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grigory [225]
2 years ago
12

A manufacturer of disposable foam products entered into a written contract with a take-out restaurant to sell them 5,000 disposa

ble foam food containers per month at 5 cents per food container for a two-year period. Per the contract, payment of $250 was due once a month. The restaurant was also responsible for paying shipping charges, which were payable on a quarterly basis. Finally, the contract stated that if any of the containers were discovered to be damaged, they could be returned for a full refund. However, the contract was silent with regard to the return of any containers that were not damaged. In the last month of its contract with the manufacturer, the restaurant decided to switch to biodegradable, recycled cardboard food containers because its take-out customers complained about the harmful effects of disposable foam products on the environment. The restaurant asked the manufacturer not to ship the final shipment, but the manufacturer refused. The restaurant had not yet made the $250 payment for the final shipment of containers, but it did owe the manufacturer delivery charges for its final quarter. The restaurant returned all of the containers to the manufacturer. In addition, the restaurant sent an envelope with cash for the final shipping charges. In the envelope, the restaurant included a brief memo stating that the cash included was for payment in full, including all food containers and shipping charges. The manufacturer's accounting department received the envelope, read the memo, and deposited the cash. The manufacturer then sued the restaurant for the final payment of $250. Which of the following legal concepts would be the strongest argument against payment of $250?
A. Novation
B. Good-faith modification
C. Estoppel
D. Accord and satisfaction
Business
1 answer:
saveliy_v [14]2 years ago
3 0

Answer:

Option B

Explanation:

Since the contract did not mentioned any thing about the retuning of containers that were not defective, it becomes the obligation of the buyer to pay the final delivery amount on the basis of Good-faith modification.

Hence, option B is correct

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A company invests $40,000 in a project with the following net cash flows: Year 1: $3,000 Year 2: $8,000 Year 3: $14,000 Year 4:
hram777 [196]

Answer:

the payback period is 3.34 years

Explanation:

The computation of the payback period is as follow;

Given that

Year       Cash flows         Cumulative cash flows

0             -$40,000           $-40,000

1               $3,000              $3,000

2              $8,000              $11,000

3              $14,000             $25,000

4              $19,000             $44,000

5              $22,000            $66,000

6               $28,000           $94,000

Now the payback period is

= 3 years +  ($40,000 - $25,000) ÷ $44,000

= 3 years + 0.34

= 3.34 years

Hence, the payback period is 3.34 years

8 0
3 years ago
Porter Co. owned all of the voting common stock of Simi Corp. The corporations' balance sheets dated December 31, 2018, include
Katena32 [7]

Answer: $672,000

Explanation:

Porter sold land to Simi which means that their land balance reduces. Simi's however increases by the same amount. As Porter owned all the voting stock, the sale will be accounted for at the book value.

The Consolidated balance for land in 2020 will therefore be calculated as,

= (Porter land value - Sales price) + (Simi land value + Sales price)

= (416,000 - 65,000) + (256,000 + 65,000)

= 351,000 + 321,000

= $672,000

The book value of the Consolidated land will be $672,000 in 2020.

3 0
3 years ago
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers
Thepotemich [5.8K]

Answer:

A.

$168,000

B.

$21,300

Explanation:

A.

As per accounting equation

Assets = Liabilities + Equity

Equity = Assets - Liabilities

Placing values in the equation

Equity = ( Current assets + Net Fixed Assets ) - ( Current Liabilities + Long term debt )

Equity = ( $49,700 + 248,300 ) - ( 28,400 + 101,600)

Equity = $168,000

B.

Net Working capital is the net of current assets and current liabilities of the company.

Use following formula of net working capital

Net working capital = Current assets - current liabilities

Net working capital = $49,700 - 28,400

Net working capital = $21,300

5 0
3 years ago
What are items such as health insurance, life insurance, sick days, vacation time, and retirement savings called when provided b
SSSSS [86.1K]
I think it is B. Benefits
7 0
3 years ago
Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are pro
SCORPION-xisa [38]

Answer:

4,513 approx.

Explanation:

The computation of the minimum number of jars of silver polish is shown below:-

Sales revenue for one jar of silver polish    $5.60

Sales revenue for 1/4 pound of Grit 337     0.85

($3.40 ×  1 ÷ 4)

Incremental revenue from

further processing                                        $4.75

($5.60 - 0.85)

Incremental costs of further processing:

Processing costs                      $2.40

Selling costs                              $0.40          $2.80

Incremental contribution

margin from further

processing into silver polish

per jar                                                            $1.95

($4.75 - $2.80)

Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.

Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution

= $8,800 ÷ $1.95

= 4,513 approx.

8 0
3 years ago
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