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3 years ago

Presented below are transactions related to Novak Corp.

Business

1 answer:

bearhunter [10]3 years ago

6 0

Answer:

1) December 3, 202x, merchandise sold on account to Sarasota Corp., credit terms 4/10, n/30, FOB shipping point.

Dr Accounts receivable 644,700

Cr Sales revenue 644,700

Dr Cost of goods sold 363,600

Cr Merchandise inventory 363,600

2) December 8, 202x, sales allowance granted to Sarasota Corp.

Dr Sales returns and allowances 27,400

Cr Accounts receivable 27,400

Sales returns and allowances is a contra revenue account that decreases sales revenue.

3) December 13, 202x, invoice collected from Sarasota Corp.

Dr Cash 592,608

Dr Sales discounts 24,692

Cr Accounts receivable 617,300

Sales discounts is another contra revenue account that decreases sales revenue.

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Read 2 more answers

How do monopolistic competitors try to make their products stand out?

BlackZzzverrR [31]

Answer:

They lower their prices.

Explanation:

As a monopoly is stablished then the next step is to reduce prices when competitors try to enter the market so they remain being the company with the biggest share of the market.

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3 years ago

Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy t

AVprozaik [17]

Answer:

A) -$10,020,000

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3 years ago

Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yield

zheka24 [161]

Answer:

WACC 10.42614%

Explanation:

First we use CAPM to solve for the cost of equity

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.04

market rate

premium market (market rate - risk free) 0.08

beta(non diversifiable risk) 1.1

$Ke= 0.04 + 1.1 (0.08)$

Ke 0.12800

Then we calculate the WACC (weighted average cost of capital)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

D 80,000 bonsd x 1,000 = 80,000,000

E 4,000,000 shares x 40 = 160,000,000

E+ D 80,000,000 + 160,000,000 = 240,000,000

equity weight: 2/3

liability weight: 1/3

Ke 0.128

Equity weight 0.6667

Kd 0.086

Debt Weight 0.3334

t 0.34

$WACC = 0.128(0.6667) + 0.086(1-0.34)(0.3334)$

WACC 10.42614%

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3 years ago

Firms A and B plan to collude in an economy for their similar products, which includes the grim strategy for punishment. They p

denis-greek [22]

Answer: C. Firm A reduces the price to $7 causing Firm B to reduce its price to $4.50.

Explanation:

Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the long-run, then Firm A will reduce the price to $7 causing Firm B to reduce its price to $4.50.

Since Firm A reduces the price to $7, this will lead to an increase in the quantity demanded of the product and therefore the firm can earn more profit. On the other hand, firm B will reduce its price to a point where the price meets the marginal cost which is $4.50.

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