Answer:
Portfolio expected return = 0.092225 or 9.2225%
Explanation:
The expected portfolio return is a function of the weighted average of the individual stocks' returns that form up the portfolio. The expected return on the portfolio containing two stocks can be calculated as follows,
Portfolio Expected Return = wA * rA + wB * rB
Where,
- w represents the weight of stocks
- r represents the return from each stock
To calculate the weight of each stock in the portfolio, we first need to calculate the total investment in the portfolio.
Total Investment = 4740 + 3260 = 8000
Portfolio expected return = 4740/8000 * 8% + 3260/8000 * 11%
Portfolio expected return = 0.092225 or 9.2225%
Ideally;
Inventory = Cost of raw materials + Cost of finished goods + Cost of work-in-progress
Assuming this ideal case, Harlan's inventory would be;
Inventory = $14,000+$25,000+$18,600 = $57,600
However, if work-in-progress inventory was listed as $0;
Then, the new work-in-progress would be;
Inventory = 57,600-18,600 = $39,000
This would reduce the inventory for Harlan Enterprises which may affect other financial ratios such as inventory turn-over ratio. As a result, such ratios will not reflect the exact position of the company.
Answer:
The statement is: False.
Explanation:
Net Income <em>is the result of subtracting a company's expenses in generating income from the total revenue and deducting taxes from that figure</em>. The net income may be distributed as a dividend among common stock shareholders or retained by the company. Instead, capital refers to financial resources such as equity, debt, trading, and working capital.
Answer:
DR Allowance for Doubtful Accounts 2,000
CR Accounts Receivable—A. Hopkins 2,000
Explanation:
Because Gideon uses the allowance method, when a debt is written off, it will be written off from the allowance that was created for doubtful debts instead of directly to the bad debt account.
Accounts Receivable will be credited to show that it is decreasing and Allowance for Doubtful debt will be debited because expenses are debited when they increase.
