Answer:
Increase in Substitute good price , Decrease in Complementary Good price, Fall in Income , Taste & preferences change in favour of good.
Explanation:
Demand is the ability & willingness of consumer to buy a product at a price , period of time.
There are four factors affecting Demand with following relationships with it : Price of Good (inversely related) , Price of related goods (substitutes-directly related) & (complements-inversely related), Income (directly related) , Taste & preferences (depends).
Any Change in 'Quantity Demanded' due to change in good's own price leads to movement on the demand curve (contraction or expansion). Any 'Change in Demand' due to factors other than price shifts the demand curve (rightwards or leftwards).
So : Increase in substitute good's price (eg- tea) price makes coffee relatively cheaper, Decrease in complementary good's price (eg - sugar/milk) makes coffee altogether cheaper, taste & preference change in favour of coffee consumption (eg- people learning advantages of caffaine consumption). All these mentioned Increase the Demand for coffee & shifts its curve rightwards.
Answer:
Part a
Debit : Accounts Receivable - Vargas Co. $148,600
Debit : Cost of Sales $89,160
Credit : Sales Revenue $148,600
Credit : Merchandise $89,160
Part b
Debit : Freight Expenses $2,100
Credit : Cash $2,100
Part c
Debit : Cash $133,740
Debit : Discount allowed $14,860
Credit : Accounts Receivable - Vargas Co. $148,600
Explanation:
A corresponding cost of sales must be recorded each time a sale is made. The freight costs are company costs for Sievert Co. and will be expensed in the income statement.
The payment due is at 90 % after the discount of 10% given that the payment is made within the credit term of 30 days.
Answer:
7.74%
Explanation:
The yield to call would be the internal rate of return considering the cahsflow until the bodn is called. W can solve for that using excel IRR function;
We list the cashflow in order.
F0 -1180
F1 105
F2 105
F3 105
F4 105
F5 1205 (105 coupon payment plus 1100 principal)
We now write the function and get the YTC
=IRR(B1:B6) 7.7366%
Answer:
Explanation:
Base on the scenario been described in the question, Molander can only recover against the assets of the limited
partnership and its corporate general and limited partners. He cannot recover against Calvin
Raugust personally. Under limited partnership law, a limited partnership is liable on its own
contracts; in addition, the general partner is individually liable for the debts and obligations of a
limited partnership. Limited partners may be held liable for the obligations of the limited
partnership if the limited partnership has been defectively formed. Otherwise, limited partners’
liability is limited to their capital contribution to the limited partnership.
Answer:
entire initial investment will not be recovered.
Explanation:
Payback period is one of the methods used in capital budgeting.
Payback period calculates how long it takes for the amount invested in a project to be recovered from its cummulative cash flows.
For example, if a project costs $360 and the cash flow each year for its 6 years useful life is $120. The amount invested would be gotten back from the cummulative cash flow in 3 years.
But if a project costs $360 and the cash flow each year for its 2 years useful life is $120. The amount invested would never be gotten back the cummulative cash flow. Therefore, the entire investment amount will never be entirely recovered.
The project will always not be profitable
I hope my answer helps you.
