Answer:
Prom Night Formal Wear
Balance sheet
Stockholders' equity section
December 31, 2018
PARTICULAR AMOUNT
Stockholders equity
Common stock $1,900,000
Additional Paid-in capital $23,000,000
Total Paid-Up Capital $24,900,000
Retained earning $16,000,000
Treasury stock ($1,850,000)
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Total Stockholder equity <u> $39,050,000</u>
Answer:
✔️Demand Pull Inflation:
1. Too much money chasing too few goods
2. Stiff competition among consumers
✔️Cash Pull Inflation:
1. Increase in cost of production
2. Decrease in supply of goods and services
3. Aim of sellers is to maximize profit
Explanation:
Demand pull inflation is often caused by the increase in the aggregate demand of outputs than an economy can produce as a result of increased government spending, expanding economy and so on.
On the other hand, cash pull inflation is caused by the decrease in aggregate supply of goods and supply as result of increased cost of the factors of production.
Thus, let's match each description to the types of inflation they belong to:
✔️Demand Pull Inflation:
1. Too much money chasing too few goods (excess demand as a result of expanding economy)
2. Stiff competition among consumers (businesses, households, governments and foreign buyers bid prices up and compete to purchase the limited available goods and services)
✔️Cash Pull Inflation:
1. Increase in cost of production (this pushes the cost of goods and services up)
2. Decrease in supply of goods and services (aggregate supply decreases)
3. Aim of sellers is to maximize profit (as production cost increase, sellers would have to increase the price of goods and services in order not to run at a loss).
Answer: $420,000 of expense in the income statement as an ordinary item. Douglas’ accounts for this change in estimate in the period of change by reporting the newly calculated amount of bad debt expense as an ordinary item of income. Changes in estimate are not considered an extraordinary item, an error correction, or a change in accounting principle.
Remainder Part of Question:
Cash Flow
Initial Costs $365,000
Annual Benefits $90,000
Operation and Maintenance $15,000
Salvage Value $25,000
Lifetime in years 10 Years
Answer:
As the IRR > MARR, hence the investment is financially viable.
Explanation:
Find the attachment below:
Answer:
Explanation:
In this question ,we take the difference of the per bond value based on the year. The computation is shown below:
During 2015 to During 2017:
= Number of bonds purchased × (December 31, 2017 value - 2015 value)
= 10,000 × ($92 - $61)
= 10,000 × $31
= $310,000
During 2018:
= Number of bonds purchased × (December 31, 2018 value - 2017 value)
= 10,000 × ($146- $92)
= 10,000 × $54
= $540,000
So, the total amount would be
= $310,000 + $540,000
= $850,000
This amount which reflect in the income statement as a realized gain
