Answer:
Smith will report an investment income of $56,000 in its income statement.
Explanation:
Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.
Answer:
Not change
Explanation:
In the long run we expect firms to earn zero profits. With competitive markets for both inputs and output, and with constant returns to scale, a doubling of all inputs would lead to twice as much output, twice as much revenue, and twice as much cost.
Answer:
Total Fixed costs: $
Rent 2,000
Utilities 700
Salaries 2,950
Advertising 50
Total fixed cost 5,700
Contribution per car = Selling price - Unit variable cost
= $10.50 - $2.50
= $8.00 per car
Break-even point in full-service car
= <u>Total fixed cost</u>
Contribution per car
= <u>$5,700</u>
$8.00
= 712.5 = 713 cars
Explanation:
Break-even point in full-service car equals total fixed cost divided by contribution per car. Contribution per car is selling price minus variable cost per car.
Answer:
Small-scale and flexible; Large-scale and inflexible.
Explanation:
Job shops tend to be <u>small scale and flexible</u> while continuous processes tend to be <u>large scale and inflexible</u>.
Job Shop: It is defined as small manufacturing units that produce a specific and customized product in small batches. Most of the products produced in this process have a unique set up. The estimation of costs is generally most difficult when the Job shop process has been chosen.
Continous processes: It is a streamlined process that has a production flow of products from one step to another without any interruption. A larger quantity is produced at one time, not in batches. It requires sophisticated control system.
Answer:
Based on the analysis, the basic accounting equations holds as follows:
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
Explanation:
Note: See the attached excel file for the horizontal analysis.
For event C: Advance payment for Equipment rentals = $29,000 * 5 months = $145,000
All the items under the shareholders’ fund are income statement items that will affect the retained earnings.
The additional note below the horizontal analysis in the excel file shows that accounting equations holds. That is;
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
