<span>Clarion should expect to recognize interest revenue on their CD both on December 31st 2015 and May 1st 2016. They will receive it in December thanks to end of your returns and then it will pay out its full amount 6 months from the purchase date which is on May 1st of 2016.</span>
Answer: 1.29
Explanation:
The following can be deduced from the question:
EBIT = $375000
Interest expense = $75000
EBT = EBIT - Interest Expense
= $375000 - $75000
= $300000
Before tax preference dividend
= Preferred dividend / (1 - Tax rate)
= 6000 / (1 - 40%)
= 6000 / 60%
= 6000 / 0.6
= $10000
The firm's degree of financial leverage will then be:
= EBIT / (EBIT - Interest expense - Before tax preference dividend)
= 375000 / (375000 - 75000 - 10000)
= 375000 / 290000
= 1.29
Therefore, the firm's degree of financial leverage is 1.29.
Mattel, Inc. selects suppliers and obtains raw materials to make toys. The company is engaged in which function of marketing? Buying.
Mattel, Inc is in the buying process of marketing because they are finding suppliers to buy materials from for their products. Companies use other companies' products to finalize their product or service. They rely on other people to manufacture items for them they can use to produce and sell their item.
Answer:
The Journal entry are as follows:
(i) On January 2, 2017
Accounts receivable A/c Dr. $381,000
To Sales revenue $342,000
To unearned service revenue $39,000
(To record the sale of goods)
(ii) On January 2, 2017
Cost of goods sold A/c Dr. $293,000
To Inventory A/c $293,000
(To record the cost of goods sold)