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andrew-mc [135]
2 years ago
8

Evan Corporation provided consulting services for Kensington Company in 2015. Evan incurred costs of $48,000 associated with the

consulting and billed Kensington $72,000. Evan paid $32,000 of its costs in 2015 and the remaining $16,000 in 2016. Evan received $36,000 of its billing in 2015. Kensington paid the remaining $36,000 in 2016. Evan reports on the accrual basis of accounting. How much is Evan’s 2015 and 2016 profit related to the Kensington consulting?
Business
1 answer:
lisov135 [29]2 years ago
3 0

Answer:

2015 - $24,000

2016 - $0

Explanation:

The computation of profit for each year is shown below:

For 2015:

The profit = Service revenue - expenses incurred

                = $72,000 - $48,000

                = $24,000

For 2016:

There is no transaction to record under the accrual basis of accounting. So, the profit is zero

As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts

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What media format reaches more people than television during the hours of the workday?
nignag [31]

Radio.

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8 0
2 years ago
Read 2 more answers
A company works 320 days per year and has an annual demand of 2080 units of product desires to set an reorder point that will co
GenaCL600 [577]

Answer:

D. Re-order point = 26 days

Explanation:

Given,

Annual Demand, D = 2,080 units

Number of working days = 320 days

Lead time = 4 days

We know,

Re-order point = (Annual demand/Number of working days)*Lead Time

Re-order point = (Annual demand/Number of working days)*Lead Time

Re-order point = (2,080/320)*4

Re-order point = (6.5*4)

Re-order point = 26 days

Therefore, the answer choice is D.

As there is no maximum and average lead time and no replenishment stock, I exclude the safety stock from the re-order point calculation.

3 0
3 years ago
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On Mar
saveliy_v [14]

Answer:

b. Net Income

e. Cash from Investing Activities

Explanation:

Calculation to determine Which of the following items would be increased by the sale of the marketable securities

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Gain from investment = Selling price of the security - Value of the security

Let plug in the formula

Gain from investment= $93,000 - $85,000

Gain from investment= $8,000

Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.

Therefore the items that would be increased by the sale of the marketable securities are :

b. Net Income

e. Cash from Investing Activities

4 0
2 years ago
To sit next to her mother at a restaurant, diana pushes her little brother mark out of the way. what type of aggression is this?
DENIUS [597]
<span>To sit next to her mother at a restaurant Diana pushes her little brother mark out of the way. This is an example of instrumental aggression. Instrumental aggression refers to an aggressive behavior intended to achieve a goal. It is made against another person in whom the aggression is used as a means of securing some reward or to achieve an external goal such as a victory.</span>
8 0
2 years ago
Q#2 (Chapter 9). A diversified company has decided to use its overall firm WACC as a performance benchmark for rating its divisi
labwork [276]

Answer:

Pros: Use of singe hurdle rate saves time in the evaluation of projects which results in prompt decision making.

Cons: Company may reject good projects and accept bad ones due to the assumptions underlying WACC use in capital budgeting.

Explanation:

Pros of using WACC: The use of WACC implies that the company  uses a single hurdle rate  for all projects, which simplifies the decision making and saves  time when evaluating projects

Cons of using WACC: Use of WACC assumes that  there is no change in capital structure i.e all projects are financed in exactly the same way and all projects have the same risk . These assumptions  may lead to the company rejecting good projects  and accepting bad ones. For example the company may accept a high risk project with a return of 14% when the minimum return that should be accepted according to the high risk divisional WACC is 16%. Likewise, the company may reject a low risk project with a return of 11%, when it is in fact a good project whose minimum return should be 8% as per the low risk divisional WACC.

7 0
2 years ago
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