Answer:
(1) If discount rate is 7%, present value of $1,400 paid in three years is $3,674.04
(2) If discount rate is 8%, present value of $1,400 paid in three years is $3,607.94
(3)If discount rate is 9%, present value of $1,400 paid in three years is $3,543.81
Explanation:
We can use excel or manually calculate as below:
(1) Discount rate is 7%:
= $1400/(1+7%)^3+$1400/(1+7%)^2+$1400/(1+7%) = $3,674.04
(2) Discount rate is 8%:
= $1400/(1+8%)^3+$1400/(1+8%)^2+$1400/(1+8%) = $3,607.94
(3) Discount rate is 9%:
= $1400/(1+8%)^3+$1400/(1+9%)^2+$1400/(1+9%) = $3,543.81
I attached the calculation in excel for your reference.
Answer:
<em>The correct answer is:</em> cost leadership
Explanation:
According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.
The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.
The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.
Answer:
Debit Supplies expense account $650
Credit supplies account $650
Explanation:
When supplies are purchased but yet to be used, the entries required are
Debit supplies account
Credit cash/accounts payable
When supplies are used up, the entries required are
Debit Supplies expense account
Credit supplies account
As such where On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet, the supplies used up
= $1,000 - $350
= $650
adjusting entries required
Debit Supplies expense account $650
Credit supplies account $650
Being entries to recognized supplies used up.
Answer:
the unit sales to attain the monthly target profit is 4,280.08 units
Explanation:
The computation of the unit sales to attain the monthly target profit is shown below:
= (Fixed expense + target profit) ÷ (selling price per unit - variable cost per unit)
= ($387,040 + $17,000) ÷ ($160 - $65.60)
= $404,040 ÷ $94.40 per unit
= 4,280.08 units
Hence, the unit sales to attain the monthly target profit is 4,280.08 units
Answer:
(E) net income is overstated by $225
Explanation:
With omitted income of $540 which is earned shall be added to revenue thus no with this revenue was understated.
Accrued interest payable is a liability to be recorded even if it is to be paid at a later date.
This is an expense to be recognized in Income Statement and a liability in balance sheet.
If not recognized means income is overstated with the same amount.
Net effect is -540 + 225 = $315 revenue understated
Since it is not in option correct option relevant is
(E) net income is overstated by $225.
