Answer:
Consider the following explanation
Explanation:
Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.
Inventories held for sale in the normal course of business are classified in the balance sheet as Current liabilities.
<h3>What is meant by current liability?</h3>
This is the term that is used to refer to all of the financial obligations that the customer would have to have due to themselves in the long run. These are the liabilities that are known to be dropped in the current assets and would then be settled in the course of a year.
Hence we can say that Inventories held for sale in the normal course of business are classified in the balance sheet as Current liabilities.
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Answer:
A. Dividends 11,700 Dividends Payable 11,700
Explanation:
The journal entry to record the dividend declared is shown below:
Dividend A/c Dr $11,700
To Dividend payable $11,700
(Being the dividend is declared)
The computation is shown below:
= (Number of shares issued - treasury stock) × cash dividend per share
= (20,000 shares - 7,000 shares) × $0.90
= 13,000 shares × $0.90
= $11,700
Answer:
I can borrow $24,000
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
The amount of loan can be calculated as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Amount of Loan = $632 x [ ( 1- ( 1 + 1% )^-48 ) / 1% ]
Amount of Loan = $632 x [ ( 1- ( 1.01 )^-48 ) / 0.01 ]
Amount of Loan = $24,000
r = 7.17%
Interest rate is 7.17%
Answer:
Instructions are below.
Explanation:
Giving the following information:
Fixed costs= $240,000
Unitary variable cost= $1.97
Selling price per unit= $4.97.
First, we need to calculate the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 240,000 / (4.97 - 1.97)
Break-even point in units= 80,000 units
<u>The break-even point analysis provides information regarding the number of units to be sold to cover for the fixed and variable costs.</u>
If the forecasted sales are 120,000, this means that the company will cover costs and make a profit. The margin of safety is 40,000 units.
