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2 years ago

The APB partnership agreement specifies that partnership net income be allocated as follows:

Business

1 answer:

katovenus [111]2 years ago

8 0

Answer:

C) 19000 (3000) 34000

Explanation:

income: 50,000

salaries (80,000) (sum of partner salaries)

interest (10,000) (total capital 100,000 x 10% interest )

net loss (40,000)

Partner A

50,000 + 30,000 salary + 5,000 interest - 16,000 loss share(40%) = 69,000

It woulld be allocate: 69,000 - 50,000 = 19,000

Partner B

30,000 + 10,000 salary + 3,000 interest - 16,000 loss share(40%) = 27,000

27,000 - 30,000 = -3,000

Partner C

20,000 + 40,000 salary + 2,000 interest - 8,000 loss share(20%) = 54,000

54,000 - 20,000 = 34,000

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Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.

Ostrovityanka [42]

Answer:

Depreciation Expense = $16900

Explanation:

Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.

Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.

Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900

Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.

7 0

2 years ago

Haberdash inc. last year reported sales of $12 million and an inventory turnover ratio of 3. the company is now adopting a just-

Sindrei [870]

Sales = $12,000,000

Inventory Turnover ratio (old) = 3
Inventory Turnover ratio (new) = 7.5
Freed up Cash = ?
So, let’s find out the freed up cash
 We know level of inventory are calculated as follows;
Inventory = Sales Inventory turnover ratio
Calculating $ value of old inventory
 Inventory Old=$12,000.0003
 =$7.5,000,000
 Calculating $ value of New inventory
 Inventory New=$12,000,0075
 =$3,000,000
 The freed up cash would be=Old Inventory – New Inventory
 =$7.5,000,000 - $3,000,000
=$4.5,000,000

6 0

2 years ago

Read 2 more answers

Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities. Because of limited resources,

alexandr402 [8]

Answer:

- Net present value of each project:

Project A:$37,193

Project B:$4,629

=> Project A should be chosen based on NPV approach as its NPV is higher.

- Internal rate of return of each project:

Project A: 20%

Project B: 12%

=>Project A should be chosen based on IRR approach as its IRR is higher

Explanation:

- Net present value calculation:

NPV for Project A: -111,000 + (37,116/0.08) x [1-1.08^(-5)] = $37,193

NPV for Project B: -43,000 + (11,929/0.08) x [1-1.08^(-5)] = $4,629.

- Internal rate of return approach;

IRR is the discount rate that bring NPV of project's cash flows to 0. Thus:

IRR for project A: -111,000 + (37,116/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 20%

IRR for project B: -43,000 + (11,929/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 12%

6 0

2 years ago

In March, stockholders of Herbalife Nutrition approved a 3-for-2 stock split. After the split, how many shares of Herbalife stoc

Anna11 [10]

Answer:

600 shares

Explanation:

If a 3-for-2 stock split will take place, for every 2 stocks that an investor has, he will receive three stocks. So this specific investors who owns 400 stocks will receive:

(400 / 2) x 3 = 200 x 3 = 600 stocks.

After the 3-for-2 stock split, the company will have 50% more stocks outstanding and the price of each stock should be reduced by one third. So the investor shouldn't earn any profit from this split since the market value of the investment should remain about the same (stock prices change daily whether the split takes place or not).

4 0

2 years ago

26 Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanes

Nostrana [21]

Answer:

$47,500

Explanation:

The computation of the dollars amount received for the 5,000,000 yen is shown below:

= Expected yen receivable × forward rate

= 5,000,000 × $.0095

= $47,500

To find out the dollar amount we multiply the Expected yen receivable with the forward rate so that accurate value can come. And, we ignored the current spot rate and the turns out spot rate

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2 years ago