Answer:
a. Warranty expense $480,000
b. Warrant liability $96,000
Explanation:
Solution-a
Warranty expense = 3%*100,000*$160
Warranty expense = $480,000
Solution-b
Warranty liability = $480,000 -($160*2,400)
Warranty liability = $96,000
Answer: a. Only I
Explanation:
In a sell or process further decision, the only cost that is relevant is the variable production cost that is incurred after split-off.
It should be noted that a split-off is when the parent company of an organization uses specified terms to divests its business unit
Answer:
20%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow for year zero =-302,820
Cash flow each year from year one to seven = 84,000
IRR = 20%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer:
The subtract will increase in inventory ($5000)
Explanation:
The decrease in inventory is a decrease in cash flow indirect method
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Business Entity Assumption state that businessman and business are a different entity.
Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.
In the case of Michel McNamee his bank account and personal home in not recorded in the company's book.
