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Lina20 [59]
3 years ago
12

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in

Business
1 answer:
ratelena [41]3 years ago
8 0

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction                                                        Remark

1.  Guarantee of supplier's debt                  (c) have no disclosure

2. Damages for disgruntled employee      (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz.  But with the legal case of a disgruntled employee, Cruz should disclose the information in a note.  It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

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Jack Spratt is the production manager for a manufacturing firm that produces wizzy-gadgets and other items. The annual demand fo
Assoli18 [71]

Answer:

200 units      

Explanation:

For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand is 1,600 units

Ordering cost per order is $25

And, the carrying cost or holding cost per unit per year is $2

Now placing these values to the above formula

So, the economic order quantity is

= \sqrt{\frac{2\times \text{1,600}\times \text{\$25}}{\text{\$2}}}

= 200 units          

8 0
3 years ago
I know this will be deleted but any on wanna play pad lethttps://pad let.com/ejkindred27
navik [9.2K]

Answer:

sure

Explanation:

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4 0
2 years ago
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On January 1, 2012, Uncle Company purchased 80 percent of Nephew Company’s capital stock for $672,000 in cash and other assets.
Inga [223]

Answer:

a. $51,840

b. $15,440

Explanation;

a. First find the excess fair-value allocation;

= Fair value of Nephew - Book Value

Fair Value = Uncle ownership + Non-controlling interest

= 672,000 + 168,000

= $840,000

Excess fair value = 840,000 - 806,000

= $34,000

Any excess fair-value allocations are amortized over a 10-year period;

= 34,000/10

= $3,400

The Income to be recognized will be reduced by this yearly amotization so the 2014 income recognized by Uncle would be;

= (Nephew income - Amortization) * Uncle ownership stake

= ( 68,200 - 3,400) * 0.8

= $51,840‬

b. Nephew Company also owns 30% of Uncle which means that they will receive 30% of Uncle dividends.

= 0.3 * 30,000

= $9,000

Added to their own income;

= 9,000 + 68,200

= $77,200

The Non-controlling interest owns 20% so the income they will recognise is;

= 0.2 * 132,100

= $15,440‬

6 0
3 years ago
________ appeals help con­sumers make purchase decisions by offering factual informa­tion that encourages consumers to evaluate
Helen [10]

Answer:

Informational appeals

Explanation:

Informational appeals are an effective way to show and explain your product or service to your potential customers. A company usually uses three types of informational appeal, or a mixture of the three:

  1. highlight your product's benefits or attributes
  2. make a product demonstration or comparison against its competitors
  3. use celebrity testimonials, or regular people testimonials (depends on the budget)
7 0
3 years ago
Spacelace is a company that provides plumbing solutions to luxury hotels and resorts. It enters into contracts with multinationa
Doss [256]

Answer:

Full oartnerships

Explanation:

Spacelace is a company that provides plumbing solutions to luxury hotels and resorts. It enters into contracts with multinational builders to take up all of their construction projects. The company has a customer support team that can work out of clients' offices when requirements arise. In the context of customer relationship management, Spacelace most likely establishes full oartnerships with its customers.

A partnership is a business arrangement by two or more parties to manage and operate a business and share its profits. A full Partnership Relationship is one that has a lasting connection between the customers and company. In the case of Spacelace they have established a lasting relationship with their customers.

6 0
3 years ago
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