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2 years ago

How is it possible for a company to show positive net income but go bankrupt? Give one example.

2 answers:

4 0

Yes, it is possible for a company to show positive net income but go bankrupt.There are two types of bankruptcy. The first takes place when the company's outgoing cash is more than the cash which is incoming. It happens when companies stretch their business to complete a particular project and payment does not come in a timely manner. The second takes place when liabilities are greater than assets of an organization. In this case, the company can have a positive net income but cannot continue its business operations without help from investors or the court of bankruptcy.

Akimi4 [234]2 years ago

3 0

It happens when companies stretch their business to complete a particular project and payment does not come in a timely manner. The second takes place when liabilities are greater than assets of an organization.

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A-Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The compan

Elan Coil [88]

Answer:

$4230 is the correct answer to the given question .

Explanation:

As Mention in the question the sales revenue to the dishwashers = $94,000

Also the company estimated warranty expense cost is =4.5% of revenues,

Now the estimated warranty payable can be determined by the following formula

$Annual\ sales\ revenue\ for \ the \ dishwashers\ * warranty\ expense\ revenues.$

$= \ 94000\ * \ 4.5\ % \ of \ revenues$

== $4230

6 0

2 years ago

80 points! Please help!! You have been invited to give a speech at a local restaurant. The person who is hosting the event has a

lesya [120]

Answer:

I would think about what I could use to get my audiences attention and something that would be interesting for everyone so that everyone can learn something.

Explanation:

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2 years ago

Which of the following statements about the relationship between interest rates and bond prices is true? I) There is an inverse

BaLLatris [955]

Answer: A. I and IV only

Explanation:

The relationship between bond prices and interest is an inverse one. This is because bonds have fixed rates so when for instance interest rates increase, the fixed rate of bonds will become less attractive as people would want to make the higher interest. They will therefore demand less of bonds and the prices will drop. The reverse is true.

Also, long term bonds are more affected by interest rate changes then short term bonds. This is because, as they have a longer term till maturity, they will be even less attractive when interest rates rise.

7 0

2 years ago

Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twi

koban [17]

Answer:

B. Sending accounts receivable confirmations.

4 0

2 years ago

Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,00

zhuklara [117]

Answer:sales must have amounted to:$704,000

Explanation:

Contribution ratio = Sales ratio - Variable cost ratio

= 100%- 75%

=25%

Sales to break even = Fixed expenses / Contribution margin ratio

Therefore,

Fixed expenses = Sales to break even x Contribution margin ratio

=$840,000 x 25%

=$210,000

Contribution margin can also be calculated as

Fixed expenses- Operating loss

=$210,000 -$34,000

=$176,000

Sales = Contribution margin/ Contribution ratio

= $176,000/25% =$704,000

5 0

2 years ago