural differences can affect the workplace and how employees cooperate. In a business it is crucial to determine employers and employees' cultural differences to decipher how these differences can be incorporated into the work place so that everyone can operate cohesively.

So it is important to take the best choice and investigate this situation further. Before forming an opinion, make sure you have viewed everyone's perspective. Try and figure out why the workers are disobeying Kenji's orders, but also determine why Kenji has such a dominating and unreadable personality.

It is important to note that Sweden is a low - context culture. This means that Swedish people communicate information in explicit and direct ways. Facial expressions, gesture and other forms of non verbal communication aren't heavily used or taken into consideration when communicating, and people often communicate verbally only, to get taken their points across. Japan however is a high context culture and relies on non - verbal cues such as traditions and context to communicate information.

Because of the different cultural contrasts Kenji should consider providing more clearer, more verbal (and less ambiguous) instructions to his employees so that communication is better understood by all the parties involved.

4 0
3 years ago
If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc
Kitty [74]

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
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3 years ago
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of ch
Virty [35]

Answer:

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Explanation:

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This implies that, as price level falls (from 9 to 8 here) ,the value of money ie purchasing power increases (from 8 to 9)

8 0
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Learn more about fixed costs here:

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6 0
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