Salt was the mineral that the afar men occasionally mined as a trade good.
Answer:
<em>Value of the stock in four years: $22.69</em>
Explanation:
We use the gordon model to sovle for the intrinsic value (fair value) of the share according to their future cash flow:
the formula uses next year dividends so we need to calcualte:
2.70 x 1.024 = 2,7648
Now we can solve for the value of the stock:
g = 0.024
r = 0.158
Present Value = 20.63283582
That is the value of the stock today.
Now we apply the grow factor for the next four year:
Principal 20.63283582
time 4.00
rate 0.02400
<em>Amount 22.69</em>
Answer:
Debit to Bad Debt Expense Account for $7,200
Explanation:
Based on the information given we were told that the company accounts receivable shows the estimate of uncollectible receivables of the amount of $7,900 which means that if the Allowance for Doubtful Accounts has an amount of $700 as a credit balance, the adjustment to record the bad debt expense will be :
Debit to Bad Debt Expense account for the amount $7,200 calculate as :
Uncollectible receivables totals $7,900-Allowance for Doubtful Accounts $700 =$7,200
(7,900 - 700 )
Answer:
Net Purchases = Cost of goods sold - Decrease in Inventory
= $308,000 - $16,500
= $291,500
Cash paid to Suppliers = Net Purchases + Decrease in accounts Payable
= $291,500 + $13,500
= $305,000
The summary entry is as follows:
Merchandise Inventory A/c Dr. $291,500
Accounts payable A/c Dr. $13,500
To cash $305,000
(To record the amount of cash paid to merchandise suppliers during 2018)
D. the benefits that result from the activity exceed the costs
