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3 years ago

Assume the following data concerning a purchase of merchandise by Icon Co. on April 2:

Business

1 answer:

kari74 [83]3 years ago

4 0

Answer:

Correct answer is $4,000

Explanation:

During the purchase on April 2, Icon Co. should recognize the gross amount of $4,000 purchases. Unless it is clearly stated in the problem that Icon Co. uses net method in recording discounts, said discount will be recognized and recorded upon payment of the purchases that falls into the discounted period of contract. Purchase returns will be recognized on the day the company made it.

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David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to

marshall27 [118]

Answer: (D) 5.90%

Explanation: David is going to buy a new car at $21,349.

The down payment is $3,000.

Loan amount (Present value) = $21,349 - $3,000

Loan amount (Present Value) = $18,349

Installment amount (pmt) = $352

As the payment is made monthly (12 months in a year),

Number of payments = 5 * 12

Number of payments = 60

Using the rate option in excel,

$=rate(nper,pmt,-pv,fv,type)$

Insert the variables into the option, we get

$=rate(60,352,-18349)$

By inserting the above formula in excel we get,

Rate = 0.47%

Rate of 0.47% is monthly, to get APR

$APR = (1+monthly rate)^12 - 1$

$APR = (1+0.0047)^12 - 1$

$APR = (1.0047)^12 -1$

$APR = 1.0586 - 1$

APR = 0.0586

APR = 5.86% or 5.90%

Therefore the correct option is 5.90%.

8 0

3 years ago

An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $10 comma 000 clai

Tanzania [10]

Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

Expected profit or loss = -22,200,000

Expected loss to the customer = -$22.2 m

Expected profit for the company = $22.2m

3 0

3 years ago

Crane Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $52,200 with terms 3/15, n/45.

Artist 52 [7]

Answer:

Explanation:

Crane Co

June 1. Credit: Sales $52,200

Debit: Acc receivable $52,200

Being sales on account

June 12 Debit: Bank. $ 50,634

Debit: Discount Allowed $1,566

Credit: Acc receivable. $52,200

Being payment received on sales

8 0

3 years ago

Read 2 more answers

Dividends-R-Us, Corp. is paying a dividend of $3 a share today. It is expected that the company will continue its policy of incr

leonid [27]

Answer:

Amount for each stock to be paid at maximum = $54

Explanation:

Using Dividend growth model, we have,

$P_0 = \frac{D_1}{K_e - g}$

Where $P_0$ = Expected price of share today

$D_1$ = Dividend to be paid at this year end

= $D_0 + g$

$K_e$ = Required return on investment

g = Growth rate

Therefore,

$D_1$ = = $3 + 8% = $3.24

$P_0 = \frac{3.24}{0.14-0.08}$

$P_0$ = $54

Therefore, current price for this share or sock to be paid = $54 per share.

5 0

3 years ago

Celebrities and famous individuals often make __________, or positive statements, about a product based on their personal experi

Alenkasestr [34]

Answer:

It might be endorsement.

Explanation:<u><em>To think about:</em></u> What must a celebrity endorsement always reflect? Honest opinion of the endorser. According to the Federal Trade Commission (FTC), endorsements must always reflect the honest opinions, findings, beliefs, or experience of the endorser. ... Endorsements are a form of advertising.

8 0

3 years ago