Find a company that has dramatically turned around its fortunes and improved its performance.

China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt forgiveness was zero in 2012 (i

Pie

Answer:

The correct asnwer is $-214 billion.

Explanation:

A surplus occurs when an account exceeds the credit after having paid all its debts and obligations.

As the example says, assuming that China’s net debt forgiveness was zero in 2012, then the net balance of China's financial account balance would be -214 billion.

This means that China would be facing a deficit.

A defit means that more money comes out of our company's account than it enters.

Which causes China to have a negative balance account.

4 0

3 years ago

Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a pro

vlabodo [156]

Answer:

Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. Product cost can also be considered the cost of the labor required to deliver a service to a customer.

Examples of product costs are direct materials, direct labor, and allocated factory overhead which are directly attributable to the product.

period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A period cost is more closely associated with the passage of time than with a transnational event. ... Instead, it is typically included within the selling and administrative expenses section of the income statement.

Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities. Period costs are sometimes broken out into additional subcategories for selling activities and administrative activities

4 0

3 years ago

When a government collect more revenue in one year than it spends there is a budge

ss7ja [257]

there would be a budget surplus

8 0

3 years ago

PB13.

Nat2105 [25]

Answer:

Submarine Company

Income statement under absorption costing

$ $

Sales (1,800 units x $150) 270,000

Less: Full cost:

Direct material (2,000 units x $40) 80,000

Direct labour (2,000 units x $50) 100,000

Variable overhead (2,000 units x $10) 20,000

Fixed overhead (2,000 units x $20) 40,000

240,000

Less: Closing stock (200 units x $120) 24,000 216,000

Gross profit 54,000

Less: Selling and administrative expenses:

Variable selling and administrative 36,000

Fixed selling and administrative expenses 15,000 51,000

Net profit 3,000

Submarine Company

Income statement using marginal costing

$ $

Sales (1,800 units x $150) 270,000

Less: Variable costs:

Direct material (2,000 units x $40) 80,000

Direct labour (2,000 units x $50) 100,000

Variable overhead (2,000 units x $10) 20,000

200,000

Less: Closing stock (200 units x $100) 20,000

180,000

Add: Variable selling and administrative 36,000 216,000

Contribution 54,000

Less: Fixed cost:

Fixed production cost 40,000

Fixed selling and administrative expenses 15,000 55,000

Net loss  (1,000) 

Profit reconciliation statement

Closing stock Net profit/loss

$ $

Absorption costing 24,000 3,000

Less: Marginal costing 20,000 (1,000)

Difference 4,000   4,000

The difference of $4,000 in net profit is as a result of $4,000 difference in closing inventory.

Explanation:

In marginal costing, variable costs are deducted from sales in order to obtain the contribution margin. Net profit is calculated by deducting fixed costs from the contribution margin. Closing stock is valued at marginal cost per unit in marginal costing. Closing stock is the difference between production units and sales units. Marginal cost is the sum total of all variable costs.

In absorption costing, full costs are deducted from sales in order to obtain the gross profit. Net profit is the difference between gross profit and selling and administrative expenses. Closing stock is valued at full cost in absorption costing. Full cost is the aggregate of variable costs per unit and fixed costs per unit.

3 0

3 years ago

The board of directors of Capstone Inc. declared a $0.80 per share cash dividend on its $1 par common stock. On the date of decl

erik [133]

Answer: Please see below for answer

Explanation: To calculate dividends, we use the formulae

Dividend =(Number of shares issued -treasury stock held) x Dividend per share =

where number of shares issued = $18,000

treasury stock held = 6000 shares

Imputing the values in formulae becomes

($18,000 - $6000) x 0.80 = 12,000 x 0.80 = $9,600

Journal entry to record declaration of dividends of Capstone Inc.

Account Debit Credit

Dividend $9,600

Dividend payable $9,600

6 0

3 years ago