Answer:
1) Warranty expense = $550
2) Warranty liability = $550
3) Warranty liability = $435
Explanation:
As per the data given in the question,
1.) Warranty expense = 5% of dollar sales
= 5% × $11,000
= $550
2.) On year end Dec-31st balance of liability will be same as expense incurred as there is no repair in year 1.
So, Estimated Warranty liability = Warranty expense
Estimated Warranty liability = $550
3.) Beginning balance = $550
Repair cost = $115
End balance of year = Beginning balance - Repair cost
= $550 - $115
warranty liability = $435
Answer:
$5
Explanation:
Earnings per share is the total profit earned by a firm divided by the number of outstanding shares
Earnings per share = earnings / total outstanding shares
$500,000 / 100,000 = $5
Answer:
The answer is C.
Explanation: Drill-down capability refers to the capability necessary to achieve a goal such as a desired level of output. It enables users to get details, and details of details, of information, and it also involves the aggregation of information and features simple roll-ups to information that are complex and interrelated.
What this means is that, Drill down is a capability that takes the person who needs information from a more general view of the data to a view that is more specific and precise. For example, when there is a report that shows sales revenue by state can allow the user to select a specific state, click on it and see sales revenue by county or city within that particular selected state.
Answer:
b. In the statement of cash flows, a decrease in accounts payable is subtracted from net income in the operating activities section.
Explanation:
Operating activities: It involves those transactions that even after net income affect the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
These adjustments would be reflected in working capital. In addition the depreciation costs are applied to the net income and the loss on the sale of assets is added while the gain on the sale of assets is deducted