Answer:
9.96%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ average investment
where,
Annual net income is $22,500
And, the average investment would be
= (Initial investment + salvage value) ÷ 2
= ($415,000 + $37,000) ÷ 2
= $452,000 ÷ 2
= $226,000
Now put these values to the above formula
So, the rate would equal to
= $22,500 ÷ $226,000
= 9.96%
Answer:
Ending cash balance for November = $52,869
Explanation:
Crane Company
Cash Budget
October
November
beginning cash balance
$16,000
$40,539
expected cash receipts
$63,000
$95,000
Total available cash
$79,000
$135,539
expected cash payments
$45,000
$76,000
excess of available cash over payments
$34,000
$59,539
financing:
Borrowings
$6,539
$0
Repayments
$0
($6,539)
Interest
$0
($131.00)
Ending cash balance
$40,539
$52,869
The ending cash balance shortfall in October $40,539 - $34,000 = $6,539
Hence, the amount to be borrowed = $6,539
In November, the company has enough funds to meet its ending cash balance as well as pay-off the borrowed amount with interest.
Interest for 2 month = 6,539 x 12% x 2/12 = $130.78 or $131 (rounded off)
Note: cash is borrowed in the first day of the month, assuming the company borrows cash on October 1, and repays on November 30, interest is payable for two months.
Answer:
D. It suggests that it is important to view internal control as an end product as contrasted to a process or means to obtain an end.
Explanation:
Internal control is a process which is effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.
Answer:
Max may be able to sue a Sal for infliction of emotional distress.
Explanation:
When a person causes distress to another individual is known as inflicting emotional distress, this act can be intentionally or unintentionally. Inflicting emotional distress can result in intense emotions that will result in anxiety and stress in people affected.
The infliction of emotional anguish is an act judged by the law for the emotional damage that it causes to the affected person, despite the absence of physical or material damage; currently, the courts take into account emotional suffering as a grievance towards the person.
For example, in the case of Max he can sue Sal for the emotional damage he caused when he received the mail informing the death of his wife, Sal was committing the act intentionally, since she knew it was not true, whereby Sal can be tried by a court if Max files the lawsuit for inflicting emotional distress.
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Answer:
The appropriate approach is "Principal-agent problems".
Explanation:
- A contradiction of objectives or priority between someone individual or organization as well as the authorized accompanying documents to operate over its behalf is considered as Principal-agent problem.
- The possession of a commodity or fundamental assigns immediate supervision of that resource to some other agency may transpire in whatsoever circumstance.
