Answer:
Correct option is (C)
Explanation:
Under direct write off method, if a particular accounts receivable is written off, then no counter asset is created. Bad debt expense is debited and accounts receivable is credited.
As bad debt expense is reported on the debit side of income statement, profit reduces by the same amount thereby decreasing stockholder's equity. Since accounts receivable is credited, accounts receivable is decreased by the same amount in the balance sheet, thereby decreasing assets.
Answer: $535,251.25
Explanation:
Cash flow to investors from operating activities is calculated by:
= EBIT + Depreciation - Taxes
EBIT = Sales - Cost of goods sold - Depreciation
= 1,484,000 - 803,000 - 175,000
= $506,000
Taxes = Tax rate * (EBIT - Interest)
= 35% * (506,000 - 89,575)
= $145,748.75
Cash flow to investors = 506,000 + 175,000 - 145,748.75
= $535,251.25
Answer:
The correct option is A, market segmentation
Explanation:
Market segmentation is the process of dividing customer base into distinct groups based on age,income,level of education,personality,perception and so on.
The purpose of segmenting the markets is for the organization to satisfy the needs of these different groups based on their unique characteristics and to able to sell to them goods that best match their status.
The scenario here is that Gap Inc,has successfully been able to discover the right set of people that its casuals best match.
Answer:
$4,000
Explanation:
The asset's recovery period is 5 years and the half-year convention applies.
Therefore :
$20,000 ×0.20 = $4,000.
