Answer:
Report a prior period adjustment decreasing retained earnings by $1,365,000.
Explanation:
Going by the question we can derive that $2,100,000 is the prior period's warranty. Consequently, it will be charged to the current year's earnings following the deduction of tax, 35%.
(2,100,000 *65) /100 = $1,365,000
This above calculation is so because Under the accrual basis of accounting...operating expense are reported on the income statement in the particular period when they took place or when they expire
Answer:
b. Only Emerald Corporation's current ratio will be increased.
Explanation:
Given that
Emerald current ratio is
= 0.5 i.e. = 0.5 ÷ 1
now in case when the current liability is doubles , so the current assets is
= 0.5 + 1 = 1.5
And, the cuurrent liabilities is
= 1 + 1
= 2
so new ratio is
= 1.5 ÷ 2
= 0.75
Now
Ruby current ratio is
= 1.5
i.e. = 1.5 ÷ 1
Now in case when the current liability is doubled,
the current assets is
= 1.5 + 1
= 2.5
And, current liabilities is
= 1 + 1
= 2
Now new ratio is
= 2.5 ÷ 2
= 1.25
Therefore the emerald current ratio is rised from 0.5 to 0.75
And, the Ruby's ratio has decline from 1.5 to 1.25
Answer:
<u><em>FALSE</em></u>
Explanation:
Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a<em> company's sales </em>by its <em>total assets.</em>
<em />
To increase sales, management should <em>continue</em> to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.
Answer:
The answers are:
- automobile insurers
- life insurance companies
- a life insurance policy
- longer
- longer-term
Explanation:
When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.
On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.
Answer:
Amount received = 217,043.56 (Approx)
Explanation:
Given:
Monthly deposit = $400
Interest rate = 3.2% / 12 = 0.002667 per month
Number of year = 63 year - 35 year = 28 year
Number of period = 28 × 12 month = 336 month
Computation:
![Amount \ received = PMT[\frac{(1+r)^n-1}{r} ]\\\\Amount \ received = 400[\frac{(1+0.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{(1.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{2.44713794-1}{0.002667} ]\\\\Amount \ received =400[\frac{1.44713794}{0.002667} ]\\\\Amount \ received =400[542.608901]\\\\Amount \ received =217,043.56\\\\](https://tex.z-dn.net/?f=Amount%20%5C%20received%20%3D%20PMT%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D%20400%5B%5Cfrac%7B%281%2B0.002667%29%5E%7B336%7D-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B%281.002667%29%5E%7B336%7D-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B2.44713794-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B1.44713794%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B542.608901%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D217%2C043.56%5C%5C%5C%5C)
Amount received = 217,043.56 (Approx)
