Answer:
The omission of this entry understated accrued liabilites. given that the related inventory was sold in year 1, it aslo overstated net income and retained earnings by understating cost of goods sold, the same effects would occur if the insurance costs were chargeable to expense as a period cost
Explanation:
Rules specify that contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. This means that a loss would be recorded (debit) and a liability established (credit) in advance of the settlement.
Answer:
Increase by more than $500 billion.
Explanation:
Use the below formula to find the multiplier effect.
Multiplier = 1 / (1-MPC)
Multiplier = 1 / (1 - 0.8)
Multiplier = 1 / 0.2
Mulitiplier = 5
GDP increase by = 5 x 100
GDP increases by = $500
Since the multiplier is five and the increase in transfer by $100 that will have multiplier effect of $500. Thus option "a" is correct.
I really want to know were the question is in this paragraph
Answer:
$30,947.92
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor + - initial investment
where,
The Initial investment is $74,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 9 years at 8%
= $16,800 × 6.2469
= $104,947.92
Refer to the PVIFA table
So, the net present value is
= $104,947.92 - $74,000
= $30,947.92
Answer:
The answers are:
A) Net profit margin rate = 16.3%
B) Gross profit margin rate = 52.4%
Explanation:
A) Net profit margin rate can be calculated using the following equation:
- Net profit margin rate = (net income / net sales) x 100
Net profit margin rate = ($41,800 / $256,800) x 100
Net profit margin rate = 16.3%
B) Gross profit margin rate can be calculated using the following equation:
- Gross profit margin rate = [(net sales - COGS) / net sales] x 100
Gross profit margin rate = [($256,800 - $122,300) / $256,800] x 100
Gross profit margin rate = 52.4%
