Answer:
D. All of the statements are correct.
Explanation:
The Seller requires to
Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.
Use historical data of sales and returns and calculate the value of expected return items.
After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.
Most private enterprise mainly run to gain profit
Answer:
keep your own records to compare with your financial institutions records
Answer:
Cost of preferred stock=7.41
%
Explanation:
<em>A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future.
</em>
<em>A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows: </em>
Cost of preferred stock = D/P(1-f) × 100
D- Preference dividend
P- stock price
F- flotation cost
Preference dividend = Coupon rate × Nominal value
DATA
Nominal value = $65
Stock price = $58.63
Dividend rate=6.25%
Flotation cost = 6.5%
Preference dividend = 6.25%× 65 = 4.063
Cost of preferred stock =(4.063
/58.63×(1-0.065) × 100 = 7.41 %
Cost of preferred stock=7.41
%
Answer:
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Explanation:
Movement of Cash during the year :
Net cash flow from operating activities -$89 million
Net cash flow from investing activities $42 million
Net cash flow from financing activities $28 million
Movement during the year -$19 million
Conclusion,
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
