Analyzing and computing accrued warranty liability and expense canton company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, canton estimates that 3% of units sold each period will require repair at an average cost of $160 per unit. during the current period, canton sold 100,000 units and repaired 2,400 of those units. (a) how much warranty expense must canton report in its current period income statement? (b) what warranty liability related to current period sales will canton report on its current period-end balance sheet?

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times