Answer:
1. Prepare an income statement for Allstar for the past month.
The income statement is given below.
Sales $ 410,000
Commission Cost ($ 50,000)
Technology Cost ($ 75,000)
R/D Cost* ($ 200,000)
Selling expenses ($ 10,000)
Admin expenses ($ 35,000)
Net profit $ 40,000
* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).
2. Briefly explain why Allstar's income statement has no line for cost of goods sold.
As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.
Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
Answer:
you should have 2 apple trees
Explanation:
<u>you can have</u> <u>savings</u> <u>costs</u> <u>net payoff</u>
no tree at all 0 0 0
1 apple tree $130 $100 $30
1 orange tree $90 $70 $20
1 pear tree $145 $120 $25
<u>2 apple trees $260 $200 $60</u>
2 orange trees $180 $140 $40
2 pear trees $290 $240 $50
1 apple + 1 pear tree $275 $220 $55
1 apple + 1 orange tree $220 $170 $50
1 orange + 1 pear tree $235 $190 $45
Answer:
d. Market research
Explanation:
Market research -
It is one of the important step for the organisation ,
In this process , the information and data is collected , analysed and interpreted with respect to the customers reviews or feedback .
This step helps to enhance the production , sale and marketing of the goods and services the company produces , which in turn increases the profit earned by the company .
Hence , from the given information of the question ,
The correct option is d. Market research .
Answer:
C) Debit Office supplies, $500; credit Accounts payable, $500
Explanation:
The journal entry is as follows:
Office supplies A/c Dr $500
To Account payable A/c $500
(Being the office supplies are purchase on credit is recorded)
Since the office supplies are purchased so we debited the office supplies that increase the assets and credited the account payable as it purchase on credit basis plus the liabilities are also increased
