Pia and Ramona are partners who share income in the ratio of 3:2. Their capital balances are $80,000 and $120,000 respectively. Income Summary has a credit balance of $40,000. What is Ramona's capital balance after closing Income Summary to Capital?
A) $140,000
B) $136,000
C) $96,000
D) $144,000
B
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Common-size statements:
A. Do not emphasize the relative importance of each item. B. Reveal changes in the relative importance of each financial statement item to a base amount. C. Reveal patterns in data across successive periods. D. Show the dollar amount of change for financial statement items. E. Compare financial statements over time.
During the first two years, Supplies, Inc. drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 10 years or 300,000 miles, and an estimated residual value of $25,000, what amount of depreciation expense should Supplies, Inc. record in the second year using the activity-based method?
A. $16,000. B. $18,500. C. $7,500. D. $11,000.
Which of the following pricing objectives does an organization adopt when it sets the price of its
products high shortly after product launch in order to recoup development costs? A) market share maximization pricing objective B) survival pricing objective C) market skimming pricing objective D) product-quality leadership pricing objective
Mungo Pet Supplies makes cat trees for several pet store chains. They order rolls of carpet (used to cover the trees) from a supplier. Mungo’s management has decided to use an EOQ model. The annual demand for carpet is estimated to be 1,000 rolls. The purchase price per roll is $20 and estimated inventory carrying cost rate is 25%. The cost to place an order from the supplier is $30. What is the optimal order quantity?
a. 54.7 b. 1000 c. 109.5 d. 500