Response: $11,200
Justification:
Utilizing the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
Thus,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
To determine total liabilities, we first need to ascertain total assets and total capital.
At the end of the first year, the assets of Shapiro's consulting services are as follows:
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that total assets are calculated by summing the values of each asset above.
Net income represents an increase (or decrease if it's a loss) in capital, thus we classify it as part of capital. Specifically, net income at the end of the first year adds to the initial capital.
The owner's withdrawal also decreases the capital.
Consequently, total capital at the end of the first year is computed as:
Capital (beginning of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: The notation ($2,000) indicates a deduction of $2,000 in accounting terms.
Using (1), total liabilities at the end of the first year can be calculated as
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Answer: $465,000
Explanation:
Activity-based costing (ABC) is employed to determine the total expenses associated with activities necessary for product creation. In an ABC system, each activity related to production is allocated a corresponding cost.
From the information in the question, the following deductions can be made:
Machining costs:
= 299,000/13,000 × 7,000
= 23 × 7,000
= $161,000
Machine setup costs:
= 240,000/400 × 150
= 600 × 150
= $90,000
Cost for product design:
= 80,000/2
= $40,000
Order size costs:
= 290,000/10,000 × 6,000
= 29 × 6,000
= $174,000
Total expenses = $161,000 + $90,000 + $40,000 + $174,000
= $465,000
Thus, the total overhead cost associated with Product H27T comes to $465,000.
Answer:
D. Foreign Subsidiary
Explanation:
A Foreign Subsidiary is a firm that's either partially or fully owned by a larger corporation headquartered in a different nation. This indicates that the company did not organically establish development or begin operations in the nation where it operates. Establishing foreign subsidiaries is a key method for entering international markets, which entails significant risk and commitment compared to other methods listed in the question, due to considerations like costs and time for setting up a foreign subsidiary, compliance issues, tax obligations, immigration regulations, and securing office space and employee accommodations. These factors are less of a concern in joint ventures, strategic alliances, or franchising when seeking to enter international markets.
mutual fund. Explanation: A mutual fund is an investment vehicle that aggregates money from various investors, typically smaller ones, and allocates these funds to buy and sell securities such as stocks, bonds, etc. This process is managed by a fund manager, usually an institution rather than a single individual, which in this context is Larkan & Tokodo, and the fund's value is determined based on the price of its shares, which reflects a portion of the investment pool.
