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8_murik_8 [283]

1 year ago

7

In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received

a payment of $100,000 from this customer for products to be delivered in February. Revenue regarding this transaction is recognized:

1 answer:

REY [17]1 year ago

6 0

Answer: In January, when the products are delivered.

You might be interested in

What is an antonym for delicate?

MAXImum [283]

A antonym for delicate could be firm

8 0

3 years ago

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would

IgorLugansk [536]

Answer:

With mitigation: NPV =$36,670,000, IRR= 15,24%

Without mitigation: NPV= $ 42,000,000, IRR= 19,86%

Explanation:

To calculate the Net Present Value (NPV) we have to sum the present value of a project´s cash flows (positive and negative cashflows). To do so, we need: the number of periods of the project, the discount rate, cost of captal or WACC, and the future values of the cash flows. Then we apply the formula attached.

To calculate the Internal Rate of Return (IRR) we have to find the discount rate, cost of capital or WACC that makes the NPV equal to cero. That means we have to find a rate in which the investor do not create or destroy value, only recovers the investment. I attached the formula.

But, this is better if we use excel:

First we copy the cash flows of the two projects. To find the NPV we use the financial formula "NPV" in this way:

"=NPV(rate;cash flows from year 1 to year 5)+ cash flow of year 0"

To find the IRR we use the financial formula "IRR" in this way:

"=IRR(cash flows from year 0 to year 5)"

I attached the excel figure.

6 0

3 years ago

A monopolist sells 2,000 units for $20 each. The total cost of 2,000 units is $30,000. If the price falls to $19, the number of

leonid [27]

Answer:

Decrease by $1

Explanation:

Given:

Old data:

Q0 = 2,000 units

P0 = $20

Total revenue before change = 2,000 x $20 = $40,000

After change in Price.

Q1 = 2,100 units

P1 = $19

Total revenue After change = 2,100 x $19 = $39,900

Computation of Marginal Revenue:

Marginal Revenue = (P1 - P0) / (Q1 - Q0)

= ($39,900 - $40,000) / (2,100 - 2,000)

= -100 / 100

= $(-1)

Marginal revenue will decrease by $1

8 0

3 years ago

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

<u>Cash flow $30,000</u>

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

3 years ago

Initial margin requirements are determined by:________

Goryan [66]

Answer:

b. the Federal Reserve System.

Explanation:

Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.

For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.

The initial margin limit is fixed by the Federal Reserve System.

3 0

3 years ago