On June 19 the accounts receivable should be recorded at the spot rate: $228,190 ($190,000 Euros * $1.201), which is the rate at which the Euro and the US Dollar were being exchanged at the time.
Many US-based enterprises sell goods to companies abroad. Depending on the discussions and the circumstances surrounding the sale, these sales may be made in US dollars or in another currency. If the sale is made in a foreign currency, the US-based company will be responsible for any fluctuations in the exchange rate from the time the sale and receivable are recorded until the time the foreign currency is paid for the related foreign currency-related receivable.
The accounts receivable should be recorded (converted from Euros to US Dollars) at the spot rate on June 19: 190,000 Euros * $1.201, which is the exchange rate at that time between the Euro and the US Dollar, equals $228,190.
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Answer:
The price of the bond is $1000. Thus, option a is the correct answer.
Explanation:
The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.
The formula for the price of the bond is attached.
Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025] + 1000 / (1+0.025)^8
Bond Price = $1000
Answer:
The answer is (B) transfer dollars, and therefore purchasing power, into the future.
Explanation:
A store of value is best described as a function contained in an asset that allows it to be saved, retrieved, and traded in the future. Money provides this function, alongside other forms of assets such as bonds, gemstones, and precious metals. Other functions of money, include as a medium of exchange and a unit of account.
The answer to this question is 30/100*$50,000 = $15,000 remains on the balance sheet at the end of the year.
The $ 1200 paid for advertisement is not included in the cost of inventory.
<span>Cost of inventory=cost of inventory+ any other cost needed to get inventory in place of sale.</span>
Answer:
1) Colt Carriage Company
Income Statement
For the month ended April 202x
Revenues:
- Adults passengers $186,300
- Children $81,000
- Total revenues $267,300
Variable costs:
- City fees $26,730
- Souvenirs $7,425
- Brokerage fees $11,340
- Carriage drivers $52,650
- Total variable costs <u>$98,145</u>
Contribution margin $169,155
Period costs:
- Depreciation $2,900
- Horse leases $48,000
- Marketing expenses $7,350
- Payroll expenses $7,600
- Total period costs <u>$65,850</u>
Operating profit $103,305
2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.
Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.
Explanation:
since the information is not complete, I looked it up:
Revenues
13,500 passengers:
8,100 x $23 = $186,300
5,400 x $15 = $81,000
total $267,300
variable costs:
fees paid to the city 10% of total revenue
souvenirs $0.55 per passenger
brokerage fees 60% of total tickets x $1.40
carriage drivers $3.90 per passenger
fixed costs:
depreciation $2,900
horse leases $48,000
marketing expenses $7,350
payroll expenses $7,600