Given the scenario described herein, one good solution for the business to invest in a new product when it is short on cash is <u>B. Liquidate some inventory to increase cash flow.</u>
<h3>What is Cash?</h3>
In accounting, cash includes bills, coins, bank balances, money orders, and checks. Cash is the first item in most balance sheets, especially if the company is reporting liquidity. Cash happens to be the most liquid of all assets. Cash also includes cash equivalents, which are assets readily converted into cash.
Thus, the company does not need to raise prices, fire employees, or cut wages to raise cash. It can liquidate some inventory at lower prices if necessary.
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Answer:
Finished goods = $85,800
Ending inventory = $5,280
Explanation:
beginning WIP 400 units
$11,080
8000 units started
$80,000
units finished and transferred out = 8,000 + 400 - 600 = 7,800
ending inventory 600 units
80% complete
equivalent units = 7,800 + (600 x 80%) = 8,280
total costs = $91,080
cost per equivalent unit = $91,080 / 8,280 = $11
Finished goods = 7,800 x $11 = $85,800
Ending inventory = 480 x $11 = $5,280
If the government subsidizes colleges and sets the subsidy so that the efficient number of students enrolled The subsidy is $ 1000 per student and 6 million students enroll.The cost to the taxpayers is $ 6 billion.
A subsidy or government incentive is a form of financial aid or assistance provided to a sector of the economy (business or individual), generally for the purpose of promoting economic and social policies. [1] The term subsidy generally comes from governments but can refer to any kind of support, including NGOs and implied subsidies. Subsidies come in many forms, including direct (cash grants, interest-free loans) and indirect (tax relief, insurance, soft loans, accelerated depreciation, rent refunds)
They may be broad or narrow, legal or illegal, ethical or unethical. The most common form of subsidy is a producer or consumer subsidy. Producer/production subsidies ensure an advantage for producers by providing either market price support, direct support, or payments for factors of production[3]. Consumer/consumption subsidies generally reduce the price of goods and services to consumers. For example, in the United States, it was cheaper to buy gasoline than bottled water
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Answer:
a) Disclose in the notes
b) no Disclosure
c) Record a liability
Explanation:
There are three scenarios to be considered
1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable
First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>
2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.
This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.
3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.
The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability
