Answer:
$75,000
Explanation:
Revenue is said to be earned on the deliver of the goods and services to the party that enjoys the benefits from the good or service.
As long as control of the goods has been transferred, the revenue is earned. Note that this is not when cash has been collected.
As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.
Answer:
6.2249%
Explanation:
Dividend yield = next dividend paid / price of the stock
Dividend yield is one of the components used in calculating the total return of a stock.
Total return = price return + dividend yield
price return is the return on a stock as a result of price appreciation
Dividend yield = $3.10 / $49.80 = 0.062249 = 6.2249%
Answer:
<u>Advantages</u>
Dividends
These are payments to shareholders as a way to share the profits the company has accumulated.
This is an advantage to the issuing company because they are usually not under any obligation to pay Dividends with respect to common Equity. As a result profits can be plowed back into the company to increase profitability.
Repaid
This refers to the fact that shareholders do not have to be repaid for their investment like debt holders are. Stock Holders bought a piece of the company instead of loaning money to the company so they do not have to be paid back. This is an advantage because it frees up Cashflow for the company as well as allowing it to maintain a better credit rating due to lower debts.
Future Buy-Back
This is a clause inherent in most shares. It means that the Issuing company can choose to buy back the stock at a given time in future.
This is an Advantage because it allows the Issuing company to regain control of the company at a future date.
<u>Disadvantages</u>.
Shareholders
Shareholders are people or entities who buy shares in the Issuing company. As such, they are owners in the company and have voting rights on decisions that the company makes. This is a disadvantage because it means loss of Independence for the company who now legally have to take the opinions of shareholders into account.
Net Profit After Tax
This is money that the company has after paying off interests and then taxes. This is the money that the company retains. Having shareholders means that a company may have to pay shareholders from this amount instead of retaining all of it thereby making it at a disadvantage to the Issuing company.
One Vote per Share
This means that every shareholder has a vote for every share they hold in the company. This means that Shareholders therefore have a say in the affairs of the company. This is a disadvantage to the Issuing company because it means a loss of Independence for them when decisions need to be made.
Answer: $94,300
Explanation:
Net Sales revenue will be;
= Sales revenue - Sales Returns and Allowances - Sales Discounts
= 99,000 - 1,800 - 2,900
= $94,300
Net sales revenue is imparted by sales discounts and sales returns alone in this instance.
<u>Answer:</u>
Answer for Part A and Part B is as follows:
Particulars 2016 year 2017 year
Contract Price $13,00,000 $13,00,000
Cost that has been incurred $675000 $950000
Estimated cost to complete $225000 $0
TOTAL COST $900000 $950000
Expected Gross profit $400000 $350000
Percentage that is completed 75 percent 100percent
Gross profit to be recognised $300000 $50000
<u>Note</u>: Calculations have been made according to the data and figures given in the question.
