Answer:
Cash collections for October are $174,600
Explanation:
The following information are given for the amounts collected on sales:
month of sale = 55%
month following sale = 35%
second month following sale = 7%
sales uncollectible = 3%
For the month of October, the cash collections will be from July and October sales.
From July sales
October is the month following July sales, therefore, 35% of the sales from July will be collected in October.
July sales = $205,000
percentage collected in October = 35% = 35/100 = 0.35
∴ cash collected in October from July sales = 0.35 × 205,000 = $71,750
From October sales
55% of sales is collectible in the month of sales
Sales in October = $187,000
55% = 55/100 = 0.55
∴ cash collectible from October sales = 0.55 × 187,000 = $102,850
∴ Total cash collections in October = cash from July sales + cash from October sales
= 71,750 + 102,850 = $174,600
Answer: Tangshans required rate of return according to CAPM= 3+1.2*(8-3)
R=9%
Intrinsic Value= 5.5*1.05/0.09-0.05= $144.375
Stock is Overvalued as its intrinsic value is $144.375 but it is selling in the market for $160
Explanation:
Answer: LinkedIn.
Explanation:
LinkedIn is a website created strictly for business related activities such as: job advertisement, job application services, business adverts and messaging services (for interaction between businesses and business and consumers of products).
Answer:
If Jack bought 21 DVDs last year when his income was $30,000 and he buys 23 DVDs this year when his income is $35,000, then his income elasticity of demand is <u>0.571</u> which means that DVDs are a(n) <u>normal </u>good for Jack.
Explanation:
Ei = ⌂Q/Q /⌂I/I
⌂Q = 23-21 = 2
⌂I = 35000-30000 =5000
I = 30000
Q=21
Ei=⌂Q/⌂I * I/Q = 2/5000 * 30000/21 = 2*6/21 =12/21 = 0.571
The income elasticity of demand is 0.571
Cost volume profit shows the relation between sales volume, price and costs, these three factors affects the profit of company. Such CVP analysis used in decision making for the company. Profit volume(PV) ratio is one of the ratio from CVP analysis. PV ratio is the ratio between Contribution and sales of the company.
For example:- Let's say Sales of the company is $10,000,000 and variable cost = $3,585,000
Contribution will be Sales-variable cost = $10,000,000 - $3,585,000 = $6,415,000
PV ratio = Contribution/sales *100 = $6,415,000 / $10,000,000 * 100 = 64.15%
Here in this example, PV ratio of 64.15% is the contribution before fixed cost that a company has earned from its sales.
Break Even Analysis:-
Break even analysis show the situation where the company is at zero profit situation, means no profit no loss situation. Break even analysis or the break even point is the point that given the level at which company earns no profit or incurred no loss. Break even point is one of the analysis that comes under Break even analysis. Break even analysis is the ratio between fixed cost and PV ratio (%) of the company.
For example;- Let's say in the above example Fixed cost of the company is $1,300,000 and PV as calculated in the above example is 64.15% , Break even point will be Fixed cost / PV ratio = $1,300,000 / 64.15% = $2,026.500. This is the point where company is at zero profit/loss situation means company incurred no loss and earned zero profit.
