Answer:
When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:
- income statement: costs increase, decreasing profits
- balance sheet: assets and equity decrease
- cash flow statement: cash from operating activities increases
- owners' equity: decreases
Answer:
c. place----distribution
Explanation:
Since it is stated in the example that Sidney's customers expressed a wish for the scanners to be sold through retail alongside the online shop, it is clear that Sidney's company faces an issue regarding the distribution channels.
Of course, there is room for improvement, as they have already noted the customer requests for such a distribution channel and they have a steady demand.
To secure (and increase) their existing customer base from the competitor, Sydney's company has to put <u>place and distribution</u> of its products in the marketing focus.
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The net income is $15,750
Now the return on sales would equal to
= Net income ÷ net revenue
= $15,750 ÷ $62,950
= 25%
The given return on sales is 16% but the calculation says that the return on sales is 25% which reflects improvement in profitability
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below: