Answer:
You would pay approximately $35.00 today
Explanation:
The cost of the stock at the beginning of the year 20
= 20/9.75%
= 20/0.0975
= 205.13 dollars
We find the current price of the stock
= Fv/(1+r)^n
= 205.13/(1+9.75%)¹⁹
= 205.13/1.0975¹⁹
= 205.13/5.86
= $35.00
From this calculation you have to pay 35 Dollars today.
Answer:
formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
In contract, outward expressions refers to a situation when both parties has directly communicate the terms of a certain transaction and agreed upon it.
The contract is considered as 'valid' and considered to be a verbal agreement as soon as Rachel proposed a price and Julius agreed upon it.
One thing to remember, Even though this contract is considered as valid , it would be hard for Julius to held Rachel accountable to court since he has no way to proof that the verbal agreement has been made.
Answer:
Shopping products
Explanation:
Shopping products usually involves the customer doing comparison shopping as customer like to compare price, quality, offers, discounts etc. There are several websites which help the customer in comparing the products available of various brands and then buying the product. It is helpful in making smart purchase and buying the products which are worth for the money spent. It give complete analysis of product quality and price.
Answer:
a. Overstates Year 1 cost of goods sold.
b. Understates Year 1 net income
c. Understates Year 2 cost of goods sold
Explanation:
a. The formula for Calculating the Cost of Goods sold is;
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.
b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.
c. Going by the formula in <em>a;</em>
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.
