Answer:
You will invest $18,000 in Stock F.
Explanation:
This can be calculated using the portfolio return formula as follows:
PR = (wD * rD) + (wF * rF) + (wR * rR) ............................ (1)
Where;
PR = Portfolio expected return = 10.7%, or 0.107
wD = Weight of the amount invested in Stock D = Amount invested in Stock D / Total amount invested = $50,000 / $100,000 = 0.50
rD = Expected Return from Stock D = 14.2%, or 0.142
wF = Weight of the amount invested in Stock F = Amount invested in Stock F / Total amount invested = ?
rF = Expected Return from StocK F = 10.1%, or 0.101
wR = Weight of the amount invested in risk free = 1 - wD - wF = 1 - 0.50 - wF = 0.50 - wF
rR = Expected Return from Risk free = 5.6%, or 0.056
Substitute all the values into equation (1), we have:
0.107 = (0.50 * 0.142) + (wF * 0.101) + ((0.50 - wF) * 0.056)
0.107 = 0.071 + (wF * 0.101) + ((0.50 * 0.056) - (wF * 0.056))
0.107 - 0.071 = (wF * 0.101) + 0.028 - (wF * 0.056)
0.036 - 0.028 = (wF * 0.101) - (wF * 0.056)
0.008 = wF(0.101 - 0.056)
0.008 = wF0.045
wF = 0.008 / 0.045
wF = 0.18
Since,
wF = Amount invested in Stock F / Total amount invested
We then substitute and solve for Amount invested in Stock F as follows:
0.18 = Amount invested in Stock F / $100,000
Amount invested in Stock F = 0.18 * $100,000 = $18,000
Therefore, you will invest $18,000 in Stock F.
Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets? a. $170.09 b. $179.04 c. $197.88 d. $188.46 e. $207.78
Answer:
Increase in sales= 188.46 million
Explanation:
Giving the following information:
Sales= 350 million
Fixed assests= 270 million
Used capacity= 65%
We need to determine the increase in sales that would occupy the entire capacity.
If 350 is 65% then:
Full capacity= (100*350)/65= 538.46 million
Now, the increase in sales:
Increase in sales= 538.46 - 350= 188.46 million
preferred stockholders must receive their stated dividends prior to the distribution of any earnings to common stockholders and bondholders true false
Answer: False
Explanation:
While it's is true that Preferred Shareholders should receive their stated dividends before Common Shareholders do, the same cannot be said for Bondholders.
Bonds are a type of debt and as such get preferential treatment to a company's income. Bond interest is paid before any dividend to any class of shareholders. Even in the event of a Liquidation, Bond holders are paid first before Preferred Shareholders.
A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be
Answer:
the constant debt-equity ratio is 2.580
Explanation:
Given:
dividend payout ratio of 66 percent= 0.66
Sustainable Growth rate of 9 percent = 0.09
profit margin is 8.1 percent= 0.081
total assets to sales is constant at 1
We need to calculate the Retention Ratio first,
which gives the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It can be calculated using below expression,
Retention Ratio = 1 - Dividend pay-out ratio
Retention Ratio = 1 - 0.66 = 0.34
ROE i.e the return on equity which is a measure of the profitability of a business in relation to the equity can be calculated as;
Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)
0.09 = (ROE * 0.34/(1 - ROE*0.34)
0.09 (1 - 0.34ROE) = 0.34ROE
0.09 - 0.0306ROE = 0.34ROE
0.3094ROE = 0.09
ROE = 0.09/0.3094
ROE = 0.290 or 2.90%
debt-equity ratio can now be calculated as;
Return on Equity = Profit Margin×Total Assets to sales ratio×(1+D/E)
0.290 = 0.081*1*(1+D/E)
1 + D/E = 0.290/0.081
1 + D/E = 3.580
D/E = 3.580 - 1 = 2.580
Therefore, the constant debt-equity ratio is 2.580
Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
A. True
B. False
Answer:
False
Explanation:
Answer:
False
Explanation:
financing activities are business transactions that are used to fund either company operations or the business expansion expansions.
Some examples of financial activities includes:
1. Borrowing and paying back short-term loans.
2. Borrowing and paying back long-term loans.
receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks are not financing activities.
Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $320,000 $300,000 Income before income tax expense 3,200,000 3,600,000
Determine the number of times interest charges are earned current year and the prior year.
Answer:
Current year=11 times
Prior year=13 times
Explanation:
Calculation for Determining the number of times interest charges are earned current year and the prior year
Using this formula
Times interest earned ratio= Income before Tax expense + Interest expense/Interest expense
Calculation for CURRENT YEAR
Current year =($3,200,000+$320,000)/$320,000
Current year =$3,520,000/$320,000
Current year=11 times
Calculation for PRIOR YEAR
Prior year=($3,600,000+$300,000)/$300,000
Prior year=$3,900,000/$300,000
Prior year=13 times
Therefore the number of times interest charges that are earned in current year will be 11 times and prior year will be 13 times .
On January 1 , a company borrowed $70000 cash by signing a 9% installment note that is to be repaid with 4 annual-end payment of $21607. While the amount borrowed equals $70000 , the total payment on this note amount to $86428. Explain
Answer:
86,428 - 70,000 = $16,428
This difference of $16,428 refers to the 9% interest that was paid over the 4 years. However, the 9% is only charged on the amount that is owed whch reduces every year by a principal repayment which also comes out of the $21,607.
Year 1
Payment = $21,607
Interest = 9% * 70,000 = $6,300.
Principal repayment = 21,607 - 6,300= $15,307
Amount left to be paid = 70,000 - 15,307 = $54,693
Year 2
Payment = $21,607
Interest = 9% * 54,693 = $4,922.37
Amount left to be paid = 54,693 - (21,607 - 4,922.37) = $38,008.37
Year 3
Payment = $21,607
Interest = 9% * 38,008.37 = $3,420.75
Amount left to be paid = 38,008.37 - (21,607 - 3,420.75) = $19,822.12
Year 4
Payment = $21,607
Interest = 9% * 19,822.12 = $1,783.99
Amount left to be paid = 19,822.12 - (21,607 - 1,783.99) = $0
Interest Year 1 - 4 = 6,300 + 4,922.37 + 3,420.75 + 1,783.99
= $16,427.11 (difference due to rounding errors)
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.
Cash $ 11,360 Cash dividends $ 2,000
Accounts receivable 14,000 Consulting revenue 14,000
Office supplies 3,250 Rent expense 3,550
Land 46,000 Salaries expense 7,000
Office equipment 18,000 Telephone expense 760
Accounts payable 8,500 Miscellaneous expenses 580
Common Stock 84,000
Preparing a statement of cash flows LO P2 Also assume the following:
The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. The company’s $18,000 equipment purchase is paid in cash. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,000 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answer:
Required:
Prepare an October 31 statement of cash flows for Ernst Consulting.
________________________________
ERNST CONSULTING
Income Statement
For month ended October 31
Revenues:
Consulting fees $14,000
Total revenue: $14,000
Expenses:
Salary expense: 7,000
Rent expense: 3,550
Telephone expense: 760
Miscellaneous expenses: 580
Total expenses: 11,890
Net income: 2,110 (14,000 - 11890)
_____________________________
_______________________________________
ERNST CONSULTING
Statement of Retained Earnings
As of October 31
Retained earnings Oct, 1: $0
Add: Net income $2,110
$2,110
Less: Dividends - $2,000
Retained earnings October 31: $110(2,110 - 2,000)
________________________________
suppose that the manager of a firm operating in a perfectly competitive market average variable cost reaches its minimum value at
Complete Question:
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 - 0.0024Q + 0.000006Q^2 Fixed costs are $500.
Requirement:
Average variable cost reaches its minimum value at___ units of output, and the minimum value of average variable cost is $___
Answer:
Average variable cost reaches its minimum value at 200 units of output, and the minimum value of average variable cost is $3.76.
Explanation:
To find the Average Variable Cost we will have to calculate quantity and for that sake we will first of all find the point of intersection of AVC and MC to find the Quantity "Q".
So
AVC * Quantity = Total Variable Cost + Total Fixed Cost
Here
AVC = 4.0 - 0.0024Q + 0.000006Q^2
Fixed costs are $500
Total Variable Cost is TVC
Quantity is Q here
By putting values, we have:
(4.0 - 0.0024Q + 0.000006Q^2) * Q = TVC + 500
4Q - .0024Q^2 + .000006Q^3 = TVC + 500
By rearranging the above formula, we have:
TVC = 4Q - .0024Q^2 + .000006Q^3 - 500
By applying derivation rules, we have:
dTC/dQ = 4 - 0.0048Q + 0.000018Q^2
Now this equation is Marginal cost equation.
At the point of intersection of AVC and MC, both equations will equal to each other and thus we can find Q.
Mathematically,
4 - 0.0024Q + 0.000006Q^2 = 4 - .0048Q + .000018Q2
Cancelling 4 on both sides, and netting off the equation, we have:
0.0024Q = .000012Q2
1 = .000012Q2 / 0.0024Q
1 = 0.005Q
Q = 1/ 0.005 = 200 Units
By putting value of Q in AVC equation given above, we have:
AVC = 4 - 0.0024*200 + 0.000006*(200)^2
AVC = 4 - 0.48 + 0.24 = $3.76
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.
Answer:
$31,000
Explanation:
Calculation for the cash received from Dividend
Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable
Hence,
Using this formula
Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable
Let plug in the formula
= 3,100+32,300-4,400
=31,000
Therefore the amount of cash received from dividend will be $31,000.
Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.
can anyone plzzzz help me 5 concepts of marketing and its explanation.. i ll give 5 stars nd i ll mark them as brainlist..
Answer:
1. production concept, 2. product concept, 3. selling concept, 4. marketing concept, and 5. societal marketing concept.
Explanation:
So marketing is a department of management that tries to design strategies that will help build profitable relationships with other consumers.
Explanation:
5 Essential Marketing Concepts You Should Know
HELLO where are you from and how old are you me 21 from Phillippines
The Production Concept.
The Product Concept.
The Selling Concept.
The Marketing Concept.
The Societal Marketing Concept.
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder
Refer to Fact Pattern 14-2. Nat properly presents the note to Jake for payment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from
a. Kim, Lou, or Mona.
b. Kim or Lou only.
c. Mona only.
d. no one
Answer:
it's Jake, Kim, or Lyron or basically the first one but yours appears to be different
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
The study of economic growth concentrates on understanding the determinants of the: Group of answer choices change in per capita GDP over time.
Answer:
the long term change in per capita GDP
Explanation:
please find attached the full question.
economic growth is the persistent rise in the amount of goods and services produced by an economy, it is the increase in the level of wealth of an economy overtime.
Per capita GDP = GDP / population
it is the GDP per person.
by understanding the factors that lead to long term changes in per capita GDP, one can determine what causes economic growth
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
Steve worked as a tech supervisor for a computer company. In September of 2016, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?
a. Steve will have to report all $7,000 of the unemployment compensation as income.
b. Steve will have to report $4,600 of the unemployment compensation as income.
c. Unemployment compensation is never taxable.
d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.
Answer:
The answer is A.
Explanation:
Unemployment compensation is a benefit paid to people who lost their job via laid off, recession etc
Unemployment compensation is being reported or treated as income and it will be taxed at prevailing income tax rate.
So in the light of the above, option A is correct. The $7,000 unemployment compensation will be reported as income.
In each of the following independent situations, determine the dividends received deduction for 2018. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying the dividends.
Almond
Corporation Blond
Corporation Cherry
Corporation
Income from operations $700,000 $800,000 $900,000
Expenses from operations (600,000) (800,000) (910,000)
Qualifying dividends 100,000 100,000
100,000
a. The dividends received deduction for Almond Corporation is $
b. The dividends received deduction for Blond Corporation is $
c. The dividends received deduction for Cherry Corporation is $
Answer:
a. The dividends received deduction for Almond Corporation is
$ 50,000
b. The dividends received deduction for Blond Corporation is
$ 50,000
c. The dividends received deduction for Cherry Corporation is
$50,000
Explanation:
If a company owns less than 20% of the outstanding stock from another corporation, its DRD = 50% of the dividends received.
If a company owns 20% or more, but less than 80% of the outstanding stock from another corporation, its DRD = 65% of the dividends received.
If a company owns 80% or more of the outstanding stock from another corporation, its DRD = 100% of the dividends received.
"Our goal is to make add-on sales during 85% of sales. If you make35 sales. How many add-0n sales do you need to make to meet the goal
Answer:
30
Explanation:
Add-On Sales Goal =85% of Sales
If there were a total of 35 sales, in order to meet the goal, we would require to make an add-on sales during 85% of 35 sales.
Now:
85% of 35=0.85 X 35
=29.75
This is approximately 30.
Therefore, you would need to make 30 add-on sales to meet the goal.
Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –1.8, and the price of parking is $7 per day. Additionally, suppose that your MC is zero, and your capacity has been 80% full at 9 AM each day over the last month. Since demand is______, and the lot is below capacity,________is the optimal pricing strategy.
Answer:
ELASTIC
DECREASING PRICE
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
The demand for your parking lot spaces is elastic. if the price of parking is reduced, the demand for parking would rise
ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
Answer:
Debit Cash account $71,250
Debit Factoring charge $3,750
Credit Accounts receivable $75,000
Explanation:
Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.
When receivables are factored,
Debit Cash account
Debit Factoring charge
Credit Accounts receivable
Charge on factoring = 5/100 × $75,000
= $3,750
Amount to be received = $75,000 - $3,750
= $71,250
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.
Answer:
Scarlet Knight Corporation
Posting of transactions:
1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500
Wrong. Correct Posting: Cash 5,500 Common Stock 5,500
2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100
Correct.
3. Purchase office supplies on account, $110. Supplies 110 Cash 110
Wrong. Correct Posting : Supplies 110 Accounts Payable 110
4. Pay $410 for next month's rent. Rent Expense 410 Cash 410
Wrong. Correct Posting: Rent Prepaid 410 Cash 410
5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Wrong. Correct Posting: Equipment 1,250 Cash 1,250
Explanation:
1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.
2. 2. Receive cash of $2,100 for services provided in the current period.
Cash is increased and Service Revenue increased by the same amount.
3. Purchase office supplies on account, $110.
No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.
4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.
5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.
You need to make 9
servings of roast beef gravy.
Each serving takes 1 quart
of brown stock.
How many quarts of brown
stock do you have to make?
Answer:
Answer:
9/4 = 2 1/4 = 2.25
Explanation:
1 serving = 1/4 brown stock
9 servings = x brown stock
Do cross mutliplication and divide:
(9 x 1/4) ÷1
9/4 = 2 1/4 = 2.25
PLEASE HELP ASAP!
Which example is an investment commodity? (Select the best answer.)
steel
shares in a company
microfinancing
a rare painting
Which option allows you to pool your money and invest in a portfolio with other investors? (Select the best answer.)
a 529 plan
an IRA account
a mutual fund
a 401(k) plan
Which piece of information is typically included in a stock listing? (Select the best answer.)
the predicted price of the stock over the next year
the company's SEC registration credentials
the number of shares of stock sold in a previous day
the number of shares of stock sold in the previous year
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select the best answer.)
capital gains
dividends
interest
equity gains
Answer:
1. Steel
2. A Mutual Fund
3. The number of shares of stock sold in a previous day
4. Capital Gains
Explanation:
1. Investment commodities are investments in raw materials or primary goods that are still to be processed such as Agricultural produce and precious metals. Steel falls under this category.
2. A Mutual Fund works by pooling the resources and monies of various people and then investing it in various companies as a single portfolio. This way even though your funds might be little, you can still be able to diversify investments and make a good return.
3. When stock is listed for sale on a particular day, its trading figures for the previous day are listed as well.
4. Capital gain is a way to gain a return when the value of your investment has increased. When you sell that asset at the new price which is higher than the price you bought it, you make a capital gain on the transaction. For instance, R. Taylor bought stock for $100 in 2005 and it is now selling at $900 and Taylor sells it, Taylor now has a capital gain of $800.
Art purchased 2,500 shares of Delta stock. His purchase represents 10 percent ownership in the firm. His shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share. Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets. What is the maximum loss per share Art will incur on this investment
Answer: $12
Explanation:
From the question, we are informed that Art purchased 2,500 shares of Delta stock and his purchase represents 10 percent ownership in the firm. We are further told that his shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share.
Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets, the maximum loss per share Art will incur on this investment will be the purchase price per share which was given in the question as $12.
This is because when a firm guess bankrupt, the maximum loss which will be incurred by Art will be the value of his investment which is $12.
When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
Answer:
Comparability
Explanation:
Comparability is a characteristic of the information presentation of accounting information. It is required that the use of standardized accounting principles aid in making the accounts of two different enterprises to be compared to enable decision making among investors or for the allocation of investible resources. Without this comparability it becomes difficult to determine where resources would be put. Comparability can also be applied with the same company when it is able to compare its performance from one period to the other. This is also enabled by the use of standardized principles which have been consistently applied.
In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very beautiful and fragile. Everyone agreed that the shells were valuable and the people utilized them in much the same way we use money today. The fragility of the shells and the fact that a shell is difficult to split into smaller denominations would make these sea shells unfit to act as money today because sea shells could not act as a ________.
Answer:
store of value
Explanation:
Based on this information it can be said that seashells would be unfit to act as money because they could not act as a store of value. Money needs to be easily divisible and storable in order for it to be used as a medium of exchange. This also allows money to easily measure the value of a certain good or service. Therefore, since seashells cannot be stored since they are very fragile and cannot be divided then they would not be fit as money.
The journal entry to record the transfer of units from Process 1 to the Process 2 in process costing is:
Debit - work in process inventory 2 and Credit - work in process inventory 1.
What is work in process?Work in process is the accounting method of costing which is used in manufacturing where units are continuously produced in large quantities through one or more processes.
It keeps the track of the number of units passing through the production process during a given period of time.
Basically, work-in-progress (WIP) refers to the goods that are partially completed.
Learn more about work in process here:-
https://brainly.com/question/14756495
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If marijuana were legalized, it is likely that there would be an increase in the demand for marijuana. If demand for marijuana is inelastic and the supply of marijuana is perfectly elastic, this will result in Group of answer choices higher prices and higher total revenue from marijuana sales. higher prices but lower total revenue from marijuana sales. the same price and higher total revenue from marijuana sales. the same price but lower total revenue from marijuana sales.
Answer:
The correct answer is the first option: Higher prices and higher total revenue from marijuana sales.
Explanation:
To begin with, the fact that the demand would be inelastic would implicate that no matter how much the price rises the variation in the amount of quantity demand would be minimun so that would means that if the price increases then the consumers will keep buying the product and that is why that the total revenue will increase overall. Moreover, if the supply of the product is totally elastic then that would means that the sellers would try to offer the product as much as they can and they would be influenced by the demand as well.
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$363,000debit Allowance for uncollectible accounts 580debit Net Sales 808,000credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$4,848 will be the amount that should be debited to Bad debts expense when the adjusting entry is being prepared for the year end.
Explanation:
Since the company uses percentage of sales method for calculating bad debt, it therefore means that the bad debt expense for the year will not be charged from the opening balance of allowance for uncollectible accounts but will be charged as Net credit sales × percentage of uncollectible from credit sales.
Therefore, bad debt for the period is charged as Net credit sales × Percentage of uncollectible from credit sales
= $808,000 × 0.6%
= $4,848
Therefore, the adjusting entry for bad debt expenses at year end is;
Bad debt expense Dr $4,848
Allowance for uncollectible accounts Cr $4,848
An investor has a long-term investment time horizon, no liquidity needs and is very risk averse. Your main concern when making a recommendation to this client is:
Answer:
Safety of principal
Explanation:
PRINCIPAL
SAFETY OF PRINCIPAL is the probability or likelihood that the main money invested or the money which was paid for a specific investment will be returned to the investor.
Secondly SAFETY OF PRINCIPAL help to give the assurance that a person's or an individual principal or their initial investment will tend to remain the same over the life of the investment or period of the investment which is why Safety of principal can be achieved by carefully carryingout the review of both the economic and industrial trends before deciding to choose what type of investment to go for.
Therefore if an investor has a long-term investment time horizon in which their is no liquidity needs and is very risk averse.
My main concern when making a recommendation to this client is: SAFETY OF PRINCIPAL.
When Teresa talks about communicating with her employees, she says, "Now I write the emails and I save them. And then in the morning I shoot them all out." Teresa’s emails are an example of
The question is incomplete. The complete question is:
When Teresa talks about communicating with her employees, she says, “Now I write the e-mails and I save them. And then in the morning, I shoot them all out.” Teresa’s e-mails are an example of downward communication. This form of communication might not be effective with:
A. Gen-X employees
B. Baby Boomer employees
C. Gen-Y employees
Answer:
C. Gen-Y employees
Explanation:
Generation Y refers to the generation of people that were born between the early 1980s and the early 2000 and Gen-X refers to the people born from 1965 to 1980.
The downward communication might not be effective with Gen-Y employees because Gen-Y has is a technological youth and founds themselves more independent, so when Teresa addresses 'I', Gen-Y can get offended and it may question their ability.
Hence, the correct answer is C. Gen-Y employees.