Solution and Explanation:
the following is the income statement for the year ending
Saturn motorcycle's
Income statement
year ending december 31, 2018
Particulars Amount
net sales revenue 130000
Less: cost of goods sold 81000
gross profit 49000
Less: operating expense:
Selling expenses 10400
adminstartive expenses 8500
Total operating expenses 18900
operating profit 30100
Non operating revenues ( expenses)
add: interest revenue 1900
total other revenue 1900
net income 32000
Note: every amount is in dollars
To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, subtract the cost of goods sold from the net sales revenue to get the gross profit. Then, add the selling expenses and administrative expenses to get the operating expenses. Finally, add the operating income and other income to get the net income.
To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, we need to include key components such as net sales revenue, cost of goods sold, selling expenses, administrative expenses, and interest revenue. Here is the breakdown:
The multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018 is as follows:
Saturn Motorcycle Income Statement
Net Sales Revenue$130,000Cost of Goods Sold$81,000Gross Profit$49,000Operating Expenses$18,900Operating Income$30,100Other Income$1,900Net Income$32,000
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Answer:
Check the explanation
Explanation:
Government needs to fill gap of $64 billions
for economist A
Tax multiplier is 2 so in order to fill a output gap of 64 billions, cut taxes by 64/ 2 = 32 billion
tax have to cut by $32 billions
govt spending multiplier is 8, so spendinh has to increase by 64/8=$8 billions.
for economist B
Tax multipler is 8 so to fill a output gap of 64 billions, cut taxes by 64/ 8= 8 billion
tax have to cut by $8 billions
govt spending multiplier is 4, so spending has to increase by 64/4=$16 billions.
⇒This means that Economist C likely believes that:
- Tax cuts induce investment spending and improve workers incentives.This is because cutting the taxes gives an incentive to the workers to work more.
⇒ A rise in government spending completely crowds out private sector spending, because increased govt spending increases the interest rate, hence private spending is crowded out.
B. Recoverability test but not fair value test
C. Not recoverability test but fair value test
D. Neither recoverability test nor fair value test
Answer: The correct answer is "C. Not recoverability test but fair value test".
Explanation: The impairment test to be used is Not recoverability test but fair value test. To determine whether intangibles of indefinite life have deteriorated and must present another value in their balance sheet, they must implement the fair value test.
Answer:
The correct answer is option d.
Explanation:
If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.
The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.
The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.
Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.
Statement 'b' is incorrect. The slope of a linear demand curve remains constant, irrespective of the different pairs of points chosen on the curve. The other three statements provide accurate descriptions of the properties and behaviors of a linear, downward sloping demand curve.
In considering a linear and downward sloping demand curve, statement 'b' is incorrect when it declares that different pairs of points on the demand curve cannot result in different values of the slope of the demand curve. This statement is inaccurate because in a linear demand curve, the slope remains constant regardless of the different pairs of points chosen.
Statement 'a' is correct because as price increases, the quantity demanded decreases, thus leading to a decrease in total revenue. Statement 'c' is also correct because different parts of the demand curve can indeed have different price elasticities. Finally, statement 'd' is correct since the elasticity of demand generally becomes more elastic, as in more responsive to price changes, the further down the demand curve you move.
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purchase order
employee time ticket
receiving document
Answer:
job cost sheet
Explanation:
The job cost sheet refers to the statement used to report production costs and is developed by businesses using a work-order charging system to measure and assign costs of goods and services.
is the responsibility of the accounts department to chart all production costs (primary supplies, direct labor and overhead production) on the work cost sheet. For each worker, a separate job expense sheet is arranged.
Job cost sheet not gets utilized for paying work expenses only, it's also component of the reporting records of the business. It is also used in the system account as something of a subordinate ledger to the project as it includes all the information about the work being done.
Explanation:
The journal entries are as follows
a. Unrealized Holding Gain or Loss Dr $1,310
To Fair value Adjustment $1,310
(Being the unrealized gain or loss is recorded)
2. Cash $9,410
Loss on Sale of Investment $490 ($9,900 - $9,410)
To Equity Investment $9,900
(Being the sale of the stock is recorded)
3. Fair value Adjustment $1,020
To Unrealized Holding Gain or Loss $1,020
(Being the fair value adjustment is recorded)
The computation is shown below:
Stock Cost Fair Value Unrealized Gain(Loss)
Clemson Corp. Stock $20,200 $19,410 -$790
Buffaloes Co. stock $20,200 $20,700 $500
Net unrealized gain (loss) -$290
2017 -$1,310
Fair value adjustment -$1,020
$15,000,000
Plant & equipment
60,000,000
Current liabilities
10,000,000
Long-term debt
40,000,000
Assume the book values of Falcon’s assets and liabilities equal their fair values. How much goodwill does Peregrine report at the date of acquisition?
$35,000,000
$40,000.000
$30,000
$0
Answer:
(It seems that the amount in question is wrongly typed as 65,000 instead of 65,000,000)
The correct answer is $40,000.000.
Explanation:
The answer is calculated from guidlines provided in IFRS 10.
As per accounting standards the price paid above fair value of net asset is taken as goodwill. Goodwill is accounted as asset in balance sheet.
As fair value is not given we will assume that book values are equal to fair value. The detail calculations are given below.
Consideration paid $ 65,000,000
FV of net asset ($ 25,000,000)
Goodwill $ 40,000,000