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densk [106]
2 years ago
10

Charley Davison Inc. produced 10,000 motorcycles last year and sold 9,000 of them each for $18,000/bike. Variable cost was $13,0

00/bike. Fixed cost was $25 million and it had no debt. Assume no profits tax. It paid out all profits as dividends. Which of the following are true?
a. Profits = $20 million
b. Profits = $25 milion
c. Piotits-513 million loss)
d. Change in cash= -S20 million
e. Change in cash= -$25 million
f. Change in cash =- $13 million
Business
1 answer:
Artist 52 [7]2 years ago
8 0

Answer:

a. Profits = $20 million

Explanation:

The computation is shown below

Total revenue is

= Number of bikes sold × sale price of a bike

= 9,000 × 18,000

= $162,000,000

Total costs = fixed costs + variable costs

where,  

Fixed costs = $25 million or $25,000,000.

And,

The Variable cost for the bikes sold is

= number of bikes sold × variable cost per bike

= 9000 × 13000

= $117,000,000

So, the total costs is

= $25,000,000 + $117,000,000

= $142,000,000

Now  

Profit = total revenue - total cost

= $162,000,000 - $142,000,000

= $20,000,000

Hence, the correct option is a.

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Answer:

It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.

Explanation:

Accounts payable refers to the amount of money a firm is owing its suppliers.

Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.

Since accounts payable is the amount of money a firm is owing its suppliers, a negative  a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.

Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

7 0
3 years ago
How did the paleolithic people came to know about fire<br><br>very short ​
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Answer:

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Explanation:

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Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

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Rent (Expense)     Dr $275

Cash (Asset)                        Cr $275

February 2 (Purchased fuel costing $490 on account for the next flight to Dallas.)

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Accountt Payable (Liability)                            Cr $490

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Cash (Asset)    Dr $820

Shipment (R)              Cr $820

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Cash (A)   Dr $910

Ticket (R)              Cr $910

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Advertisement (E)    Dr $175

Cash (A)                              Cr $175

February 14 (Paid pilot $2,300 in wages for flying in January (recorded as an expense in January))

Wages payable (L) Dr 2300

Cash (A)                                Cr 2300

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Cash (A)                            Dr 1600

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8 0
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When a student is given two seemingly different problems to solve, but the problems have the same underlying logical requirement
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7 0
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Learn more about tax at brainly.com/question/25783927

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