Answer:
Gore is not required to make any accounting adjustments
Explanation:
Gore won't be required to make any accounting adjustments because the litigation loss is already $2,000,000 leading to him recording a liability in his account in which
$5 million in legitimate warranty claims were as well filed by his customers which is why he won't be making any further Accounting adjustment in 2021.
Answer:
Total amount of dividends paid over the last three years is $20500
Explanation:
The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,
Ending balance = Beginning balance + Net Income - Dividends
We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500
Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.
15000 = 16000 + 19500 - Dividends
Dividends = 35500 - 15000
Dividends = $20500
Answer:
c. The equilibrium quantity is less than the socially optimal quantity.
Explanation:
Externalities are positive / negative side effects to other parties, which are not monetarily valued & compensated.
Positive Externalities cause extra positive side effect, have extra social benefit apart from private benefit. Their free market unregulated equilibrium under estimates their Total Benefit (considering only private benefit , ignoring social benefit). So the equilibrium quantity is also under estimated. Hence, Equilibrium quantity is less than socially optimal quantity.
Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation:
