Answer:
Betty Incorporated
Journal Entries:
June 3:
DR Inventory $7,100
CR Accounts Payable (North Inc.) $7,100
To record the purchase of goods on account with terms 2/10, n/30.
June 5:
DR Accounts Payable (North Inc.) $2,600
CR Inventory $2,600
To record the return of goods on account.
June 6:
DR Inventory $2,500
CR Accounts Payable (South Corp.) $2,500
To record the purchase of goods on account with terms 2/10, n/30.
June 11:
DR Accounts Payable (North Inc.) $4,500
CR Cash Account $4,410
CR Cash Discount $90
To record the payment of balance owed to North Inc.
June 22:
DR Accounts Payable (South Corp.) $2,500
CR Cash Account $2,500
To record the payment of balance owed to South Corp.
Explanation:
The trade terms 2/10, n/30 mean that both North Inc. and South Corp. offered 2% cash discounts on amount paid by Betty Incorporated if it could settle its bills within 10 days. The net allowed credit days are 30 days, after which Betty Incorporated could be charged interest for late payment. It did not utilize the discount offered by South Corp. as it paid its bills after 16 days instead of within 10 days as stated in the trade terms.
Answer and Explanation:
a)
If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000
And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000
profits=$300,000
b)
If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.
So profits = 1000*90 + 1000*160=$250,000
c)
for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.
So everyone will buy a bundle of 1 X and 1 Y.
profits = 150*3000= $450,000
d)
If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000
Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000
and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000
total profits =$460,000
Answer:i would say weakness if its a choice
Explanation:
Answer:
200
Explanation:
Base on the scenario been described in the question, the position required if the portfolio has a beta 1 is been calculated as follows .
number of contracts required is
Number of contract =10,000,000/(500×100)
Number of contract =10,000,000/50,000
Number of contract =200.
A long put position is needed because the contracts must provide a positive payoff when the market reduces.
