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Question - Support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $162,000 and sold them for $304,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 5 percent of sales. During the year, she paid $2,620 cash to replace a defective tuner.
Required -
1. Prepare an income statement for Deloch's first year of operation.
2. Prepare a statement of cash flows for Deloch's first year of operation.
Assume that wayside furniture company pays a refund of $4,500 for returned inventory costing $2,500. Prepare journal entry to record the payment of refund
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Contingent liabilities present certain problems and opportunities for companies. You have been asked to help prepare the company's annual report and a lawsuit has been brought against the company for $50 million.
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And what are the DISADVANTAGES to the worker from being called an independent contractor when he or she was really an employee? Also, feel free to share any stories from your personal experience of this particular abuse.
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Earth Company expects to operate at 86% of its productive capacity of 52,000 units per month. At this planned level, the company expects to use 26,832 standard hours of direct labor.
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