Answer and Explanation:
According to the scenario,the computation of the given data are as follow:-
The budget is an estimation of expenses and revenue over a specific future time and it is re-evaluated and compiled on a period of time. The budget can prepare for a business, a government and a group of people, etc. It is an analysis of the income and expenditure that is useful for financial planning.
Based on this, the preparation of the flexible budget performance report is presented in attached excel spreadsheet. Kindly find it below
Answer:
bad debt expense 18,000
Explanation:
bad debt 1% of credit sales:
180,000 x 1% = 18,000
When the adjustment is made base on sales, the current balance in the allowance for doubtful debts is irrelevant.
So no calculation is needed for those.
Answer:
Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) they would not be able to claim her as a dependent.
Explanation:
If the grandparents provided $14,000 their contribution to Anna's school fees is not up to half so they cannot claim Anna as an exemption. Anna had $12,000 personal money and $8,000 scholarship, it is crowned that she provided $20,000 by herself.
However since she is under the age of 21 and in college, her parents can claim her.
Answer:
This scenario best illustrates an acquisition.
Explanation:
Acquisition refers to the situation where a company gains control of the other company by purchasing all or most of its shares. Acquisitions are common in small and medium-sized firms and may happen with or without the consent of the target company.
In the given example, Orange roof hotels are the target company that is being purchased by the Palace Hotel group which will now control the assets of the Orange roof hotels and take business decisions.
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
