Answer:
Dr Factory overhead $73,000
Cr Factory wages payable $73,000
Being cost of indirect labor for the month
Explanation:
The factory overhead cost account needs be debited because the cost is an indirect cost of production, this is also due to the fact that the transaction is an increase in expense as increase in expense account is automatically a debit entry.
The corresponding entry was credited to factory wages payable as the amount is owed to factory workers,as a result it remains in payable account until it is eventually settled in cash which would mean the cash account is credited and the factory wages payable account is debited.
The four 'Cs' of credit are : Character, Capacity or Cashflow, Capital and Conditions.
Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.
Capacity: It is the assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it the debt structure of the firm and the unused credit.
Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.
Answer: a. It merely conducted some activity outside of Alaska and that activity took place through a website.
Explanation:
CalmDown can use the defence that all it did was to conduct an activity through it's website and this happened to be outside Alaska.
As such the company is still bound by the state that it is registered in which in this case would seem to be in Alaska. They are not to be bound by the laws of another jurisdiction from the one they are registered to if the activity was done on the internet.
Marcus should therefore try to bring action against them in Alaska if he can.
Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.
Answer:
$3.16
Explanation:
Since in the question it is given that the company wants to maintain a constant dividend.
So, the maximum amount you are willing to pay for one share is
= $0.60 ÷ 19%
= $3.16
We simply divide the dividend for 3 year by the earning rate of return so that the maximum price could come
All the other information which is given is not relevant. Hence, ignored it
