Answer:
B. The company's brand equity
Explanation:
Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery. Examples of intangible assets include patent brand names, trademarks, or and copyright.
Intangible assets have a use-life of more than one year. They can be created or acquired, just like tangible assets. From the list in the case, The company's cash reserves, company's plant and equipment, and company headquarters are tangible assets because they have a physical presence.
Do not record transactions that do not affect inventory quality. A recorded inventory transaction has actually taken place.
Records of inventory purchases made during the accounting period. The purchase account is increased by direct debit. The manufacturing costs of the goods sold are overestimated by the same amount. An overstatement of cost of goods sold will result in an understatement of net income and retained earnings by the original margin of error.
If the auditor is dissatisfied with the accuracy of the closing balance sheet and may be materially increase.
Inventory write-downs affect both the income statement and the balance sheet. Write-offs are treated as expenses. This means your net income and tax liability will be reduced. Therefore, a decrease in net income will reduce a company's retained earnings and reduce shareholders' equity on the balance sheet.
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Answer:
fall, rise
Explanation:
US goods will become less expensive
Answer: $7,500
Explanation:
In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.
Starting off we will calculate the amount of savings they will make by using the new machine,
= $12,000 x 5 years
= $60,000
Calculating the Incremental income therefore we have,
= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)
= $7,500
The incremental income of buying the new machine is $7,500.
If you need any clarification do comment.
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
