During 2016, rao co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale. sales and actual warranty expenditures for the first three-year period were as follows: (assume the accrual method) sales actual warranty expenditures 2016 $1,600,000 $ 39,000 2017 2,500,000 65,000 2018 2,100,000 135,000 $6,200,000 $239,000 what amount should rao report as a liability at december 31, 2018? group of answer choices $0 $319,000 $71,000 $84,000

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

                                                = $558,000

And, the actual warranty expenditure is $239,000

Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.