Answer:
Mikhail's gains 10 carpets and 10 quilts from the trade. Dominique's also gains 10 carpets and 10 quilts from the trade.
Step-by-step Explanation:
Step 1: Capacity
Mikhail's can make 160 carpets or 160 quilts per month.
Dominique's can make 120 carpets or 200 quilts per month.
Step 2: Before Trade
Mikhail's makes 80 carpets and 80 quilts per month.
Dominique's makes 60 carpets and 100 quilts per month.
Step 3: After Trade:
Mikhail's makes 160 carpets per month.
Dominique's makes 200 quilts per month.
Trade = 70 carpets for 90 quilts.
Mikhail's now has 160 - 70 = 90 carpets and 90 quilts.
Dominique's now has 70 carpets and 200 - 90 = 110 quilts
Step 4: Gains from Trade:
Mikhail's gains 90 - 80 = 10 carpets and 90 - 80 = 10 quilts from trade.
Dominique's gains 70 - 60 = 10 carpets and 110 - 100 = 10 quilts from trade.
Answer:
$45,650
Explanation:
a) Calculations of Retained Earnings:
Beginning balance = $44,300
Net Income = 7,300
less Dividends -5,950
Ending balance = $45,650
b) A statement of changes in Retained Earnings is always prepared to include the net income available for distribution to stockholders and exclude the distributions already made to stockholders in the form of dividends before arriving at the ending balance of Retained Earnings. This later figure is reported in the Balance Sheet. This process is also part of the closing entries of temporary accounts to permanent accounts at the end of an accounting period.
Answer:
$31,000
Explanation:
Calculation for the cash received from Dividend
Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable
Hence,
Using this formula
Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable
Let plug in the formula
= 3,100+32,300-4,400
=31,000
Therefore the amount of cash received from dividend will be $31,000.
Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
$114,000
Explanation:
The computation of the residual income is shown below:
As we know that
Residual Income = Net operating Income - Average Operating assets × Required rate of return
where,
Net Operating Income is
= Sales Revenue - Variable Costs - Fixed Costs
= $500,000 - $300,000 - $50,000
= $150,000
And,
Average operating Assets is
= Net Operating Income ÷ Return on Investment
= $150,000 ÷ 0.25
= $600,000
So, the residual income is
= $150,000 - $600,000 × 6%
= $150,000 - $36,000
= $114,000
