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Mrac [35]
2 years ago
4

Edgar uses the cash method to report the income from his software consulting business. A large publicly held corporation has off

ered to invest in Edgar's business as a limited partner. Complete the statement below regarding the method of accounting for the new partnership.If the partnership's average annual gross receipts for the prior three-year period exceed $ it can use either the cash or accrual method of accounting .
Business
1 answer:
Dmitrij [34]2 years ago
3 0

Answer:

The method Edgar and the Corporation requires is the accrual method, because it is a partnership between both of them and  this method would be best for reporting of income

Explanation:

Solution

It is a partnership with a corporate partner, for this it ill not put into consideration the method of cash accounting.

The partnership will be new or seen as new to both Edgar and the Corporation, what it would require is electing the accrual method of accounting.

Edgar should change accounting method from cash to accrual method for income reporting.

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Peppercorn Inc. has outstanding nonconvertible preferred stock​ (cumulative) that pays a quarterly dividend of​ $1.00. If your r
Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = <u>Quarterly dividend</u>

                                      Quarterly required rate of return

                                   = $1.00

                                       0.08

                                   = $12.5      

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

5 0
2 years ago
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below
RideAnS [48]

Answer:

137,000

Explanation:

                                Jan          Feb              March

Units produced     94000                         80000

Raw materials         26,000

Raw materials       213800    239800   295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

7 0
2 years ago
Labor Input Total Product Marginal Product Average Product 1 8 8 8.0 2 17 9 8.5 3 27 10 9.0 4 36 9 9.0 5 44 8 8.8 6 51 7 8.5 7 5
Yuki888 [10]

Answer:

Check the explanation

Explanation:

Labor Input is an indicator the pointer characterizing the labor expressed expenditure in man-hours on a production of a particular consumer value or on a technical operation.

Total product is the total amount of output that a firm produces; it is usually stipulated in relation to a variable input.

Marginal Product is the physical efficiency or productive ability of an input in the change in output which results from employing one more unit of a particular input, presumptuous that the amounts of other inputs are kept constant.

Average Product is the amount of the overall output that was being produced per unit of a variable input, holding all other inputs at a constant rate.

The graphical solution to the question above can be seen in the attached image below.

8 0
2 years ago
For each of the following three scenarios, would you rather: a. Receive $100 in one month or $100 in two months (most people pre
Kryger [21]

Answer:

I would Like to receive $100 in one month rather in two months.

I would like to take to take dinner in one month rather in two months.

Explanation:

Time value of money money describes that the amount now in hand is worth more rather having it after some time. All the money have potential earning capacity and it earn with the passage of time as time gone the earning will also lost. That is why it is better to receive money in one month rather in two months and have dinner in one month rather in two months.

8 0
2 years ago
Unscramble the vocabulary word from Chapter 12: yalplor
makvit [3.9K]

Payroll is your answer.

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~

7 0
2 years ago
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