Answer:
d. buyback
Explanation:
The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.
Answer:
$132,400
Explanation:
Calculation for the Insurance expense
Using this formula
Insurance expense= 2017 Ending Balance in prepaid insurance account+ Amount paid for insurance-2018 Ending Balance in prepaid insurance account
Let plug in the formula
Insurance expense=$68,400+$106,000-$42,000
Insurance expense=$132,400
Therefore the Insurance expense recorded 2018 would be $132,400
Answer:
Jill cannot hold the manufacturer responsible for her injury.
Explanation:
The above question is incomplete as there are several answer options which are listed below;
• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got
• Jill can hold the manufacturer liable for her injury
• Jill cannot hold the manufacturer responsible for her injury
• Lexi can hold the manufacturer liable for Jill's injury.
The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.
With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.
Answer:Cost of Goods Sold =$29,300
Explanation:
Cost of goods sold refers to the costs (direct costs) a business incurs in the production of goods sold by a company. it is calculated as
Cost of goods sold =Cost of manufactured Goods + Beginning finished goods inventory - Ending finished goods inventory
Cost of Goods Sold = $32,500 + $14,600 - $17,800
Cost of Goods Sold =$47,100- $17,800
Cost of Goods Sold =$29,300
Answer:
Explanation:
1)
dividend at (t = 1) given = 3.5
dividend at (t = 2) = 3.5 *(1 - 0.3) = 2.45
dividend at (t = 3) = 2.45*(1 - 0.3) = $1.715
so dollar amount of dividend at (t = 3) = $1.715
2)
value of the stock = present value of future dividends discounted at cost of capital(20%)
continuous value = dividend at (t = 3)[1+ growth] / K - g
= 1.715(1+3%) / 0.2 - 0.03
= 10.39
share price = 3.5 / (1.2) + 2.45 / (1.2)^2 + 1.715 / (1.2)^3 + 10.39 / (1.2)^3
= $11.62
3)
worth of the share as per calculation is $11.62 only. $11.75 is over priced so it is not recommended to buy
in case of 10% cost of capital
continuous value = dividend at (t = 3)[1+ growth] / K - g
= 1.715(1+3%) / 0.1 - 0.03
= 25.235
share price = 3.5 / (1.1) + 2.45 / (1.1)^2 + 1.715 / (1.1)^3 + 25.235 / (1.1)^3
= $25.45
since offer price of $11.75 is less than calculated value, we can buy the share.
