Which answer applies to "fine print"?

"Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/¥100. Your margin account curre

g100num [7]

Answer:

Explanation:

The solution to the above problem is shown in the attached picture below. It is because of the arrangement i had ti use pen and book. Thank you

6 0

3 years ago

Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating l

Alex

Answer: 1. Degree of Operating Leverage = 4

2. $384,000

Explanation:

1. Degree of Operating Leverage is calculated by dividing the Contribution margin by the Net Operating income.

Now, the Contribution margin is the difference between Price and Variable Cost. This means that if you remove fixed costs from it as well you get your profit.

Therefore 1. can be calculated thus,

Degree of Operating Leverage = Contribution Margin / Net Operating income

Degree of Operating Leverage = 960,000 / 960,000 - 720,000

Degree of Operating Leverage = 4

2. When Sales increases by a certain percentage we multiply that percentage by the Degree of Operating Leverage to find out how much Income will increase by.

Because sales went up by 15%, Singh Co. can expect that income would rise by,

= 15% * 4

= 60%.

Now income is Contribution margin - fixed costs so we have,

Income = 960,000 - 720,000

Income = $240,000

An increase of 60% would be

= 240,000( 1+ 60%)

=$384,000

$384,000 is the amount of income that Singh Co. can expect.

4 0

3 years ago

When applying the general accounting equation, if total liabilities increased by $5,000, then (select the BEST and MOST COMPLETE

lyudmila [28]

Answer:

Assets must have increased by $5,000, or stockholders' equity must have decreased by $5,000

Explanation:

The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity.

This may be expressed mathematically as

Assets = Liabilities + Equity

As such, an increase in total liabilities by $5,000 from the options given means that assets must have increased by $5,000, or stockholders' equity must have decreased by $5,000, this way, the accounting equation stays true.

7 0

3 years ago

Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time

Gnom [1K]

Answer:

since Percy Company's owns 80% of Song Company's stocks, we must use the equity method to record its investment in Song Company

Beginning 2014, investment in Song Company

Dr Investment in Song Company 406,000

Cr Cash 406,000

2014, to record Song's net income

Dr Investment in Song Company 48,480

Cr Investment revenue 48,480

2015, to record Song's net income

Dr Investment in Song Company 43,120

Cr Investment revenue 43,120

2016, to record Song's net loss

Dr Loss on investment 45,760

Cr Investment in Song Company 45,760

2014, to record Song's dividends

Dr Cash 19,040

Cr Investment in Song Company 19,040

2015, to record Song's dividends

Dr Cash 40,480

Cr Investment in Song Company 40,480

2016, to record Song's dividends

Dr Cash 29,040

Cr Investment in Song Company 29,040

5 0

3 years ago

Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?

GarryVolchara [31]

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

6 0

3 years ago