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Answer:
C. Estimated Warranty Payable for $15,900
Explanation:
The journal entry is shown below:
Warranty expense $15,900
To Estimated warranty liability $15,900
(Being the warranty expense is recorded)
The computation is shown below:
= Monthly sales × estimated given percentage
= $530,000 × 3%
= $15,900
We simply debited the warranty expense as it increases the expenditure and credited the liabilities as it also increases the liabilities account
“However, amid ongoing socio-political concerns and consumers' disposable income under pressure, what South Africa needs now is an injection of confidence that will stimulate the economy and drive investment. ... Consumer confidence has been dented as household finances have had to adjust to reduced disposable income.
Answer:
beta = 1.64
Explanation:
in order to calculate beta, we can use the cost of equity formula:, but instead of cost of equity we can use expected return:
expected return = risk free rate + (beta x market risk premium)
11.2% = 3% + (beta x 5%)
beta x 5% = 11.2% - 3% = 8.2%
beta = 8.2% / 5% = 1.64
in order to calculate beta, we can use the cost of equity formula:
