Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicates that a product recall is probable and is estimated to cost the company $4.8 million. How will this affect the company's income statement and balance sheet this period?

Question

03-02-2020
Business

contestada

Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicates that a product recall is probable and is estimated to cost the company $4.8 million. How will this affect the company's income statement and balance sheet this period?

Respuesta :

Otras preguntas

determine the range of the function in the table below. x f(x) 0 -4 2 2 4 8 {0, 2, 4} {-4, 2, 8} {(0, -4), (2, 2), (4, 8)} {(-4, 0), (2, 2), (8, 4)}

Which choice shows the best way to join two independent clauses with a semicolon? My brother is a computer whiz; I can barely type my name. My brother knows

For the following system, if you isolated x in the second equation to use the Substitution Method, what expression would you substitute into the first equation?

All animals are a. land-dwelling multicellular heterotrophs. b. capable of walking on legs. c. multicellular, heterotrophic and lack cell walls. d. unicellu

A homogeneous mixture is a mixture in which the composition is not uniform throughout. a. true b. false

The difference between a Quincenera and a Sweet 16?

A gas has a. a definite volume but no definite shape. b. a definite shape but no definite volume. c. no definite shape or definite volume. d. a definite vol

If the government wants to jump-start the economy resulting in more consumer spending, it will raise taxes. true or false?

Which of these is not a genetic disorder? A .sickle-cell anemia B. Down syndrome C. cystic fibrosis D. chronic halitosis

What is another name for bipolar disorder? a. dr. jekyll and mr. hyde syndrome b. yin and yang illness c. aggressive-depressive illness d. manic-depressive

Munali Munali · Answer 1 · 2020-02-05T09:48:44+01:00

Answer:

Income statement will have an increased expense of $4.8 million and Revenue and cost of goods sold will decrease. In balance sheet the inventory will be decreased by the amount of crib toy inventory available.

Explanation:

Income Statement will show an expense of $4.8 million in this period as the cost of recall of inventory due to health hazard. Also sales and cost of goods sold will decrease by the amount of sales of crib toy in sales and by the amount of crib toys cost in cost of goods sold and will ultimately result in decrease in a gross profit of a company.

In the Balance Sheet the amount of Inventory will be decreased by the amount of crib toys available in stock.