Answer: A. is required to draw up a petition listing all assets and liabilities.
Explanation:
Bankruptcy simply refers to the legal whereby an economic entity is unable to repay their outstanding debts. In this case, the individual or business will need to sell its remaining assets in order to pay the liabilities.
Due to the above reason, then the debtor will be required by the government to list all of their assets and the liabilities that it owns and this will be used in determining whether the obligation has been fulfilled or not.
Answer:
Contribution margin= $169
Explanation:
<u>First, we need to calculate the total unitary variable cost:</u>
total unitary variable cost= direct material + direct labor + variable overhead + variable selling expense
total unitary variable cost= 38 + 1 + 8 + 4
total unitary variable cost= $51
<u>Now, the contribution margin:</u>
Contribution margin= 220 - 51
Contribution margin= $169
Answer:
$2,600
Explanation:
As we know that the inventory should be recorded at a cost or market value which ever is lower
In the given case,
The cost is
= 200 units ×$16 per unit
= $3,200
And, the market value is
= 200 units × $13 per unit
= $2,600
So as we can see that the lower value is $2,600 and the same is to be reported on the balance sheet
Answer:
(B) The superstores’ heavy advertising of their low prices has forced prices down throughout the retail market for office supplies.
Explanation:
If the superstores have the financial means to produce heavy advertising of their low prices, this advertisements will reach a wide group of customers, who will now have lower price expectations for the market of office supplies, whether these are offered by large superstores, or by small retail stores.
Because small retailers likely do not have the economies of scale to allow for prices as low as the large superstores, they have a high probability of being taken out of business.
Answer:
Sales revenues= $1,317,150
Explanation:
Giving the following information:
Vaughn estimates it will sell 7000 units during the first quarter of 2019 with a 12% increase in sales each quarter.
Selling price= $150
<u>First, we need to calculate the number of units to be sold in the third quarter</u>:
Sale in units= 7,000*1.12^2= 8,781
<u>Now, sales revenues:</u>
Sales revenues= 8,781*150
Sales revenues= $1,317,150
