Answer:
Omar's plan of retaining earnings can work depending on the liquidity preference of the shareholders.
If the shareholders have interest in short-term liquidity benefit (i.e. dividend), then his plans might be frustrated and vice versa.
Answer:
B. business format franchise
Explanation:
Under the business format model, the franchisee adopts the entire business operating systems of the franchisor. It means that the franchisee uses the franchisor's trademark, plans, and procedures. Goods and services offered by the franchisee will be identical and will bear the same prices as those of the franchisor.
Joseph plans to operate a business format model of a franchise. The franchisee will have to meet Joseph's standards of operations. For that to happen, Joseph must provide the following.
- Initial training
- Standardize build-out plans
- Operations manuals
- Continuous support
- Point-of-sale system education
- Key functionalities
Joseph has a responsibility to ensure the franchisee adhere to the standards agreement. It means he will have a supervisory role in management for the franchisee.
In return, Joseph will be earning commissions from each franchisee based on the income of each of them.
Answer:
1. There are 2,600 units in ending inventory.
2. Costs per unit under absorption costing $ 123
3.Value of ending inventory $ 319,800
Explanation:
Calculation of Ending inventory units.
Ending Inventory Units : Opening Units + Units produced - units sold
300 + 15,000 - 12700 = 2,600 units
Calculation of per unit cost under absorption costing
Under absorption costing, direct manufacturing costs as well as indirect factory overheads are considered.
Per units costs
Direct Materials $ 20
Direct Labour $ 60
Variable overhead $ 13
Fixed Overhead $ 30
Total costs per unit $ 123 under absorption costing
Calculation of ending inventory under absorption costing
The ending inventory calculated earlier of 2.600 units is multiplied by the per unit costs of $ 123 per unit to get the value of the ending inventory
$123 * 2600 units = $ 319,800
Answer:
Explanation:
Ordinary Annuity = Investment * PVAF(Interest, number of years)
Ordinary Annuity = $710 * PVAF(4%,5 years)
=$710 * 4.4518
=$3160.79
Answer:
The December 31st balance in Allowance for Doubtful Accounts, after the AJE is $69,600
Explanation:
Allowance for doubtful debts is a provision created by the entity for those Accounts Receivables for which settlement may never be received.
Juan, Inc. estimates bad debt expense as 2% of Accounts Receivable for the year
Therefore Provision for allowance for doubtful debts is $3,480,000 × 2% = $69600