Answer:
The amount of cash received is $2940
Explanation:
The cash received by Syfy on July 24 will be for the amount due after accounting for sales return by Eureka and after deducting the sales discount / discount allowed.
The balance in accounts receivable account of Syfy after sales return by Eureka on July 20 will be, 5000 - 2000 = $3000
The payments terms allow a 2% discount if payment is made within 10 days of purchases. Eureka paid within the discount period thus it availed a discount of,
3000 * 0.02 = $60
The amount of cash received by Syfy is = 3000 - 60 = $2940
Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Answer:
The market value of equity should be used.
Explanation:
Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.
So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.
Answer:
$112,500
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation expense in year 1 = 2/4 x $450,000 = $225,000
Book value at the beginning of year 2 = $450,000 - $225,000 = $225,000
Depreciation expense in year 2 = 2/4 x $225,000 = $112,500
