Answer:
Primarily for the benefit of persons outside of the business organization.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Thus, it includes balance sheet, statement of retained earnings and income statement. The information that are found in a financial statement are revenues, expenses, liability, equity and assets.
Hence, the primary objective of financial accounting is to provide accounting information for external users so as to enable them have a good understanding of the financial inclination of a business firm and thus, make an informed decision whether or not to invest in the business firm.
In Accounting, the external users of a financial accounting information includes customers, creditors, investors shareholders and government regulators.
A company had net income of $209800. Depreciation expense is $26500. During the year, Accounts Receivable and Inventory increased $16700 and $41500, respectively. Prepaid Expenses and Accounts Payable decreased $4500 and $5500, respectively. There was also a loss on the sale of equipment of $1900. How much cash was provided by operating activities?
Answer:
$2,000
Explanation:
Cash flow from Operating Activities
Net Income $209800
Adjustment to non-cash items :
Depreciation expense $26500
Adjustment for Changes in working capital :
Accounts Receivable ($16700)
Inventory increased ($41500)
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is rolls. The cost per roll is $, and the annual holding cost is percent of the cost. Each order costs $. a. How many rolls should Yellow Press order at a time? Yellow Press should order nothing rolls at a time. (Enter your response rounded to the nearest whole number.) b. What is the time between orders? (Assume workdays per year.) The time between orders is nothing days. (Enter your response rounded to one decimal place.)
Answer:
A. 44 rolls at a time
B. 5.8 days
Explanation:
A. Calculation to determine How many rolls should Yellow Press order at a time
Using this formula
EOQ=√2*Annual demand*holding cost /Carrying cost
Let plug in the formula
EOQ=√2*2,750*$35/$625*16%
EOQ=√$192,500/100
EOQ=44 rolls at a time
Therefore How many rolls should Yellow Press order at a time is 44 rolls at a time
B. Calculation to determine time between orders
Time between orders=5.8 days
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation
Balance Sheets
December 31
2020 2019 2018
Cash $ 30,600 $ 17,300 $ 17,300
Accounts receivable (net) 50,900 44,500 48,600
Other current assets 90,100 94,800 64,900
Investments 54,700 70,600 44,600
Plant and equipment (net) 500,600 370,000 358,700
$726,900 $597,200 $534,100
Current liabilities $85,600 $79,000 $70,700
Long-term debt 144,200 85,000 50,900
Common stock, $10 par 384,000 319,000 308,000
Retained earnings 113,100 114,200 104,500
$726,900 $597,200 $534,100
Jergan Corporation
Income Statement
For the Years Ended December 31
2020 2019
Sales revenue $736,500 $605,600
Less: Sales returns and allowances 40,200 31,000
Net sales 696,300 574,600
Cost of goods sold 424,600 372,000
Gross profit 271,700 202,600
Operating expenses (including income taxes) 181,181 150,886
Net income $ 90,519 $ 51,714
Additional information:
1. The market price of Jergan’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
(a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2019 2020
(1) Profit margin % %
(2) Gross profit rate % %
(3) Asset turnover times times
(4) Earnings per share $ $
(5) Price-earnings ratio times times
(6) Payout ratio % %
(7) Debt to assets ratio % %
Answer:
1. 2020
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $271,700/$696,300
Gross Margin Ratio = 0.3902054
Gross Margin Ratio = 39.02%
2019
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $202,600/$574,600
Gross Margin Ratio = 0.35259311
Gross Margin Ratio = 35.26%
2. 2020
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $90,519/$696,300
Profit Margin Ratio = 0.13
Profit Margin Ratio = 13%
2019
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $51,714/$574,600
Profit Margin Ratio = 0.09
Profit Margin Ratio = 9%
3. 2020
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $696,300 / [726900+597200)/2]
Asset Turnover Ratio = $696,300 / $662050
Asset Turnover Ratio = 1.05
2019
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $574,600 / [(597200+534100)/2}
Asset Turnover Ratio = $574,600 / $565,650
Asset Turnover Ratio = 1.02
4. 2020
Earning per share = Net Income / Weighted Average Share
Earning per share = $90,519 / [(38400+31900)/2]
Earning per share = $90,519 / $35,150
Earning per share = 2.58
2019
Earning per share = Net Income / Weighted Average Share
Earning per share = $51,714 / [(31900+30800)/2]
Earning per share = $51,714 / $31,350
Earning per share = 1.65
5. 2020
Price Earning Ratio = Price/EPS
Price Earning Ratio = $8.50/2.58
Price Earning Ratio = 3.30
2019
Price Earning Ratio = Price/EPS
Price Earning Ratio = $7.50/1.65
Price Earning Ratio = 4.55
6. 2020
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $229,800/$497100
Debt Equity Ratio = 0.46
2019
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $164,000/$433200
Debt Equity Ratio = 0.38
Wilson Company reported net income of $105,000 for the year ended December 31, 2014. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2014 using the indirect method was
Answer:
$109,000
Explanation:
Particulars Amount
Net income $105,000
Add: Depreciation expense $18,000
Less: Gain on disposal of equipment ($9,000)
Add: Inventory decrease $15,000
Less: Accounts payable decrease ($20,000)
Net cash provided by operating activities $109,000
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 3,200 shares held as treasury stock. What is the entry for the dividend declaration?
Answer:
See below
Explanation:
The journal entry is shown below;
Dividend payable $10,080
_________To Cash $10,080
(Being the payment of dividend paid)
The computation is shown below;
= (20,000 shares - 3,200 shares) × $0.6
= $10,080
Dividend payable was debited as it decreases liabilities and credited cash as it reduced the assets.
During 2019, Sunland Company expected Job no. 59 to cost $600000 of overhead, $520000 of materials, and $400000 in labor. Sunland applied overhead based on direct labor cost. Actual production required an overhead cost of $315000, $590000 in materials used, and $240000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
Answer:
Under-absorbed overheads= $15,000
Explanation:
Over or under absorbed overhead occurs where there is a difference between absorbed overhead and actual overhead.
To determine whether overhead is over absorbed or under absorbed we follow the steps below:
Step 1 : Absorption rate
Rate = 600,000/400,000× 100= 125%
Step 2 : Absorbed overhead
Absorbed overhead= 125%×240,000=300,000
Under absorbed overheads = 315,000-300,000= $15,000
Under-absorbed overheads= $15,000
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.
Answer:
b. decrease Amazon sales
Explanation:
Note: "Options the question is attached as picture below"
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. If we hold all else equal, the effect of this tax would be to decrease Amazon Sales In the District of Columbia.
This action will consequentially increase the sales in local Market and then discourage online shopping along with it In Columbia district; it will decrease sales overall.
The following information relates to a product produced by Orca Company: Fixed selling costs are $1,000,000 per year. Although production capacity is 500,000 units per year, Orca expects to produce only 400,000 units next year. The product normally sells for $80 each. A customer has offered to buy 60,000 units for $60 each. The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a:
Answer,:
increase in operating income by $840,000
Explanation:
The computation is shown below:
Offer price per unit $60
Less: Variable costs per unit:
Direct materials ($20)
Direct labor ($14)
Variable overhead ($12)
Variable selling $0
Incremental profit per unit (a) $14
Units offered to sell (b) 60,000
Effect on Operating Income (Increase) (a × b) $840,000
Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000
Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of 66000t 38000 dollars per year during the first six months of operation, and at the continuous rate of $71000 per year after the first six months. The cost of the machine is $160000. The interest rate is 5% per year, compounded continuously. a) Find the present value of the revenue earned by the machine during the first year of operation. Round your answer to the nearest cent. Value: $ equation editorEquation Editor b) Determine how long it will take for the machine to pay for itself; that is, how long until the present value of the revenue is equal to the cost of the machine. Round your answer to the nearest hundredth. Years: equation editorEquation Editor
Answer:
a-The present value of revenue in the first year is $61,085.92.
b-The total time it would take to pay for its price is 2.44 years of 29.33 months.
Explanation:
a-
Let the function of the revenue earned is given as
[tex]S(t)=\left \{ {{66000t+38000} {\ \ 0
The present value is given as
[tex]PV=\int\limits^a_b {S(t)e^{-rt}} \, dt[/tex]
Here
a and b are the limits of integral which are 0 and 1 respectivelyr is the rate of interest which is 5% or 0.05S(t) is the function of value which is [tex]S(t)=\left \{ {{66000t+38000} {\ \ 0So the equation becomes
[tex]PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t+38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t)e^{-0.05t}} \, dt+\int\limits^{0.5}_0 {(38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=8113.7805+18764.4669+34207.6751\\PV=61085.9225[/tex]
So the present value of revenue in the first year is $61,085.92.
b-
The time in which the machine pays for itself is given as
[tex]PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt+\int\limits^t_1 {S(t)e^{-0.05t}} \, dt\\PV=61085.9225+\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt[/tex]
The present value is set equal to the value of machine which is given as
$160,000 so the equation becomes:
[tex]PV=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\160000=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt=160000-61085.9225\\\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt=98914.07\\\\t=-\dfrac{\ln \left(0.93034\right)}{0.05}\\t=1.44496[/tex]
So the total time it would take to pay for its price is 2.44 years of 29.33 months.
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,360 and 4,200, respectively. The actual manufacturing overhead was $72,200. What is the predetermined manufacturing overhead rate per direct labor hour for the year
Answer:
$16.00
Explanation:
Predetermined manufacturing overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined manufacturing overhead rate = $32,320 ÷ 2,020
= $16.00
Applied overheads = Predetermined manufacturing overhead rate x Actual activity
therefore,
Applied overheads = $16.00 x 2,410 = $38,560
Conclusion :
Under-applied overheads = $72,200 - $38,560
= $33,640
the predetermined manufacturing overhead rate per direct labor hour for the year is $16.00
The controller of Carla Vista Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Maintenance Costs Total Machine Hours January $3,173 4,210 February 3,606 4,808 March 4,327 7,212 April 5,409 9,496 May 3,846 6,010 June 5,878 9,620
(a) Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.)
Variable cost per machine hour
(b) Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)
Fixed costs
Answer:
Hello! Your answer would be, BELOW
Explanation:
(A)$7
(B) $700 or $7
Hope I helped! Ask me anything if you have any questions. Brainiest plz!♥ Hope you make a 100%. Have a nice morning! -Amelia♥
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.
Time Charges Material Loading Charges
Technicians' wages and benefits $266,000 -
Parts manager's salary and benefits - $40,000
Office employee's salary and benefits 45,600 10,500
Other overhead 22,800 28,000
Total budgeted costs $334,400 $78,500
The company desires a $35 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $400,000.
Required:
a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.
Answer:
a. Rate charged per hour of labor = [Total Budgeted Costs (Time Charges) / Number of Hours + Profit margin]
Rate charged per hour of labor = [$334,400/7,600 + $35]
Rate charged per hour of labor = $44 + $35
Rate charged per hour of labor = $79
b. Calculation of Material Loading percentage:
= [$40,000 + $10,500 + $28,000] / $400,000
= $78,500 / $400,000
= 0.19625
= 19.63%
Lee, Brad, and Rick form the LBR Partnership on January 1 of the current year. In return for a 25% interest, Lee transfers property (basis of $15,000, fair market value of $17,500) subject to a nonrecourse liability of $10,000. The liability is assumed by the partnership. Brad transfers property (basis of $16,000, fair market value of $7,500) for a 25% interest, and Rick transfers cash of $15,000 for the remaining 50% interest.
Required:
a. After the contribution, Lee's basis in his interest in the partnership is $_________
b. Brad's basis in his interest in the partnership is $__________
c. Rick's basis in his interest in the partnership is $________
Answer and Explanation:
The computation of the partners basis is given below:
a. Lee basis
= ($15,000) - ($10,000 ÷ 4 × 3)
= $7,500
b. Brad basis
= $16,000 + (10,000 × 25%)
= $18,500
c. Rick basis is
= $15,000 + ($10,000 × 50%)
= $20,000
In this way each partners basis should represent their interest in the partnership
The same is to be considered
A firm is considering taking a project that will produce $13 million of revenue per year. Cash expenses will be $4 million, and depreciation expenses will be $1 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 30 percent marginal tax rate
Answer:
$5.2 million
Explanation:
The computation of the free cash flow is shown below:
We know that
Free cash flow = EBIT × (1 -Tax Rate) + Depreciation & Amortization
Here
EBIT = Revenues - decreased amount of cash revenues - cash expenses - depreciation
= $13 million - $2 million - $4 million - $1 million
= $6 million
Now the free cash flow is
= $6 million × ( 1 - 30%) + $1 million
= $4.2 million + $1 million
= $5.2 million
define business structure?
The comparative balance sheets of Greenvale Games, Inc. show a net decrease in unexpired insurance of $400 and a net decrease in interest payable of $250. In order to reconcile net income with net cash flow from operating activities, net income should be:
Answer:
$150 increase
Explanation:
According to the scenario, computation of the given data are as follows,
Decrease in unexpired insurance = $400
Decrease in interest payable = $250
So, we can calculate the net income to reconcile by using following formula,
Net income = Decrease in unexpired insurance - Decrease in interest payable
= $400 - $250
= $150 ( Positive means increase)
So, net income should be increased by $150.
Economic Condition
The President &
The federal Reserve Monetary Roller
Fiscal polyester
Government
Rate
1. High Unemployment
Phase
Type of Policy
2. Mation
Phase:
Type of policy
3. Decreasing Production,
Phase:
Type of Policy
4. Prices increasing
Phase:
Type of Policy
5. Economy "overheating”
Phase:
Type of Policy
6. Business Inventories increasing
Rapidly
Phase
Type of Policy
7. Business Sales increasing
Phase
Type of Policy
8. Economy"Cooling or
Phase:
Type of policy
9. Credit and Borrowing Expanding
Phase
Type of Policy
10 Full Employment
Phase
Type of Policy
Explanation:
9. credit and borrowing expanding
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 22% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year.
Required:
What is the value of the stock today?
Answer:
$52.75
Explanation:
the discount rate for this question was not provided. the discount rate used is 10%
Value of the stock in year 1 and 2 = 0
value of the stock in year 3 = $1.25
value of the stock in year 4 = ($1.25 x 1.22) / 1.10^4 = $1.04
value of the stock in year 5 = ($1.25 x 1.22^2) / 1.10^5 = $1.16
value of the stock in perpetuality = ($1.25 x 1.22^2 x 1.06) / (0.1 - 0.06) = $49.30
Value of the stock today = $49.30 + $1.16 + $1.04 + $1.25 = $52.75
The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years, and produces after-tax cash flows equal to $44,503 per year. If the firm's required rate of return is 14 percent and its tax rate is 40 percent, what is the project's internal rate of return (IRR)
Answer:
17.37%
Explanation:
The Internal rate of return is the interest rate that gives the same present value as the amount of initial investment for
Calculation of IRR
($200,000) CFO
$44,503 CF1
$44,503 CF2
$44,503 CF3
$44,503 CF4
$44,503 CF5
$44,503 CF6
$44,503 CF7
$44,503 CF8
$44,503 CF9
$44,503 CF10
the project's internal rate of return (IRR) is 17.37%
The financial statements of Seldin, Inc., provide the following information for the current year: Dec.31 Jan.1 Accounts receivable $ 35,000 $ 40,000 Inventory $ 55,000 $ 51,000 Prepaid expenses $ 12,000 $ 14,000 Accounts payable (for merchandise) $ 33,000 $ 32,000 Accrued expenses payable $ 15,000 $ 20,000 Net sales $ 260,000 Cost of goods sold $ 130,000 Operating expenses (including depreciation of $18,000) $ 80,000 Compute the amount of Seldin's cash payments for purchases of merchandise during the current year. Group of answer choices $133,000 $125,000 $130,000 $127,000
Answer:
a. $133,000
Explanation:
Computation of inventory purchased
Beginning ($51,000)
Cost of goods sold $130,000
Ending $55,000
Purchases during the year $134,000
Computation of amount paid for purchases
Beginning payable $32,000
Purchase during the year $134,000
Ending payable ($33,000)
Cash payments for purchases of merchandise $133,000
Market testing allows products to be viewed by a focus group?*
True or false
Answer:
true
Explanation:
if you want to play kaoot the game pin is 06048390
Answer:
im the current person in 1st place
Answer:
112xjfjgjgtjjgchfjfjc
Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900. The par value of the bond is $1000. The original YTM on the bond is 10%, but the investor expects that he can reinvest the coupon payments at an annual interest rate of 7% and that at the end of the investment horizon this 10-year bond will be selling to offer a yield of 9%. What is the total return for this bond
Answer:
8.67%
Explanation:
PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40
N (No of coupons paid) = 10*2 = 20
Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%
Future value of reinvested coupons = FV(PMT, N, Rate)
Future value of reinvested coupons = FV(40, 20, 3.5%)
Future value of reinvested coupons = $1,131.19
FV = 1,000
PMT (Semi-annual coupons) = 40
N (No of coupons pending) = 10*2 = 20
Rate (Semi-annual YTM) = 9%/2 = 4.5%
Price of the bond after 10 years = PV(FV, PMT, N, RATE)
Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)
Price of the bond after 10 years = $934.96
Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years
Total amount after 10 years = $1,131.19 + $934.96
Total amount after 10 years = $2,066.15
Amount invested (Price of the bond now) = $900.
Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1
Total Annual Return = [($2,066.15/$900)^(1/10)] -1
Total Annual Return = [2.295722^0.1] - 1
Total Annual Return = 1.08665561792 - 1
Total Annual Return = 0.08665561792
Total Annual Return = 8.67%
A company reported total stockholders' equity of $163,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $21,700, declared and paid a cash dividend of $5700, declared and distributed a 10% stock dividend with a $6700 total market value, and issued additional common stock for $33,000. What is total stockholders' equity as of December 31, 2019
Answer:
$212,000
Explanation:
Stockholders' equity = December 31, 2018 stockholders'equity + 2019 net income - 2019 cash dividend declarations + 2019 common stock issue
Stockholders' equity = $163,000 + $21,700 - $5,700 + $33,000
Stockholders' equity = $212,000
So, the total stockholders' equity as of December 31, 2019 is $212,000
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience.
1. What organizational pattern would be best for this situation?
a. Be brief. Use no more than three points
b. An indirect pattern with minimal audience contact
c. Any pattern, particularly with audience involvement
2. What delivery style should you use?
a. Warm, pleasant, and open
b. Even and slow speech
c. Confident, small gestures
Answer:
c. Any pattern, particularly with audience involvementa. Warm, pleasant, and openExplanation:
As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.
The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.
Sales on open accounts are very common as a method of payment in foreign trade. generally recommended when special merchandise is ordered by the buyer. not generally recommended when there is political unrest in the importer's country. recommended when the country of the importer imposes difficult exchange restrictions. less risky for the seller when it involves new buyers.
Answer: not generally recommended when there is political unrest in the importer's country
Explanation:
Sales on open accounts are not usually recommended when political unrest exist in the country of the importer.
The instances whereby sales on open accounts are not recommended are when the trade practice involves the use of other method. Also, when there are difficult exchange challenges from the importer's country or when there's hazardous shipping. A scenario when there's political unrest can also be another factor.
10. Which of the principles of successful decision making emphasizes "buy-in" rather than consensus?
O A. Participation
B. Clarity
C. Focus on action
O D. Measure and reward
A stock's returns have the following distribution: Demand for the Company's ProductsProbability of This Demand OccurringRate of Return If This Demand Occurs Weak0.1(48%) Below average0.2(15) Average0.317 Above average0.331 Strong0.163 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio:
Answer:
Stock's expected return = 12.90%
Standard Deviation = 29.68%
Coefficient of variation = 2.30
Sharpe ratio = 0.30
Explanation:
Note: See the attached excel file for the calculations of the Stock's expected return and Variance.
Given:
Risk-free rate = 4%.
From the attached excel file, we have:
Stock's expected return = Total of Stock's Expected Return = 0.1290, or 12.90%
Variance = Total of F = 0.0880890, or 8.8089%
Standard Deviation = Variance^0.5 = 0.0880890^0.5 = 0.2968, or 29.68%
Coefficient of variation = Standard Deviation / Stock's expected return = 29.68% / 12.90% = 2.30
Sharpe ratio = (Stock's expected return - Risk-free rate) / Standard Deviation = (12.90% - 4%) / 29.68% = 0.30
On January 1, 2020, Grand Haven, Inc., reports net assets of $790,800 although equipment (with a four-year remaining life) having a book value of $452,000 is worth $520,000 and an unrecorded patent is valued at $54,900. Van Buren Corporation pays $730,960 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021
Answer:
The answer is "42700".
Explanation:
1 January 2020 Patent of Fair Value [tex]54900[/tex]
Less: 2020 and 2021 amortisation[tex]=54900\times \frac{2}{9} \ \ \ \ \ \ =12200[/tex]
December 31, 2021 Patent reported amount [tex]42700[/tex]
Which form shows a business's financial performance over a reporting period?
A. Balance sheet
B. Statement of cash flows
C. Statement of changes in equity
D. Income statement
Answer:
d
Explanation:
Income statement is the form shows a business's financial execution over a reporting period. The three part of Income statement is revenue, expenses and profit.
What is Income statement?Income statement is the statement that shoes the incomes and expenditure of the firm, and it also helps to determine whether company is going with profit or occurring loss in a specific period of time.
Income statement is identified from the cash flow statement and balance sheet of the company.
Thus, option D is correct.
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